SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Galapagos Islands
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: stevenallen who wrote (43241)7/1/2003 12:30:59 PM
From: tuck  Read Replies (1) of 57110
 
>>what do you think about buying MLNM for a bounce here? <<

Very tempting. Can't guarantee an instant bounce, but this looks like a good long term entry price. Market disappointed in the upfront payment, because it makes it a bit dicey to hit this year's revenue targets (though I believe Levin essentially reaffirmed guidance during Q&A on the CC.) But in the long haul this is a good deal. The wild card is royalties. We're not going to get more than hints about that till next year when Velcade is launched in Europe (assuming EU approval by year end), and the royalties start coming in. However, MLNM has the option to co-promote in the EU, and that prompted an interesting question and answer. Revenue was said to be roughly the same under royalty or copromotion scenarios. This implies a pretty darn high royalty rate, probably 25% or better.

So I think MLNM looks good in the long haul, but it could be without drivers for a few weeks (I doubt there's going to be enough U.S. Velcade sales in this past quarter to make any meaningful extrapolations). So it could well trade with market for a while. It seems to be holding the NAZ 1600 level, so a bounce play looks plausible; of course, the usual prudence of using stops is called for. I'm thinking another entry possibility would be after digesting earnings guidance.

Cheers, Tuck
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News