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

To: smh who wrote (1406)	10/6/1999 5:09:00 PM
From: Biomaven	Read Replies (1) \| Respond to of 1514

smh, No, I don't think this is right. From their 10-K released in March: Catalytica Pharmaceuticals currently produces final dose form and/or packaging for a number of pharmaceutical clients including Allergan, Glaxo Wellcome, Monarch, Medeva, and Warner Lambert. There is currently excess manufacturing capacity immediately available at the pharmaceutical facility. As a result of a planned reduction in Glaxo Wellcome business and the long lead times required to establish necessary regulatory approvals to manufacture at this facility, Catalytica Pharmaceuticals anticipates a possible reduction in revenue from its PPO facility in 1999 Don't know for sure, but it looks to me that the place GLXO is cutting back is also the place CTAL has extra capacity. (Of course with lead times in this area being so long, it's hard for the company, let alone us, to predict what's going to happen a few years out). In any event, last time GLXO expanded their deal, I recall CTAL getting better terms on the new products. Basically, any reduction in overall industry capacity has to be good for CTAL. Peter