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

To: Biomaven who wrote (8824)	8/11/2003 9:13:33 PM
From: JMarcus	Respond to of 52153

<EPIX> Ron Garren still loves the stock, notwithstanding the recent sell-off: <<Epix Medical (EPIX) is another company with a twist on current technology that conveys a meaningful advantage. See archives for detailed notes. The company makes an MRI gadolinium contrast agent (MS-325) that binds albumin and remains within the blood vessels for a prolonged time. This makes an ideal contrast agent for visualizing the vascular system. It is relatively non-invasive when compared to arteriography and it’s not likely to cause renal failure even in patients with diseased kidneys (those trials are yet to be done). EPIX is partnered with the major player in the field and it seems likely that they can expand the existing market with this new technology. The real limitation may be magnet time in MRI machines. Trials for coronary visualization are planned for ’04. The stock tanked this week when a secondary was priced at $15/share. The company raised about $75 million if you include over-allotments (assuming fully subscribed with purchase of over-allotment) and with existing cash they now have a hoard of about $100 million. They plan to file an NDA this year. If this agent works as well for coronary artery visualization the market could just be huge. Many of the major MRI machine companies are working on the gating and software problems that need to be solved for the coronary system. Epix splits US sales 50/50 and gets a royalty outside the US of 15-30%. Most of the revenue would fall to EPIX’s bottom-line (the ongoing burn rate should be minimal). That could easily make this a 1 billion dollar company. The company’s value is now about $330 million including the recent funding. I like Epix at the $15/share level and I also own it personally.>> Marc