From Motley Fool on DLJ release today:
<<Alex To of DLJ just issued the following report at 2:30PM today:
"Interneuron stock was down substantially today (13.375). We see no reason for such decline. The stock is reacting to no new issues, other than 3 day old news of Redux market withdraw. As we have repeated many times Redux is water under the bridge, and is not a reason to buy the stock. As to the company's potential liability on Redux, it is too early to quantify and it is too early to determine if the company has any liability at all. At
any rate, any conclusion on the lawsuits will not likely be reached until years from now. At that time, IPIC should have several large products on the market already. Again, the reason to buy IPIC is for its potential from the new product pipeline. We continue to recommend to aggressively take advantage of the stocks weakness and build position. We continue to maintain our target price on IPIC at $40."
And Lehman Bros released this on 9/15 at 12:07 PM:
"We remain confident that the company will file its NDA for citicoline next month; citicoline, along with bucinolol and pagoclone, remain the focus of valuation. Our 12-month target moves to $33, we continueto believe the inherent value in IPIC to be greater than current market value and maintain our 1-Buy rating. The net results to our financial projections for FY1997 is a redduction from ($0.81) to ($1.73). For FY 1998, the lost Redux
revenues are offset by decreased spending, thus our projections are actually increased from ($2.54) to ($2.18). FY1999 similarly moves from ($0.59) to ($0.28). Future drivers of the company, its financial growth, and the stock continue to be citicoline (CerAxone), bucindolol, pagaclone, and Lidodex NS. We anticipate milestones from these products to include an NDA filing for citicoline (stroke) in October. Further, by yearend we would also
expect the Bucindolol (CHF) pivotal program to potentially be halted early, for preliminary Phase III pagoclone (panic disorder) results tobe announced, and for an IND to be filed for Lidodex NS (migraine)> Our valuation model has changed, now reflecting citicoline at $617 million, Bucindolol at $133 million, pagaclone at $128 million, and Lidodex NS at $66 million. These compounds, plus our estimates for the value of the subsidiaries,
generates a present value of $26.50 and a 12-month value of $33.00 per share. Thus, the absence of Redux only marginally deflates the overall value of IPIC shares. We remain with our 1-Buy rating.">>
|
