Hold your Watson, from my sources, that one should at least double from its current price within three years. Same sources say Andrx has
the potential to rival a lofty priced Watson down the line, hence the Watson 19% ownership. My source bought Circa at rock bottom, margined
out a 150k investment to $750,000+. He now owns a little over 150,000 shares of Andrx, and will not sell until the news starts to break. From what I understand once the news begins, it will just continue. So many JV's and new stuff (what ever that means) down the line that the stock will be hard to get. Secondly the majority who currently own the stock will not sell until the real high prices come in. That's where the supply and demand come-in. While I do believe the Sepracor deal does have great promiss, the real lift is just their basic delivery technolgy. An aging market of multiple dosage medicines simplified to one tablet a day. It only makes sense. To my knowledge Andrx simply has more relationships than are known at this time, and in a competitive market in which market share is everything, more companies are going to have to rely on Andrx to produce the same variables. Also as they begin scaling their production and prove to be sucessfull that is when everyone starts to jump on the bandwagon. Most of Andrx deals are 40/60 or 50/50 deals. You provide the product, will extend the market value my time release dosages. I will look into the deal and let you know the royalty. Obviously as they gain alliances, and start producing they can obviously negotiate better deals for themselves in the future. I do not want throw around prices but again I was told mid 70's very possible. Obviously that's a nice number from where it is now. And you know as well as I do, that the major market mover's want everyone out of Biotech's not just for its recent slump, but because they want to begin buying soon. Like you said panick and lose you shirt, buy near the bottom you often have a greater chance of upward movement than down. Some of the stocks you mention, I will have to do some homework to value the situation. You have to realize though Andrx has a core technolgy that has broad market appeal, that can be marketed to almost any manufacturer or producer. The potential dollar market could be explosive all around. AB rated Procardia XL, not sure will try to find out. Major research areas are just begining to open up, because it was a recent IPO information was pretty limited. Im now finding more and more, as in the past it was from my single source. I believe Watson will still be a very good company, and if I had more to invest I would be buying some Watson. I think Netscape is still a great stock, although more speculative, I think they stand a great chance not only surving but thriving. |
