Epix Medical (NASDAQ: EPIX) is developing injectable targeted contrast agents for use in magnetic resonance imaging (MRI). Its lead product, MS-325, is currently in Phase II for radiology, cardiology, and breast cancer imaging. This contrast agents fulfills the need of making X-ray angiography obsolete. X-ray angiography has high cost ($2,500), major side effects (limb loss, kidney failure, storke, even small mortality risk), and yet over 3 million of them are performed each year. With MS-325, highly invasive X-ray angiography could be replaced by a simple, non-invasive, faster, and less expensive MRI.
Phase II results will be announced the first two weeks in July 1998. Everything suggests that the results will be very positive. Phase I results demonstrated significant utility and efficacy. With $40MM in cash, probable positive results on the way, and a low current market cap of $128MM ($10.25/share), the stock should rise significantly after Phase II results are announced. If this thing gets through Phase III, it will be a $1BB company, so after it gets through Phase II, I'd expect it to take a solid step in that direction. |
