Brander, to save you money this is what he said...
Oscar Schafer of O.S.S. Captial is in the Barrons round table. He picked FLML.
His Quote
"My second pick is FLML . Its a drug delivery company with unique technology. Its based in Lyon France but trades in the U.S. via ADR's. It has 16m shares outstanding-20m fully diluted-and trades several hundred thousand shares a day. I just visited the company. It has three Nobel Prize winners on its advisory board.
Question: And we know what that did for long term capital management.
Oscar: These guys have been very helpful, actually. FLML just elected three new directors from major pharmaceuticals co's. The company technology allows small-molecule oral drugs to stay in the body longer, and have more lasting and even effects. One technology is called Medusa which adds efficiency to injectable proteins and peptides. In addition, FLML has developed its own human insulin. Its been shown in clinical trials to be equal to or better than Aventis Lantus, the fastest growing treatment for diabetes.
Question: Dose the CO. make money?
Oscar: The company made a little money last year and will make a little money this year. FLML has already announced partnerships with Glaxo, Merck, and a private French co. called Servier. And it has received up-front milestone payments from 10 other co's, as yet undisclosed. The milestone payments from partners more than offset their R and D and overhead costs. But FLML probably will not have substantial royalties until 2005 or 2006, so it's really a long-term earnings story.
Since JAN. the stock has more than doubled, but as the story goes, it may be a better buy today than when its technology was not accepted by major pharmaceutical co's. The co. has 15 projects, each addressing a more than 1billion dollar market. If only 20% of these projects lead to contracts and royalties in the 5% to 8% range, in 3 to 5 years the company should be able to earn $5 a share on a recurring and growing basis. The stock is at about 12 and could go up a multiple of its current price. By the end of the year the company might have one or two more licensing agreements on the micro pump and a licensing agreement for human insulin on the Medusa side."
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Tomorrow should be interesting....wife and I are off to Austin for a few days....Take CARE! Don't do any surgery tomorrow around the time the market opens...(:>) You might need steadier hands!!!!! |
