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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: Doug R who wrote (40282)	12/9/2001 11:17:55 PM
From: Candle stick	Respond to of 79279

Doug I think BSDM could very well be next. Here is why: The 2 most important articles relating to BSDM are the following (bear in mind that BSDM owns 30% of TherMatrx) healthnetwork.com.au New Treatment for Prostate Enlargement Enlargement of the prostate gland is perhaps the commonest debilitating and potentially fatal condition experienced by men, particularly as they get older. Benign enlargement is far more common than that involving cancerous growth, and it is estimated that over 50% of all men will experience the symptoms of benign prostatic hyperplasia (BPH) by the age of 60, which increases to about 90% by the time they are between 70 & 80. BPH is neither malignant nor inflammatory, and its symptoms include urinary frequency, incontinence, nocturia (excessive voluntary or involuntary urination at night), urgency, and a slow urination stream. Treatment is aimed at increasing the diameter of the urethra by warmth, medication, balloon dilation, or in extreme cases, surgery. Now, in an advance that promises lasting and effective treatment, Thermatrx Inc., a Chicago based medical development company, been given approval for the use of their technology in doctor’s surgeries in the U.S. Using microwave technology already developed for the treatment of cancer, they conducted a three-year, 200 patient multi-centre clinical study which demonstrated highly significant improvements. The procedure is quick, relatively painless and non-invasive. It requires no hospital visit, and appears to have lasting benefit. The focusable microwaves are applied to the troublesome area, warming and dilating the urethra without causing damage to the tissue. The Health finance administration, the American authority charged with setting and monitoring medical procedure costs, has granted considerable reimbursement toward the cost of the machine to doctors taking up the option of providing this treatment. It is understood application for approval for the use of this technology will soon be made in Australia and New Zealand. news.cnet.com. CE Unterberg, Towbin Comments on ULGX 05/29/01 07:50 AM Source: C.E. Unterberg Towbin San Francisco, CA, May 29, 2001, 7:50 PST Visit the CNET Brokerage Center for daily reports from the top Wall Street analysts. Urologix Symbol Rating Price Mkt. Cap. 2001E 2002E Pr. Target ULGX Neutral $27.79 $363 $(0.39) $0.13 $25 HEADLINE: Competition Looming? - Downgrading to Neutral ¨ Thermatrx: a gorilla or vaporware? Thermatrx (private) has a new microwave device for treating BPH currently under review at the FDA. From limited data it appears to be more effective, safer and cheaper than the products from Urologix. The microwave energy is focused more superficially (periurethral) than other manufacturers and causes a "surgical alpha blockade" rather than just ablating and debulking prostate tissue. Because it uses lower energy, cooling devices for the urethra and rectum are not necessary, which should result in a lower cost of goods than Urologix's devices. ¨ BPH market is untapped. We estimate the BPH market for minimally invasive procedures at 380,000 cases in the U.S. each year. We expect this market to expand to 650,000 cases/year as more physicians bring the devices into their practices and consumer awareness grows. At its peak the market could exceed one million cases each year if patients who are in the watchful waiting category are tapped. Clearly there is room in such a large market for several competitors. However, if there are any "hiccups" along the way, (i.e. sales slowing temporarily while a new competitor enters the market) Wall Street can be quite myopic and unforgiving. ¨ We our downgrading Urologix from a Buy rating to Neutral, based on its current market valuation of $363 million and the potential of new competition to limit market penetration. Urologix's market capitalization has increased impressively under capable management, more than tripling over the last six months. However, we are concerned that new competition may stunt growth and are waiting for additional data on these competitors before recommending buying additional shares of Urologix. If these competitors aren't significant threats then Urologix has the potential to double in value. As Urologix expands its installed base then it creates a barrier to entry but with only 200 control units in place it won't be able to block competition yet.