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Biotech / Medical : NexStar Pharm(NXTR)

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To: Miljenko Zuanic who wrote (281)3/30/1998 2:52:00 PM
From: Steven Yang  Read Replies (1) of 328
 
To all:

I find that NXTR's 10K is available on line. I find, just glancing, that Sumimoto (sp?) is going to pay a milestone payment to NXTR of $3M. I guess that this milestone is the completion of clinical trial. If Am is approved in Japan, it is going to pay NXTR another milestone payment. It will then buy the drug from NXTR at cost, and pay a royalty for Am's sale in Japan.

With this extra $3M coming in 98Q1, it seems that NXTR will show a better number for the quarter than expected. Of course, the long term outlook lies in the improved sale of Am in US and in Europe, and the progress on the clinical trial of Mk.

MZ: thanks for the info. regarding the market potential of Mk.

Bill: When NXTR management says that its competitors are selling their drug below cost, my understanding is that they are selling at a price that they can not recover all the research funding, not that they are selling at a loss on an on-going basis.

Steve

ps: SEQU has been moving up quite a bit lately. There are some takeover rumors. If it were true, it would be positive for NXTR as well.
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