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Biotech / Medical : Inverness Medical Innovation - IMA -- Ignore unavailable to you. Want to Upgrade?

To: PuddleGlum who wrote (20)	2/21/2003 1:41:18 AM
From: Crossy	Read Replies (1) \| Respond to of 40

PG, just listened to their CC. They expect certainly double digit growth on revenues with R&D at 7% of revenues and other expenditures at rather constant amounts. So bottom line should grow faster than the top line of course. The nice thing is their guidance - annual sale of at least $280m has some nice "hidden credentials". First of all they are going to de-emphasize royalties instead of products. They pruned and fiddled with their current portfolio of products, shedding some unprofitable lines. Then, no revenues from recently developed products were included. CEO Zwanzier talked about a market opportunity beyond $115m (or was it $150m - I could't really tell which number was right) on the recently developed new products that are going to hit the market in 2003 and 2004. OSTX sales were neither included. New product releases planned for 2003 (one new product) and 2004 (3 new products). Integration of OSTX could also be very nice to top and bottom line. Strategically it fits rather well to a "woman's health" centered enterprise. And the Whampole point-of-care channel could be making a big difference on the success of OSTX's product in the marketplace. EPS guidance for the full year of 2003 is 0.50-0.63 diluted range before special chrages. Remember the company acquires other firms with innovative CONVERTIBLE offerings. The way they are structured in IMA's case is usually a schrewd strategy to avoid the dilution associated with for-stock-mergers. A case in point was the Unipath acquisition financed by a convertible offering. They did however acquire OSTX in a-for stock transaction because the transaction volume was rather small and the dilution less than 15% rgrds CROSSY