Thought this was worth posting. (Wedbush Morgan was co-underwriter
for AVGN's IPO.)
LOS ANGELES--(BUSINESS WIRE)--Oct. 21, 1996--Avigen Inc.
(NASDAQ:AVGN) is ``an attractive investment opportunity,'' according
to a research report from Wedbush Morgan Securities analyst Alexander
K. Arrow, M.D.
With this report, Wedbush Morgan initiated research coverage of
Avigen, a newly public company based in Alameda, Calif.
Rating Avigen a buy, Arrow said that although it is ``still a
developmental-stage biotechnology company,'' it is nonetheless ``in a
strong competitive position.''
Avigen, Arrow noted, is working to produce commercial gene-therapy
products by harnessing the AAV (Adeno-Associated Virus) vector gene
transfer system.
``Gene-therapy products and techniques, which treat human disease
at the cause rather than affecting symptoms, now have not only the
possibility but the distinct likelihood of supplanting many symptom-
based therapies during the next 10 years,'' Arrow said in his report.
Arrow said his rating of Avigen was based on several factors:
-- The company's ``proprietary possession of the most efficient
manufacturing process for the AAV vector system will give it a
significant competitive advantage over other gene-therapy companies
utilizing AAV, since Avigen is approximately 1,000 times as efficient
in its production.''
-- ``The acceptance of AAV vectors as the most effective, safe and
durable form of gene therapy, and Avigen's position as the sole
company founded exclusively on AAV technology, will position it at
the nexus of many future collaborations and licensing agreements.''
-- ``The entire field of gene therapy is expected to expand
following the appearance of the first commercial product.''
-- ``Avigen's current valuation is likely to expand following the
announcement of the first corporate partner, with resulting
validation of Avigen's technology.''
-- ``The rate of corporate collaboration announcements is likely
to increase in the next five years, as many more therapeutic genes,
discovered in part due to the Human Genome Project and the efforts of
genomics companies, will be in need of effective gene-delivery
systems.''
Wedbush Morgan Securities is one of the oldest and largest
independently owned securities and investment banking firms in the
western United States.
CONTACT: Wedbush Morgan Securities, Richard F. Roper, 310/393-0622 |
