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Biotech / Medical : Martek Biosciences---- future biotech cash cow!

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To: bill small who wrote (27)9/5/1996 1:34:00 AM
From: noronha   of 258
 
to: Bill Small
from:Noronha
The August issue of Discover magazine has an article that verifies the benefits of the DHA/ARA fatty acids. Note, however, the study demonstrated that it was beneficial not only in pre-term infants, but also in full term infants. Thus, speculation by Wall Street bears that Formulaid was applicable to a scant 2% of the market was utterly false and hence the bounce from 18 to 30 in the last few weeks. The study also mentioned that the FDA was likely to mandate that these fatty acids be included in all baby food formula-this is likely in the spring of '97. Also, Martek will sign up all manufacturers because this is a commodity type market-if companies don't include it while others claim to be "closest to human milk" they will suffer big market share losses. Couple this with the ongoing PR
campaign in 24 of the top 25 markets in the U.S. and the potential is so obvious. A mutual fund manager recently said that in 2-3 years it should trade at $100 (not a typo). The venture capitalists aren't going to sell soon either. I have a position and I am very confident that patience will be richly rewarded. There are no assurances but this is a phenomenal story that Wall Street is slow to appreciate.
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