As your request, info on BGEN....
Biogen historically developed many drugs for big blue chip
medical companies. Today most of their revenue is from royalties
because of the blockbuster drugs on the market. I do not think they
wanted to develop drugs on their own because of the enormous R&D
expenses, thus the reason for all the numerous partnerships. They
were paid to develop these drugs, and the bottom line is the result.
The company develops drugs for the healthcare market for example,
"MS", cancer, hep B & C, and many others similar to AMGEN, but
contrast to AMGEN, they are not a one product company because of the
partnerships. They are also about 5 billion in market cap where
AMGEN is over 20 billion in mkt cap. There is a lot of room to
grow here.
Late last year, the company decided to start marketing their
own drugs to get the bulk of the cash. They can do this now
because of the financial strength they have today. The first
drug was released in the 4th quarter I believe, called AVONICS
(uncertain of spelling). Anyway, the drug is much better than
Betaseron from Chiron and is taking market share away from them.
The drug is selling like gangbusters in fact! There are also
numerous other drugs coming to market in the next couple years
that will extend the life of many needy individuals. There are
great things to come, and Biogen is probably one of the only
Biotecks with a very STRONG bottom line.
I relate this stock much to ORBI is emergence of a growth phase
from an R&D phase because there is a lot of good things to come
within the next couple years or so. In fact the earnings expectations
are similar to ORBI for the years ending 1998 and 1999. The net
earnings per share expectation is up substantially in 1999 compared
to 1998. There are not a whole lot of companies on the market
that I can say this about.
Besides, tech stocks are going to have their troubles as the industry
matures! It is not a place I would put my money unless it deals
with the internet, where revenue is drawn by commerce and advertising
much like television. Computer hardware, software, and semiconductors
are places that I would avoid in general, and I would compare those
catagories similarly to the airline industry with its ups and downs.
Biotech, satellite, space, communication SERVICES (not hardware), and
internet related stocks with advertising, like Yahoo or AOL, are
place to invest in the next 5 to 10 years. Besides, medical stocks
like Biogen are more like a "Flight to safety" when the market starts
declining, much like consumer non-durables as Procter & Gamble.
Any questions?
My picks are: 1. ORBI, 2. BGEN, 3. YHOO, 4. HD, 5. HDI, 6. DIS
(but YHOO only on a pullback and the rest at regular accumulation
at current levels).... |
