THE WALL STREET TRANSCRIPT PUBLISHES BIOTECHNOLOGY STOCK ISSUE
NEW YORK, Nov 3, 1999 /PRNewswire via COMTEX/ -- Six leading analysts
and sixteen Biotechnology CEOs examine the Biotechnology sector in the
latest issue of The Wall Street Transcript (212-952-7433) or
twst.com.
In a vital review of this sector for investors and industry
professionals, this significant 112-page report features:
1) Outlook for Biotechnology - Extensive Analyst Interview (4,900
words), Peter Drake, Ph.D., Managing Director of Equity Research with
Prudential Securities examines investing in later-stage vs.
development-stage companies, M&A outlook, management performance and
specific stock recommendations.
I think that you would have to look at the overall industry today and
recognize that there are three different segments of the industry,
Drake explains, "There are the mature commercial companies that were
founded back in the late 1970s and early 1980s that have seen their
pipelines develop over time and bear commercial fruit. The next segment
of the industry are what we call the development-stage companies, and
those companies are in advanced clinical testing, have multiple
products in the clinic and are soon to be commercial entities and,
therefore, successful revenue and earnings organizations. Then there
are public venture capital companies. These are, generally speaking,
fledgling biotech companies that have resident within their corporate
skill set technology capabilities that are being applied to drug
discovery but at a very early stage. I think from an investment
standpoint, the later-stage commercial companies are very attractive
investment opportunities; we think a select group of the
development-stage companies are attractive; and we are being cautious
in our recommendation of the public venture-capital companies."
My single best idea, and a stock that I am very keen on right now,
Drake states, "is MedImmune (Nasdaq: MEDI). MedImmune is a
Maryland-based company. It is one of the leading commercial biotech
companies that is focused on the development of products for the
prevention and treatment of infectious diseases and for use in
transplantation medicine. The flagship product that the company has
developed is a product called Synagis, and it is marketed in the United
States for the prevention of RSV (respiratory syncytical virus)
infection in children. They augment their marketing and calling efforts
through an alliance with Abbott Laboratories (NYSE: ABT) where Abbott
calls on practicing pediatricians."
MedImmune has a product in human clinical trials for the prevention of
genital warts, Drake states, "Genital warts are the causal agent of
cervical cancer. This is a product partnered with SmithKline Beecham
(NYSE: SBH) that has tremendous opportunities for changing the course
of a disease that afflicts and kills thousands of women around the
world each year."
One of the small cap stocks that we recently upgraded to a strong buy
is Corixa (Nasdaq: CRXA), Drake declares, "It is a research-based
biotechnology company focusing on the discovery and early clinical
development of proprietary vaccines as well as other immuno-therapeutic
products that induce specific and potent pathogen or tumor-reactive
T-cell responses for the prevention and treatment of cancer and other
infectious diseases and even autoimmune diseases."
In a very low market cap category, we do have a recommendation of a
company called Collateral Therapeutics (Nasdaq: CLTX). Collateral
Therapeutics is focused on the development and commercialization of
nonsurgical gene therapy products for the treatment of cardiovascular
disease. The company's revolutionary product, which is called GenerX,
is in clinical trials to grow new blood vessels in patients with
coronary artery disease."
I would be remiss if I didn't mention IDEXX Laboratories (Nasdaq:
IDXX), Drake states, "IDEXX Labs is a global leader in the development
of diagnostic products and services for applications in the animal
health industry and also in the area of food and water quality. This
is, if you will, my "GARP" (growth at reasonable price) investment in
biotechnology."
2) Biotechnology Stocks - Detailed Analyst Interview (4,200 words),
Kurt von Emster, Vice-President and Portfolio Manager with Franklin
Advisers investigates faster FDA approvals, joint ventures, new
products, discovery-stage and genomics companies and shares his
biotechnology stock recommendations.
What I expect to see a lot of are technology acquisitions, von Emster
forecasts, "We can expect to see more acquisitions like Gilead's
(Nasdaq: GILD) purchase of NeXstar, a small company with existing sales
and fairly good products to help supplement their earnings growth.
Inhale Therapeutics (Nasdaq: INHL) acquired technology from Alliance
Pharmaceutical (Nasdaq: ALLP). They acquired a division of Alliance and
all the patents and technologies associated with a particular drug
delivery aspect that they were interested in. Alliance is a company
working on human therapeutics and blood substitutes. But they came
across some interesting technology that they really couldn't utilize
internally, so they sold it off to a company that would be more fit to
utilize it."
From the valuations we're seeing right now with Amgen and Biogen both
at new highs, von Emster states, "We are anticipating that more of the
mid-cap names in the group may outperform, only because of the
valuation discrepancies we see. One of the interesting names we got
involved with is Chemdex (Nasdaq: CMDX), a company that sells biotech
products to researchers through the Internet. This company presents an
interesting way to have Internet exposure in a biotech fund."
One other company we'd probably highlight, from a product standpoint,
is QLT PhotoTherapeutics (Nasdaq: QLTI), von Emster declares, "It's a
Canadian company that's developed a drug and laser combination. The
drug is delivered usually to elderly patients who are losing their
eyesight due to the degeneration of the blood vessels in the retina. A
laser light is then shined into their eyes after you've delivered the
drug."
This issue also includes:
3) An in-depth roundtable forum on the Biotechnology Industry (13,700+
words), four leading analysts: Margaret Malloy of Hambrecht & Quist,
Jay Silverman of Robertson Stephens, William Slattery of Amerindo
Investment Advisors and Elise Wang of PaineWebber examine the
unprecedented amount of biotech M&A activity, reimbursement issues,
clinical trial safety concerns, novel therapies, cancer treatments,
genomics and drug development, blockbuster and overhyped drugs, second
generation drugs, valuation factors, late-stage product plays, emerging
companies that are discovery stage plays and advice for sector
investors, including top stock recommendations.
For more details see twst.com.
4) The TWST confidential Off The Record survey of management
performance at 15 Biotechnology firms asked market insiders about the
ability of management teams to create shareholder value. In a sector
where many management teams are criticized for failing to deliver on
the hype, some CEOs receive top marks for their efforts.
Firms reviewed:
Alkermes, Amgen, Biogen, Cephalon, Chiron, Creative Biomolecules, CV
Therapeutics, Genetech, Genzyme, Gilead Sciences, Imclone, Immunex,
MedImmune, Myriad Genetics, PE Biosystems and Transkaryotic Therapies.
For more details see twst.com.
5) Sixteen extensive (average 2,500 words) CEO Interviews with top
management from the following sector firms discussing their future
plans and outlook for their firm and the Biotechnology sector:
Abgenix, Alta Gentics, Biogen, BioTime, Commonwealth Biotechnologies,
Corvas International, Genzyme Transgenics, Interleukin Genetics, Isis
Pharmaceuticals, LifeCell Corp., North American Scientific, Novagen
Ltd., Targeted Genetics, Texas Biotechnology, Renal Care Group and
Xenometrix.
To obtain a copy of this insightful 112-page report, see
twst.com or call 212-952-7433. This special section
is also included in the Healthcare Sector of TWST Online at
twst.com.
The Wall Street Transcript is a premier weekly investment publication
interviewing market professionals for serious investors for over 35
years. Available at twst.com. TWST Online provides free
Interview excerpts. For highlights, recent recommendations by analysts
and money managers and biotech news, visit
twst.com.
The Wall Street Transcript does not endorse the views of any
interviewee nor does it make stock recommendations.
SOURCE The Wall Street Transcript
(C) 1999 PR Newswire. All rights reserved.
prnewswire.com
CONTACT: Peter McLaughlin of The Wall Street Transcript, 212-952-7433
WEB PAGE: twst.com
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