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Biotech / Medical : Biotransplant(BTRN) -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Radley who wrote (1110)	11/12/2001 9:32:02 PM
From: Arthur Radley	Read Replies (1) \| Respond to of 1475

Lazard-part 1 by: soldier30 11/12/01 09:05 pm Msg: 1300 of 1302 09:11am EST 9-Nov-01 Lazard Freres & Co. LLC (Joel Sendek 212-632-1926) BTRN BTRN: 3Q Loss per Share of $(0.26) Excluding One-Time Charges; ASH Abstracts En Lazard Freres & Co. LLC BIOTECHNOLOGY: COMPANY UPDATE BioTransplant, Inc. (BTRN - $5.76) Recommendation: BUY Joel D. Sendek +1 212 632 1926 joel.sendek@lazard.com Brian M. Bizoza, M.D. +1 212 632 6195 brian.bizoza@lazard.com Eun K. Yang, Ph.D. +1 212 632 1890 eun.yang@lazard.com November 9, 2001 Price (11/8/01): $5.76 5-Yr. EPS Growth : NM 52-Wk Range: $18.50 - $2.97 S&P 500: 1118 Shares out, fd: 21.4 million L-T Debt/Cap Nil Market value: $123 million Cash (9/30/01) $18 million Loss per share 12/00 12/01E 12/01E 12/02E 12/02E (old) (new) (old) (new) Q1 $(0.23) $(0.20) $(0.20) Q2 $(0.21) $(0.29) $(0.29) Q3 $(0.21) $(0.02)E $(0.26) Q4 $(0.36) $(0.24)E $(0.25)E Year $(1.01) $(0.98)E $(0.96)E $(0.64)E $(0.56)E P/E Ratio P/E Relative to S&P 500 BTRN: 3Q Loss per Share of $(0.26) Excluding One-Time Charges; ASH Abstracts Encouraging ú BTRN reported a 3Q loss per share, excluding one-time charges, of $(0.26) vs. $(0.21), our estimate of $(0.02) and consensus of $(0.13) ú Both revenue and expenses were lower than our forecasts; adjusting estimates to reflect altered revenue recognition and decreased expense estimates ú Abstracts from the upcoming ASH meeting show encouraging data from studies with AlloMune; BTRN's partner, Gambro BCT, will be sponsoring a symposium at ASH ú BTRN reported a 3Q loss per share, excluding one-time charges, of $(0.26) vs. $(0.21), our estimate of $(0.02) and consensus of $(0.13). For 3Q, BTRN reported net loss of $5.0 million and a loss per share of $(0.26). BioTransplant reported revenue of $212,000 in 3Q, lower than our projected $5.0 million. During the quarter, BTRN received $6.0 million in milestone payments from Gambro, to whom BTRN licensed the European marketing rights to the Eligix cell separation system. We expected that milestone payments received from Gambro would be fully booked rather than amortized over several years, which is the case. Thus, the $6.0 million in milestone payments will be recognized over a period of seven years, or $857,143 per year. In 3Q, BTRN recognized $119,000 in revenue from the Gambro milestones. The remaining $93,000 in revenue is attributed to Eligix product sales prior to launch. In 3Q, BTRN recorded $2.8 million in one-time, non-cash charges related to the acquisition of Eligix. Including the charges, the 3Q loss was $6.8 million, or $(0.35) per share. ú Both revenue and expenses were lower than our forecasts; adjusting estimates to reflect altered revenue recognition and decreased expense estimates. R&D expense of $3.0 million was lower than our projected $3.7 million and SG&A expense of $1.3 million was slightly higher than our projected $0.9 million. BTRN also recorded an amortization charge of $1.0 million in 3Q related to the acquisition of Eligix, which was completed in May. We estimate that BTRN will record approximately $4 million per year in amortization charges over the next seven years to account for the Eligix acquisition. Based on the change in revenue recognition of the Gambro milestone payments and slightly lower R&D expense estimates, we are revising our estimates for 2001-2004. Our loss per share estimates (excluding one-time charges) narrow to $(0.96) from $(0.98) in 2001, to $(0.56) from $(0.64) in 2002,