:Business and Finance:Stocks:Healthcare:Biotechnology and Drugs:LIPO (Liposome Company, Inc.)
5:50PM EDTPositive article on Liposome in Bioworld Today dated Aug. 5, 1998.......Just some excepts: The Liposome Co. "has a little color in its cheeks." That's how Alex Zisson, an analyst at H&Q described the Princeton, N.J., company which is showing signs of recovery a year after suffering a Phase 3 blow-up of Ventus......While the stock is still on the low side, Zisson is optimistic. "They had a great quarter," he observed. "A lot of people, analysts, had written them off. They came close to breaking even this quarter, which was a huge shock to people on Wall Street," he said adding, " I came in low at $0.12 (net loss per share), and that wasn't even close. They came in with much better numbers than anyone ever thought." Indeed, the Princeton, N.J., company is expecting to achieve profitability next year, something even Zisson admits few would have believed just months ago..........."Some had felt that sales growth of Abelcet would stop or there would be a price war," said Zisson. "But it seems the anti-fungal market is strong and converting to a liposomal format." "Pricing has stabilized and we don't expect any price wars like we had in 1997. That has helped," Hoffman (the Liposome's Co. CFO) said, adding, "In fact, we've been able to increase our price for Abelcet in certain facets of our market effective July 1."..........Hoffman also observed, "We have initiated cost controls and it has helped in reducing our losses." One move was a to switch the manufacturing of Abelcet from its Princeton N.J. plant to a larger one in Indianapolis, a move that has lowered unit costs..............They are now gaining visibility with the FDA on Evacet and it's perfect timing for Evacet," Zisson said. "They're continuing to grow Abelcet. The trials were good on Evacet. They got plenty of cash to bring ELL-12 through trials. "It looks like the Liposome Co. is getting ready to turn from a one-product company and move to being a complete and profitable company."
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