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Biotech / Medical : Catalytica Energy Systems, Inc. (CESI) -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (1404)	10/6/1999 1:39:00 PM
From: WTMHouston	Respond to of 1514

I saw the news earlier and immediately thought that it was good for CTAL. Not only might it slow taking some back in house (if much of that was happening), it may even produce more being contracted out. Electonics have gone to the ECMs. Drug companies are going to the CTALs..... Long term good news IMO. Troy

To: Biomaven who wrote (1404)	10/6/1999 4:54:00 PM
From: smh	Read Replies (1) \| Respond to of 1514

Peter, I'm not so sure this is good. Obviously, the continuing trend to outsourcing is good for CTAL. However, I think CTAL is at capacity going forward in the areas GLAXO business utilizes (not sure) and since new business is higher margin, it may be that the faster GLAXO phases out the better... up to a point? The SYNERCID deal and its apparent outsourcing history seems to be another indication that CTAL may be viewed as an above average outsource provider, with obvious implications for both volume and margin. Regards SMH