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

To: Miljenko Zuanic who wrote (597)	11/26/2001 8:15:59 PM
From: Miljenko Zuanic	Read Replies (1) \| Respond to of 3559

Dear and old friend, KvE in Forbes: Monday November 26, 9:00 am Eastern Time Forbes.com Drugs For Treating Obesity By Megan Mulligan More than 60% of Americans are either overweight or obese, according to the Centers for Disease Control's most recent National Health and Nutrition Examination Survey, conducted in 1999. Those numbers are rising--between 1980 and 1999 the percentage of overweight adults (ages 20 to 74) rose two percentage points--from 33% to 35% of the population. During that period, the percentage of obese, or excessively overweight, adults nearly doubled, rising from 15% to 27% of the population. ADVERTISEMENT Although most people will never attain the trim figure of a super-model, excess weight is linked to a number of health problems, such as diabetes, high cholesterol levels, heart disease and certain cancers. Where exercise and diet fail to do the trick, pharmaceutical companies offer pills to help people bring their weight problems under control. A good weight-control drug has the potential to be a blockbuster. For example, Lipitor, Pfizer 's drug for controlling weight and cholesterol, generates $5 billion in annual sales. Two other approved drugs for the treatment of obesity are Meridia, produced by Abbott Laboratories ' German subsidiary Knoll Pharmaceutical, and Xenical from Roche 's Hoffman La Roche division. Both are heavily marketed in the U.S. and are top sellers for their respective companies. The pharmaceutical industry is actively pursuing new weight-control formulations using gene-based therapies. Kurt von Emster, portfolio manager for the MPM BioEquities Fund and a general partner in MPM Capital, points to Regeneron Pharmaceuticals , whose lead candidate for Food and Drug Administration approval, Axokine, is in phase three trials for the treatment of both obesity and type 2 diabetes. Von Emster thinks that Axokine could generate $1 billion in annual revenue. Axokine is a second-generation ciliary neurotrophic factor (CNTF), which acts in the brain area that controls body weight. Over the latest 12 months, Regeneron lost $56.3 million on revenue of $36.7 million. Most of the Tarrytown, N.Y.-based firm's revenue comes from research agreements with big pharmaceutical companies like Merck . Regeneron still has a $450 million cash hoard, which should be more than adequate to see the company through the testing process for Axokine. "Regeneron is an overlooked gem, with some great science and an experienced management team," says von Emster. Neurocrine Biosciences is also searching for a reliable obesity treatment. The firm's most promising remedy is Melanocortin Agonist, which targets the melanocortin receptors of the brain. They are involved in the body's endocrine, autonomic, and central nervous systems and regulate appetite, body weight, and insulin secretion. This compound may also be of value for treating anorexia nervosa and diabetes. Eli Lilly is the firm's partner in the project. Shares of Neurocrine Biosciences are up 37% year-to-date, despite negative earnings forecasts for this year and next. Neurocrine has a market value of $1.2 billion--one of the largest of the companies listed in the table below--even though the latest 12-month sales were just $33.5 million. The table below lists five small biotechnology companies that are developing drugs to treat weight and obesity problems. Success with even one drug could secure a company's future and lead to a significantly higher share price. Just remember that this is a risky business with no guarantee of success. Biotech companies developing drugs to treat metabolic disorders Prices as of Nov. 20. NA: Not available. Sources: Bloomberg Financial Services; FT Interactive Data and Market Guide via Factset Research Systems. Company Price 52-Week Price Range Latest 12-Month Sales ($mil) Market Value ($mil) Esperion Therapeutics $7.10 $17-$4 NA 203 Exelis 14.80 23-6 30 723 Lexicon Genetics 8.97 17-5 15 478 Neurocrine Biosciences 45.48 46-14 34 1,197 Regeneron 27.36 42-20 37 1,218