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

To: JMarcus who wrote (1139)	5/29/2000 7:42:00 AM
From: david james	Respond to of 52153

Nice Plug for Cell Genesys, but isn't Faraz Navqi the fund manager for the Dresdner fund (the #1 rated biotech fund). biz.yahoo.com Here is a Fox news article about Gene therapy - and another plug for Cell Genesys. foxmarketwire.com The Business of Gene Therapy By David Armstrong NEW YORK ? Gene therapy is the Holy Grail of biotechnology. The ability to replace defective genes in the human body will have a profound impact on health care, promising cures for cystic fibrosis, vaccines for cancer and potential treatments for almost all of the genetic disorders that afflict humans. So it makes sense that some investors ? sifting through the sprawling and confusing biotech arena ? may find good deals in companies that concentrate solely in developing genetic therapies Commercial gene therapy products are not yet available. So revenues from gene therapy companies are often thin and based mostly on licensing agreements and deals with larger pharmaceutical companies. But observers predict that within the next five to 10 years, the first gene therapy products will be available, and the rewards for companies that make biotechnology drugs could be enormous. "It's almost unmeasurable," said Jeff Margolis, an analyst with Aurora Capital. "What is it worth to cure cystic fibrosis, hemophilia, diabetes? And cancer vaccines? It's incalculable what the value of that would be." Like the rest of the biotech sector, most gene therapy stocks have been in a steep plunge over the past two months. Some say that companies are trying to push the technology too far, too fast. The death last year of Jesse Gelsinger, a patient in gene therapy trials at the University of Pennsylvania, and subsequent revelations that some other researchers were failing to adequately report complications to the FDA, brought intense scrutiny to the fledgling industry. This week the Dept. of Health and Human Services proposed sweeping new oversight for clinical trials, including substantial monetary fines for researchers and institutions that violate established research protocols. "Investors need to be careful about how they proceed," said John McCamant, editor of the Medical Technology Stock Letter, an influential investment newsletter in the biotech field. "It takes some time, and there is some risk. It's a completely new paradigm. We preach to our investors very strong diversification in the sector." But, he added, the companies on top are poised to reap large rewards. That said, here are a few companies to keep an eye on as health care moves into the future. Cell Genesys The company recently reported promising progress with its GVAX cancer vaccine. The treatment is not a pure genetic therapy. Instead, it is a DNA-based vaccine, modifying tumor cells outside the body to induce an enhanced immune system response and then injecting the cells into the patient. Margolis rates Cell Genesys a strong buy on the basis of its GVAX vaccine. The company owns a 12 percent stake in Abgenix, a maker of antibodies for inflammatory and autoimmune disorders and a slew of strategic licensing agreements, all of which brought the company revenues of some $33.6 million last year. The stock, trading at a little over $17 a share, took a hefty plunge over the last two months. Margolis put a target price of $32.50 on the stock over the next twelve months.

To: JMarcus who wrote (1139)	5/29/2000 11:03:00 AM
From: david james	Respond to of 52153

Here's a link to the presentation informedinvestors.com Faraz Naqvi, M.D., Director, joined Dresdner RCM Global Investors in 1998 as an analyst in the health care group. He is co-manager of the Dresdner RCM Biotechnology Fund. He graduated from Colorado College, Phi Beta Kappa and Magna Cum Laude, with a degree in chemistry before studying economics as a Marshall Scholar at Cambridge University and receiving his M.D. from Harvard Medical School. Dr. Naqvi served as a consultant for McKinsey & Company and was a pharmaceutical/biotechnology analyst for NationsBanc Montgomery Securities. Dr. Naqvi was also previously an Associate in investment banking at Robertson, Stephens & Co. He is a member of the American Medical Association and Massachusetts Medical Society. ... And not a big surprise that Dresdner is the largest shareholder in Cell Genesys

To: JMarcus who wrote (1139)	5/29/2000 1:31:00 PM
From: Miljenko Zuanic	Read Replies (1) \| Respond to of 52153

It is interesting to me that all of this analysts (at Inf.Inv. forums) are looking and recommending genomic-mAb platforms bios. None of them are looking or recommending small molecules discovery platforms bios. Can they compete with pharma and bit them in their own ground? Yes, and those who do this will generate at least five time bigger return than gene-mAb players. Yes, high risk but definitely extreme high return for winner(s). Miljenko