Thursday April 15, 1:44 pm Eastern Time
RESEARCH ALERT-CSFB starts bio-tech stock coverage
NEW YORK, April 15 (Reuters) - Credit Suisse First Boston biotechnology analyst Dr. Alex To, M.D., said Thursday he initiated coverage of several stocks in the sector.
-- In research notes, To initiated coverage of Biogen Inc. (Nasdaq:BGEN - news) with a buy rating and set a 12-month price target of 135.
-- ''Biogen's near-term fundamentals remain strong, though competitive pressure could moderate Avonex's sales growth later this year.''
-- ''New Product pipeline is still in the early stages.''
-- ''Biogen shares could move up with the biotech group, but substantial downside risk exists at the current price should there be clear signs of Avonex's growth slowing down.''
-- Avonex is used in the treatment of multiple sclerosis.
-- Biogen's share price is down 1-1/4 at 103-1/8 on the Nasdaq stock market.
-- Initiated coverage of Amgen Inc. (Nasdaq:AMGN - news) with a strong buy and set a 12-month price target of 100.
-- ''Epogen and Neupogen expected to show strength in the near-term.'' Epogen is used for kidney dialysis patients, while Neupogen is used for cancer and AIDS patients. Both sell more than $1 billion worth per year.
-- ''NESP an excellent vehicle to the worldwide anemia markets, should serve to increase Amgen's growth rate.'' NESP is a second generation Epogen product.
-- Says Amgen's new product development pipeline has less to offer after NESP except for Abrelix, developed as a treatment for hormone-responsive prostate cancer and endometriosis.
-- Amgen share price is down 3-11/16 at 68-1/4 on Nasdaq.
-- Immunex Corp. (Nasdaq:IMNX - news) was started as a strong buy with a 12-month price target of 117.
-- ''The continued robust sales growth of Enbrel, a promising new drug for the treatment of rheumatoid arthritis, is expected to propel earnings.''
-- ''Novantrone could be expanded into the multiple sclerosis market.'' Novantrone is currently used to treat various forms of cancer.
-- Says new product pipeline is strong.
-- Immunex shares were up 3-15/16 at 77-3/16 on Nasdaq.
-- Chiron Corp. (Nasdaq:CHIR - news) initiated with a strong buy and 12-month target price of 40.
-- Chiron ''is our best biotech investment idea.''
-- ''We project a 25 percent year over year earnings growth. Chiron's return on invested capital is expected to grow 9 percent to 17 percent over the next five years.''
-- ''The standstill agreement between Chiron and Novartis will expire in two stages starting in January 2000. A possible buyout scenario by Novartis may further act as a catalyst to Chiron stock.''
-- Chiron's stock was down 3/16 at 20-3/8 on Nasdaq.
-- Affymetrix Inc. (Nasdaq:AFFX - news) initiated with a buy rating and a 12-month price target of 50.
-- "As one of the key players in the DNA array field, Affymetrix' GeneChip System is a standard platform for genomics research from which new drug discovery and genetic testing evolve.
-- Sees Affymetrix' profitable by the end of year 2000.
-- Affymetrix stock price down 1-5/16 at 37-1/2 on Nasdaq.
-- Centocor Inc. (Nasdaq:CNTO - news) initiated with a hold rating and a price target of 35.
-- ''Initial sales of Remicade for Crohn's disease were somewhat disappointing in our view. Its real potential, however, lies in the possibility of a label expansion for treating rheumatoid arthritis.''
-- Centocor share price down 2-1/8 at 34-1/4 on Nasdaq.
-- MedImmune Inc. (Nasdaq:MEDI - news) initiated with a buy rating and a 12-month price target of 65.
-- Expects a 40 percent season-over-season sales growth for Synagis, used to help prevent respiratory syncytial virus (RSV). RSV affects both upper and lower respiratory tracts.
-- MedImmune is down 3 at 51-1/2 on Nasdaq.
-- Initiated Genzyme General Corp. (Nasdaq:GENZ - news) with a strong buy and a 12-month price target of 67. Share price down 3-5/16 at 41-13/16.
-- Initiated Genzyme Tissue Repair (Nasdaq:GZTR - news) as a buy with a 12-month price target of 5. Share price is up 1/4 at 2-1/2 on Nasdaq.
-- Initiated Genzyme Molecular Oncology (Nasdaq:GZMO - news) with a buy rating and set a 12-month price target of 5. Share price unchanged at 3-1/2 on Nasdaq.
-- Initiated Human Genome Sciences Inc. (Nasdaq:HGSI - news) with a buy rating and set a target price of 50. Share price down 1/16 at 36 on Nasdaq |
