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Biotech / Medical : Millennium Pharmaceuticals, Inc. (MLNM) -- Ignore unavailable to you. Want to Upgrade?

To: tom pope who wrote (2477)	7/29/2005 1:00:01 AM
From: software salesperson	Read Replies (2) \| Respond to of 3044

7/28/05 cc notes 1. 2nd quarter update V sales up 26% vs. last year; V user demand = 50 m, a 14% q over q increase; r&d expense down 17%; V market share: 3rd line - - maintaining 40-50%; 2nd line - - grew to 30-40%; 1st line- - grew to 5%; V inventory draw down of 1 week- - 1 week left in channel; V 2005 sales to come from: (i) 2nd line growth from apex data publication (ii) moderate 1st line growth (iii) relapsed mantle cell growth based on Thomson compendia listings (iv) 3.7% price increase in july I patent expires in 2014; mlnm will still receive royalties after patent expiration Confirming 2005 non-gaap guidance for V revenue, net loss and cash Starting in 4th q, 15% reduction in r&d/sga expense Cash 6/30/05 = 590 m 2. r&d update V - - initiated 3rd front line mm trial- - V+ dex vs. vad Peak BAC trial Event re-treatment trial Nejm( superior in survival) and british journal hematology (highest response rate 88-95%)publications indicate that earlier use may improve overall response outcome V + rituximab at asco, lugano - - weekly V was better overall; goal is to have enough data by year end to make decisions re: next steps V in stroke- - in animal model, V reduces inflammation and increases blood flow; V has potential for both ischemic and thrombotic strokes 02 - - statistically significant improvement in UC; selective inhibition to GI tract; working on new cell line; P 1 bridging study in 2006 in preparation for pivotal trial 518 - -front line AML as single agent and in combo with standard chemo; agreement with CTEP, a branch of NCI, to explore potential of 518 as single agent and in combo in glioblastoma, prostate cancer and renal cell carcinoma; this approach is similar to what was done with V 1202 - - RA ( data in 2006), P 2a MS ( data in 2006), atherosclerosis and scleroderma Aventis research portion extended for 90 days while renegotiating 2005 milestones: trial initiations: V + alimta vs. alimta in relapsed nsclc V + tarceva vs. tarceva in relapsed nsclc 8054 518 - - P 1 /2 in frontline AML in combo with standard chemo 1202 - - P 2a in atherosclerosis next steps: V - - prostate, ovarian, nhl 2704 - - P 1 /2 to increase therapeutic window; data by year end to make next step decisions 3. new ceo action plan (i) get to know employees and analysts (ii) analyst road shows in august (iii) formulate strategic plan and discuss at analyst day in October (iv) firm up V commercial organization and clarify product message (v) firm up pipeline advances (vi) strategic business relationships- - in-licensing, out-licensing, collaborations (vii) increase productivity and efficiency (viii) focus on fiscal discipline (ix) new goal - - leader in company’s key focus areas 4. q&a (i) when will we see V solid tumor data? - -in lung cancer, V+ tarceva and alimta; BAC trial ongoing; prostate and ovarian; P 2s with SWOG in frontline lung cancer V in combo; mantle cell and follicular lymphoma (ii) asco data on nsclc in 2006? - - no direct answer (iii) explain V and mantle cell reimbursements, compendia listings, data from P 2 and registration strategy? - - received Thomson National Compendia; should have data by year end; potential registration strategy (iv) is inventory of V really 1 week? - - yes; best level of channel transparency yet (v) how would you prioritize basic science, cardiology and oncology? - - oncology, inflammation and spillover of inflammation to cardiovascular, e.g. atherosclerosis; main interest is in cancer and inflammation pathways (vi) what is the design of V+ tarceva and V + alimta trials? - - similar scope to P 2 in that area (vii) why was there an increase in interest income? - - selling transform stake (viii) timing of nhl compendia listings? - - have obtained mantle cell listing; no comment on follicular listing (ix) off-label use for mantle cell? - - yes, but only anecdotally (x) strategic alliance revenue line item: please comment on its impact on sustaining profitability over the next 3-4 years? - - will be more deals ex-US a la jnj (xi) do you need more r&d restructuring? - - emphasis is on growing V revenue, growing pipeline, looking at overall company structure and fiscal discipline (xii) do you need to make further cuts to make 2006 profit goal? - - no direct answer (xiii) is an in-licensing deal necessary to make 2006 guidance? - - not necessary ( I think the analyst meant “collaboration”) (xiv) lung cancer data has not looked good. is allocation of resources reasonable? - - single rate of response is similar to alimta, tarceva and taxotere; also putting resources in frontline mm, nhl, mantle cell, diffuse lymphomas, SWOG frontline (xv) is BAC trial for egfr failures? - - yes; collecting tumor samples for pharmacogenomic analyses 5. impressions the new ceo sounds ok, though talks, at this point, about motherhood and apple pie; she’s got 3 months before analyst day and next quarter’s cc to come up with some detailed answers and hard choices regarding expense reduction and pipeline prioritization; they need to take a fresh look at pipeline from outside of r&d fwiw, here’s what I expect to see in the intermediate term ( within 6-9 months): (i) get a new head of r&d (ii) get a vp sales (iii) if vision has changed from being a top 3-5 biopharmaceutical company to being a “leader in company’s key focus areas,” then there’s no reason to continue to spend at the same rate. more cuts are coming. (iv) sounds like there will be a renegotiated aventis deal, probably with upfront $, as well as another deal (v) there’s a greater chance that they will acquire or in-license than be acquired (vi) re: collaborations, don’t think 2704 will be involved; likely candidates are 1202 and 518, though it would be nice if any of the genomics-based discovery molecules were involved sales