Is the market not a bit too pessimistic about MDYN?
1) They have (short-term) problems with their Gel and Blot scanning products (83% of '97 rev). And there are start-up problems with their sequencing product, MegaBACE, (8% of '97 rev), however, this can happen when introducing a new&complex product, as MegaBACE. However, I am amazed about the fast pace, at which the microarray-access programm (9% of '97rev) is progressing: Look at the list, reads like who is who in pharma&biotech (smith-kline, AHP, Bristol-Myers, Chiron, Dupont, Rhone-Poulenc, Incyte, Hoechst, etc): Of course, signing the access-programm doesn't imply that the subscriber will buy the systems on a large scale, later on; However, it is a clear signal of commitment; and do not under-estimate the value of having worked with a system for a certain time-period: you get used to how it works, etc, and if the system is ok, there is little reason to switch to another one later-on. Looks bullish to me. And genetics-research IS exploding.
2) MDYN's has a strong partner in Amersham. Amersham became even stronger due to the two mergers (pharmacia, nycomed) in 1997. Their collaboration with MDYN figured very prominently in their 1997 AR, and Amersham has all interest to put all their weight in the marketing of MDYN's products.
3) I don't like the superficial way in which MDYN's management deals with the current problems (press releases). However, at least they announced some share buy-back.
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