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To: Johnny Canuck who wrote (39732)	6/13/2003 4:23:49 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69978

14:47 ET Generic Drug Buzz : When a politician has healthcare reform as a top priority, it usually means one of two things: either he/she is fresh off an election victory or he/she is about to begin a campaign. As fate would have it, next year is an election year that is replete with a presidential race, so it only makes sense that politicians are speaking with increasing regularity about the importance of getting healthcare costs under control for all Americans with a nod toward senior citizens. Today, the president has discussed a number of initiatives designed to get generic drugs to market in quicker fashion. In particular, an emphasis has been placed on closing the loopholes used by manufacturers of brand-name drugs to delay the introduction of generic products. Additionally, there will be a drive to increase the funding provided to the Office of Generic Drugs so that the review process is more efficient and speedier. More detail on the issues at hand can be found in today's Wall Street Journal. In the meantime, it hasn't been lost on the market that these initiatives portend good things for the generic drug companies as they comprise one of the market's best-performing groups today. How this situation ultimately plays out remains to be seen, but with an election around the corner, you can bet that most of the talk in the months ahead will favor initiatives aimed at lowering drug costs for Americans. One direct way of doing that, of course, is to back plans that will expedite the approval of the inherently less expensive generic drugs. The following table provides a snapshot of some of the generic players. Company Current Price Est. P/E P/S (ttm) Teva Pharmaceutical (TEVA) 54.83 26.9x 5.28x Mylan Labs (MYL) 33.38 18.6x 4.84x Barr Labs (BRL) 63.91 23.6x 5.21x Taro Pharmaceutical (TARO) 56.16 26.0x 6.82x Able Labs (ABRX) 22.30 31.3x 4.97x Hi-Tech Pharmacal (HITK) 42.75 N/A 6.91x IVAX Corp. (IVX) 20.20 27.7x 3.17x Pharmaceutical Resources (PRX) 46.95 18.2x 3.83x Biovail Corp. (BVF) 49.00 21.9x 8.75x Eon Labs (ELAB) 33.50 24.8x 5.55 In closing, don't be surprised if the stocks of generic drug companies exhibit better relative strength as the 2004 campaign heats up. By the same token, companies like Merck (MRK), Pfizer (PFE), and Eli Lilly (LLY) should find material multiple expansion harder to come by amid the escalating talk of controlling prescription drug costs and curbing the ability of brand-name drug manufacturers to delay the introduction of generic products. That is an issue Briefing.com highlighted in February when we elected to maintain a Market Performer rating on the Drug Sector. -- Patrick J. O'Hare, Briefing.com

To: Johnny Canuck who wrote (39732)	6/13/2003 4:23:49 AM
From: Johnny Canuck	Respond to of 69978

14:47 ET Generic Drug Buzz : When a politician has healthcare reform as a top priority, it usually means one of two things: either he/she is fresh off an election victory or he/she is about to begin a campaign. As fate would have it, next year is an election year that is replete with a presidential race, so it only makes sense that politicians are speaking with increasing regularity about the importance of getting healthcare costs under control for all Americans with a nod toward senior citizens. Today, the president has discussed a number of initiatives designed to get generic drugs to market in quicker fashion. In particular, an emphasis has been placed on closing the loopholes used by manufacturers of brand-name drugs to delay the introduction of generic products. Additionally, there will be a drive to increase the funding provided to the Office of Generic Drugs so that the review process is more efficient and speedier. More detail on the issues at hand can be found in today's Wall Street Journal. In the meantime, it hasn't been lost on the market that these initiatives portend good things for the generic drug companies as they comprise one of the market's best-performing groups today. How this situation ultimately plays out remains to be seen, but with an election around the corner, you can bet that most of the talk in the months ahead will favor initiatives aimed at lowering drug costs for Americans. One direct way of doing that, of course, is to back plans that will expedite the approval of the inherently less expensive generic drugs. The following table provides a snapshot of some of the generic players. Company Current Price Est. P/E P/S (ttm) Teva Pharmaceutical (TEVA) 54.83 26.9x 5.28x Mylan Labs (MYL) 33.38 18.6x 4.84x Barr Labs (BRL) 63.91 23.6x 5.21x Taro Pharmaceutical (TARO) 56.16 26.0x 6.82x Able Labs (ABRX) 22.30 31.3x 4.97x Hi-Tech Pharmacal (HITK) 42.75 N/A 6.91x IVAX Corp. (IVX) 20.20 27.7x 3.17x Pharmaceutical Resources (PRX) 46.95 18.2x 3.83x Biovail Corp. (BVF) 49.00 21.9x 8.75x Eon Labs (ELAB) 33.50 24.8x 5.55 In closing, don't be surprised if the stocks of generic drug companies exhibit better relative strength as the 2004 campaign heats up. By the same token, companies like Merck (MRK), Pfizer (PFE), and Eli Lilly (LLY) should find material multiple expansion harder to come by amid the escalating talk of controlling prescription drug costs and curbing the ability of brand-name drug manufacturers to delay the introduction of generic products. That is an issue Briefing.com highlighted in February when we elected to maintain a Market Performer rating on the Drug Sector. -- Patrick J. O'Hare, Briefing.com