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

To: Icebrg who wrote (8140)	4/14/2003 4:44:57 PM
From: Biomaven	Read Replies (1) \| Respond to of 52153

Erik, No breakdown given, so doubtless some was for psoriatic arthritis and some for straight psoriasis. Yes indeed it is possible in the US to be reimbursed for off-label use. Remember that a large portion of chemotherapy is in fact off-label. However, health insurers have more discretion when it comes to off-label reimbursement. Actimmune is a good example - no label for IPF, but about 70% of private insurers reimburse the $50k annual cost. Peter

To: Icebrg who wrote (8140)	4/18/2003 7:36:14 AM
From: Icebrg	Read Replies (2) \| Respond to of 52153

Akzo's Organon - a pharma for free? Lex: Akzo Nobel Published: Apr 16 2003 20:36 \| Last Updated: Apr 16 2003 20:36 Akzo Nobel faces the traditional conglomerate dilemma. Fusty old chemicals and coatings are performing moderately well but pharmaceuticals, the growth driver of the past decade, is struggling. Should it dispose of the former to achieve scale in the latter? Or would this simply make it more vulnerable to the vicissitudes of the pharmaceuticals market? Culturally, the company should have no difficulty in making the change - it got out of its traditional specialism, fibres, in 1999. But unlike Bayer, which has clung doggedly to its pharmaceuticals activities, Akzo has not come under strong pressure from investors for greater focus. Pharmaceuticals account for just over half of Akzo's operating profit - against 27 per cent of sales. But it has been hit by generic competition in the US for Remeron, its most successful drug. US sales of the anti-depressant fell 29 per cent in the first quarter of 2003, more than twice the rate of decline in Akzo's overall pharmaceuticals revenues. Other new drugs have struggled to build market share. The overall operating margin in pharmaceuticals fell to 15.9 per cent in the first 2003 quarter, down from 18 per cent in the preceding three months. Belatedly, Akzo is working on a cost-cutting for its pharmaceuticals division. But, after misjudging last year's downturn, management still does not convey a sense of urgency and it could be several quarters before the cut-backs take effect. In the broader market place, the euro's firmness against the dollar and rising pension costs have put pressure on earnings. Currencies cost €43m in the first quarter while pensions took a further €33m. Akzo is forecasting a 20 per cent fall in full-year net profit, following the first quarter's 30 per cent decline. The outlook is gloomy but the shares are not expensive. Put coatings on 0.7 times sales and chemicals on 0.8 times and pharmaceuticals is in the mix almost for free. Akzo needs to rethink its conglomerate structure to bring out that value.