Richard,
That is actually rather close to what I meant. I look forward, as much as anyone, to "shrinking some tumors." Still, if MGI had only 114, and no Salagen cash cow, I would not be interested in its shares, at this price. With both, however, it is quite another matter.
MGI-114 has been described (rather appropriately, I think) on this thread as a "lottery ticket." What is interesting about MGI, however, is that the company appears rather cheap, *even without* that lottery ticket. That is my kind of investment. If we do hit the lottery, MGI could well be a 50-bagger, or more (what is $8 billion, between friends?) If not, I can live with more modest returns. In any event, I see no real downside from here. That is highly unusual in this sector, as we all know too well.
One thing I am still trying to understand better is the size/profitability of the Salagen market. Just how large is it, really? (I have read extremely wide-ranging estimates that primary Sjogren's is from $30 million annually, and up.) How significant (in numbers of patients, or in dollars) is the fact that approval was unqualified, and not just for primary Sjogren's? How would a company of MGI's size best go about increasing the levels of awareness and diagnosis in this market?
RB |
