Martek Biosciences---- future biotech cash cow! Message Board

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

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To: Asymmetric who wrote (21)	3/21/1996 8:39:00 AM
From: bill small	of 258

Peter, good to hear from you again. I'll check out the web site you mention. Until the Matek meeting, the view I had about valuing the company was exactly as you have outlined. Margins on $300M would be VERY HIGH because remember one half of this is from licences and the other half from sales of product to the formula compaies. But after thinking about things and listening to Martek guys at the meeting, I see potential way beyond this. If DHA takes off even modestly as a valued supplement to diet, I can see anywhere from $500M to $1B more revenue. And all this just from the DHA product. Beyond that are the other things in the pipline which I am valuing at 0 for now but are bound to produce positve results at some point in the future. The FDA has already approved DHA for sale in capsule form in US. Martek got what's called GRAS approval last quarter. I obtained samples of the capsules at the meeting. Martek is doing wise market research on them; they are now sold at one store locally. I do believe FDA approval is necessary as formality before formula can be sold but Martek sees this as a simple process which will be done by formula companies probably this fall just prior to US launches. If my valuations are even in the ballpark, then Martek is way undervalued when earnings 3 to 4 years out are considered. The large houses which follow Martek haven't factored in yet the type of projections I'm talking here. I know by looking at their analysis. I think as the DHA awareness campaign takes hold the additional sales beyond formula will start to appear in analyst reports and projections will stretch beyond current ones. There hasn't been any announcement I'm aware of to drive stock price since meeting. My theory on the price gain is some rick shareholders at the meeting were impressed as I was and added to holdings. Why don't you start a thread on ikos and tell the story. Biotechs in general took a bad tumble yesterday and my appetite is wet for more. best.............Bill

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