From Yahoo LIPO thread. Montgomery rate it BUY.
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Montgomery Securities - 12:10pm
PDT 18-May-98
sbinsanjose
(49 creeping up on 50/M/San Jose,
CA)
May 18 1998
8:25PM EDT
Following scanned from a fax and manually corrected.....I think I got all the OCR errors corrected.....I don't
know how this is going to layout in the post, but thought it might be of interest to someone...Do your own
research....just posting what I see....
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12:10pm PDT 18-May-98 Montgomery Securities (D. Crossen 415 627-2955) LIPO
LIPO: Herceptin Data in Breast cancer a Major Boost for Liposome's D-99
NATIONSBANC MONTGOMERY****NATIONSBANC MONTGOMERY****NATIONSBANC
MONTGOMERY
THE LIPOSOME COMPANY, INC. RATING: BUY
May 18, 1998 BIOTECHNOLOGY NASDAQ: LIPO
David K. Crossen (415} 627-2055 First Call
Tom E. Hancock (415) 627-2487 DJIA; 9089
S&P 500:1108
Price: $7-7/8 FY Ends 12/31 1996 1997A 1998E
52-Week Range: $28-4
Fully Diluted Share O/S: 39 MM Q1 (Mar) ($0.16) ($0.12) ($0.13)
Market Capitalization: $295.6 MM 02 [Jun] (0 17) C0.23) (0.14)
Avg. Daily Vol. (3 mos.); 257,983 Q3 (Sep) (0.16) (0.17) (0.12)
Secular EPS Growth N/M 04 (Dec) {0.09) (0.191 (9.10)
1998E Revenues: $66.8 MM Fiscal Year {$0.57) ($0.71) ($0.49)
Market Cap./Revenues: 4.4x P/E W/M N/M N/M
12/97 Total Debt: N/M P/E/S N/M N/M N/M
12/97 LTD/Total Cap.: N/M
12/97 ROAE: N/M
12/97 Shareholders' Eq.: $73.7 MM
12/97 book Value/Share: $1.96
Dividend/Yield: None
ú NationsBanc Montgomery Securities LLC currently maintains a market in this security.
HERCEPTIN DATA IN BREAST CANCER A MAJOR BOOST FOR L!IPOSOME'S D-99
Data presented over the weekend on Genentech's Herceptin {an antibody directed at the HER-2 receptor)
provides some encouragement for patients with breast cancer. However, the data could provide a major boost
for Liposome's D-99, a liposomal version of doxorubicin, and for Sequus's Doxil.
Only 30% of breast cancer patients express the HER-2 receptor and would be candidates for treatment.
However, in appropriate patients the combination of Herceptin and chemotherapy increased the response rate
for patients to 49% from 32%, with the duration of response increased by 57% and overall remission increased
by 65%.
In particular, Herceptin, plus showed a 52% response rate vs.
43% for doxorubicin alone, and Herceptin plus Taxol showed a 42% response rate vs. 16% for Taxol alone.
The problem with the Herceptin/doxorubicin combination, is a significant increase in cardiotoxicity vs.
doxorubincin alone (over 16% vs. 2% for doxorubicin alone).
The availability of Herceptin, which we believe will be widely used, virtually mandates that a Liposomal version
of doxorubicin with a lower risk of cardiotoxicity will be used.
We expect that D-99 will be approved by year-end 1998 and launched in early 1999 by The Liposome
Company. We believe the price for six cycles will be in the range of $6,000 vs. $16,000 for Sequus's Doxil.
We believe D-99 has the potential for sales in excess, of $200 million. We maintain our BUY on The Liposome
Company.
The Liposome Company develops encapsulated liposome based drugs for %he treatment of serious fungal
infections and other diseases. The company currently markets Abelcet, & liposomal therapy for the treatment of
systemic fungal infections. D-99 is also in development for breast cancer.
First Call Corporation - all rights reserved. 617/345-2500
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