harry, Here are more details on the Morgan Stanley upgrade:
12/3/96 =Centocor Stk Up -2-: Analysts Tout ReoPro, CenTNF >CNTO
NEW YORK (Dow Jones)--Centocor Inc. (CNTO) shares rose 16% after
two analysts reiterated positive comments about the company.
Meirav Chovav, of Salomon Brothers, assuaged fears of a
slowdown in sales of the company's anti-clotting drug, ReoPro,
in morning comments.
Meanwhile, Eric Hecht, of Morgan Stanley, touted the potential
of what's next in line, CenTNF, an anti-inflammation drug.
Hecht raised his 12-month target price to 51 from a range of
40 to 45.
Nasdaq-listed shares of Centocor were up 4 5/8 at 33 5/8 on
volume of 3.2 million, compared with average daily volume of
1.14 million.
Chovav said she expects ReoPro sales to reach $50 million in
the fourth quarter, alleviating concerns that the drug's growth
was flattening. ReoPro had sales of $37.2 million in the third
quarter and $38.5 million in the second. Centocor splits sales
of ReoPro 50/50 with Eli Lilly & Co. (LLY).
Chovav had maintained, as did the two companies, that the
relatively flat sales were a seasonal bump. This quarter,
ReoPro's high profile at the recent American Heart Association
meeting help restart the momentum.
The next product for Centocor, CenTNF, could match or exceed
the success of ReoPro, analysts predict. Hecht said he foresees
CenTNF sales of $225 million in the year 2000, with an upside
potential to that number. Hecht predicts Centocor will market
the drug by itself in the U.S. and have a partner to help sell
it abroad. Hecht expects a launch of the drug in mid-1998.
The company is finishing Phase III studies of the drug in
treating Crohn's disease, a relatively rare intestinal
inflammation disorder. However, the greater sales potential
rests in its use for rheumatoid arthritis, for which Centocor is
in Phase II trials.
(END) DOW JONES NEWS 12-03-96
11:46 AM |
