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Biotech / Medical : Regeneron Pharmaceuticals -- Ignore unavailable to you. Want to Upgrade?

To: Miljenko Zuanic who wrote (334)	12/11/1999 9:12:00 PM
From: RWReeves	Read Replies (1) \| Respond to of 3557

MZ picks are well known for efficacy so I don't want to be in the control group<g>. However, Market seems unsure because of stumbles and long duration burn without payoff. This has been formula for low priced acquisition death for many bts. Building a plant is imo not the greatest idea- there are many toll manufacturers with so much excess capacity they will almost make your first lot for free. Very expensive to build and maintain plant when all you need are clinical size lots.WFI system alone can run a million bucks. The rule big pharma taught me is that mature manufacturing cost is 2% of sales for synthesis based drugs, a bit more for fermented, so not much value of vertical integration in that area unless your contract manufacturer is not to good, (say GLIA might agree or you rely a lot on trade secret process protection. I wonder if your experience is different. My beloved Cetus started down the road to financial suicide by spending 60 million they could not afford on a plant. Basic research not something investment dollars are eager to fund, they belive it belongs in academia; demanded returns of 30% can't afford to wait too long for payoff. This is obviously why our beloved bts seem cheap to pharma compared to risk adjusted spend. All that said, nice chart; looks like somebody agrees with you in a big way, with some few who don't believe. RWR