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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: llackey who wrote (13981)	2/21/2002 9:03:41 AM
From: Bob Rudd	Respond to of 78661

<<I bought IVX back in Dec. I realized how important generics were when mom-in-law got excited that some drug she uses was finally going generic, so she could save money. Sort of Peter Lynch buy what you know approach>>Actually what's most interesting about IVX is that they have greatly expanded their proprietary program. The prospects for more generic opportunities are dimmed by lower profitability...even if they they're the first generic, they only get a 6 month window of exclusivity. Then competitors come in and compete away a chunk of the profit. It's really a specialty chemical business...not bad business but nowhere near the long margins of the proprietary. Currently Ivx is valued at the low end of the generic group, yet they have a substantial and growing proprietary business. The chairman owns a big chunk of the stock so interests are aligned.