Hi! Dr. Right,
One messaage you may be interested:
A New Deal For Fallen Biotech Angel? (AMLN)
Tuesday, May 5, 1998
Insider trading monitor Vickers Stock Research reported
substantial insider buying in March 1998 at biotech fallen
angel Amylin Pharmaceuticals (AMLN), particularly from the
firm's new and former CEOs. The developer of hormone-based
therapies for diabetes lost a major portion of its business
in March 1998 when Johnson & Johnson announced it would end
its partnership with Amylin despite a $165 million
investment to date. The loss sent the stock from $5 to below
$3 and forced Amylin to lay off 25% of its staff.
This insider activity caught the eye of tech investor
Michael Murphy. Rumor has it that Amylin's new CEO, former
Eli Lilly VP Joseph Cook, Jr., is closing in on a deal with
his previous employer. "Lilly is big in insulin," Murphy
says, "and little would give them more pleasure than to take
a product developed with $165 million of Johnson & Johnson's
money and beat J&J about the head and ears with it."
The stock jumped back up to the $5 range on the rumor.
Murphy says it would immediately double on news of a deal
with Lilly, as would good results from Phase III testing of
the diabetes therapy. Murphy recommends buying now and
holding on for a year, with a long-term target of $100 in
mind.
For more on Michael Murphy's recommendation see "Quick Picks
#3," May 4, 1998, Dick Davis Digest. The digest excerpts
from over 400 investment publications highlighting
important, timely and relevant advice.
investools.com
For more on insider trading see "The Complete Vickers Weekly
Insider," April 29, 1998, Vickers Weekly Insider. Richard
Cuneo provides the most up-to-date information on
transactions and holdings of corporate officials,
significant shareholders and institutions.
investools.com
zwl |
