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Biotech / Medical : Matritech (NASDAQ - NMPS)

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To: Miles Rhyne Hoffman, CFA who wrote (300)11/7/1996 10:25:00 PM
From: eugenic1   of 849
 
CYTYC CORPORATION (NASDAQ: CYTC) jumped another $3 1/8 to $17 1/4 today after
adding $2 1/4 yesterday. The Food and Drug Administration ruled that the company's ThinPrep
cervical cancer detection method is significantly more effective than the pap smear method, which
has been used for 50 years. The company's products reduce the chance of misdiagnosis of cancer
and also help doctors and technicians catch early-stage cancer more effectively. Since
pre-cancerous in situ cases of cervical cancer are much more common than invasive cancer,
according to the American Cancer Society, investors believe that the company stands a good
chance of capturing a sizable portion of the market, which is estimated to be as large as $2 billion,
according to The Wall Street Journal. If the company's product saves lives with a patented
process, then it would probably have little problem charging the $20 extra for each test that the
Journal cited. Putting a 2 times sales multiple on Cytec, it looks as though investors are pricing in
about 5% market share for next year.

How does nmp technology rate against this method?
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