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Biotech / Medical : Nuvelo (Nasdaq: NUVO) -- Ignore unavailable to you. Want to Upgrade?

To: Richaaard who wrote (92)	1/26/2000 8:55:00 AM
From: equityanalyst	Read Replies (1) \| Respond to of 286

Hi, Richaaard -- I don't know about their partnering potential, and it's just my observation, but it looks like HYSQ is in very good shape from a resource/cash standpoint. They've probably got about $25 million in cash and equivalents now (and no debt); a burn rate (R&D/SG&A) of only about $6 million per quarter; and they'll be receiving $60 million over the next 3 1/2 years per the American Cyanamid (American Home Products) gene discovery/development agreement, plus future royalties from the joint venture's product development. Moreover, other products/ventures that HYSQ is working on (e.g., Chiron, PE Corp., Kirin) should provide ongoing/escalating future revenue/royalty streams. The stock has obviously performed extremely well in recent months, but it looks like it still has a long way to go - assuming investors remain enamored with biotech/biopharmaceutical companies. Based on market capitalization-to-revenue ratios, HYSQ's stock ($41.25) would now be well above $100 per share if it were trading in line with the current average valuations of such companies as HGSI, AFFX and CRA. Of course, these aren't exactly comparable companies, and they have much greater Wall Street coverage and exposure than HYSQ at this time. But HYSQ is probably hitting the radar screens of an increasing number of analysts/investors given its recent news and stock action, and increased sponsorship of the stock seems likely in the not-too-distant future. I have a call into the company to try to get a better handle on current developments/prospects, and will post again when/if I hear something of substance. BTW, I'm long the stock and have followed the company on and off since it IPO'd in '97. Best regards, ea