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Biotech / Medical : OSI Pharmaceuticals (OSIP) - formerly Oncogene -- Ignore unavailable to you. Want to Upgrade?

To: tom pope who wrote (155)	8/19/2002 10:49:45 PM
From: tuck	Read Replies (1) \| Respond to of 447

Methinks the Yahoo! profile is in need of updating. OSI barely mentions diabetes in the 10-Q, which is worth a read. Some interesting snips: >>The assets purchased by the Company included: (a) a pipeline of three clinical oncology candidates, (b) certain related intellectual property, and (c) rights to Gilead's leased facilities located in Boulder, Colorado, as well as leasehold improvements and certain fixed assets. In connection with the acquisition, the Company retained 117 Gilead employees representing expertise in clinical operations, regulatory affairs, toxicology and in vivo pharmacology.<< >>The acquired in-process R&D was valued at $130.2 million and expensed at the acquisition date in the consolidated statement of operations for the three months ended December 31, 2001. The portion of the purchase price assigned to the acquired in-process R&D was allocated to the following three clinical oncology candidates: OSI-211 (formerly NX211), a liposomal lurtotecan ($19.9 million), OSI-7904L (formerly GS7904L), a liposomal thymidylate ($13.4 million) and OSI-7836 (formerly GS7836), a Gemzar(R) analog ($96.9 million).<< >>The value of the acquired in-process R&D was determined by estimating the projected net cash flows related to products under development, based upon the future revenues to be earned upon commercialization of such products. In determining the value of the in-process R&D, the assumed commercialization dates for these products ranged from 2004 to 2008.<< >>We anticipate our operating cash burn will approximate $115 to $130 million for the current fiscal year as we continue to fulfill our obligations on the Tarceva(TM) development program and continue our ongoing research and development operations. Although we believe that we have sufficient cash for operations for the next few years, if Tarceva(TM) is delayed or rejected by the Food and Drug Administration, such an event could have an adverse impact on our liquidity position, assuming our current cash burn.<< Note the converts issued earlier this year mature in 2009, after the expected commercialization of Tarceva and all of the Gilead products. Interest is $8 million per year, and the conversion price is $50. At least they hadn't hired the sales force yet. Cheers, Tuck