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Biotech / Medical : Celera Genomics (CRA) -- Ignore unavailable to you. Want to Upgrade?

To: omegaman who wrote (17)	11/30/1999 6:34:00 PM
From: Mark Fowler	Respond to of 746

"CELERA GENOMICS - MORGAN STANLEY RESEARCH SYNOPSIS Some highlights from a recent Morgan Stanley Dean Witter research report. We at The Bull Market Report believe Celera to be one of the most exciting biotechnology stocks that we follow. Celera Genomics is a tracking stock intended to reflect the performance of the Celera Genomics Group business of the Connecticut-based PE Corporation. Celera is a development-stage bioinformatics company that is engaged in the generation, sale, and support of genomic information. It will also provide related information management and analysis software; discovery, validation, and licensing of proprietary gene products, genetic markets, and information concerning genetic variability; and related consulting and contract research and development services. The company intends to make its information products available to pharmaceutical and other healthcare participants on a subscription and custom services basis. Valuation: We rate CRA Outperform. Our target price is currently under review. We believe that as the company demonstrates its tremendous data-generating capacity through the sequencing of various genomes, CRA should begin to trade in line with its peers. Key Investment Positives -- Technology Advantage. Because of its relationship with PE Biosystems (PEB), Celera will have priority access to 300 next-generation 3700 DNA sequencers, providing unprecedented DNA sequencing capacity. The facility, which should be at full capacity in late 1999, is expected to have the ability to sequence over 100 million base pairs of DNA daily, which would significantly exceed the worldwide capacity in operation today. -- Running Start. Celera has entered into early-access agreements with Amgen, Pharmacia & Upjohn, and Novartis that will provide approximately $5 million in annual database revenues per partner for five years. -- Viable Business Strategy. While we do not anticipate more than one or two additional subscribers during the buildout mode in 1999, we believe there should be a significant acceleration in both subscription numbers and revenues in 2000. We expect product offerings to expand to include gene variation data and genomes of mouse, rat, rice, wheat, and corn. We estimate database revenue subscriptions should approach $450 million in 2004. Key Investment Risks -- Uncertain small-cap market environment -- Politically charged genomics environment -- Competition. The Human Genome Project appears to overlap with a piece of Celera's sequencing strategy, and the Pharmaceutical SNP Consortium appears to compete with Celera's polymorphism strategy. -- Early stage of development; potential for delays. We regard 1999 as an important year for Celera in building and validating its DNA sequencing and bioinformatics infrastructure. For investors, it will be a period of building and maintaining credibility through setting and meeting realistic timelines and goals." The Bull Market Report - Volume 24, #19 bull-market.com In at 42@.