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Biotech / Medical : MGI Pharma MOGN New patents, anti cancer -- Ignore unavailable to you. Want to Upgrade?

To: Icebrg who wrote (1602)	10/21/2005 6:52:22 AM
From: Icebrg	Read Replies (2) \| Respond to of 1826

MGI PHARMA shares drop more than 10 pct. OCT. 20 2:26 P.M. ET Shares of drug maker MGI PHARMA Inc. dipped more than 10 percent Thursday as analysts warned that sales are building more slowly than expected and higher spending will depress future results. The company, which recently bought Guilford Pharmaceuticals Inc., reported a third-quarter profit on Wednesday in line with Street estimates as revenue rose 22 percent to $67.9 million -- below Wall Street forecasts for $71.7 million. Despite the in-line earnings, Robert W. Baird & Co. analyst Christopher Raymond called it a "disappointing quarter with potential longer-term implications" and downgraded the stock to "Neutral" from "Outperform." "New implicit expense guidance and market signals indicate to us that our revenue and (earnings per share) estimates for 2006 and beyond were too aggressive," Raymond wrote in a note to clients. He noted the company expects 2006 operating expenses about $20 million higher than his earlier estimates and said sales of its key drug -- a treatment for chemotherapy-induced nausea called Aloxi -- came in at the low end of its already reduced guidance for the drug. The afternoon trading on the Nasdaq. RBC Capital Markets lowered its estimate for year-end revenue, reducing its expectations for Aloxi sales and licensing revenue, but kept its "Outperform" rating on the stock and a $35 target price. "We think the clinical and pharmacologic benefits of Aloxi are likely to continue to help MGI's efforts to expand market share," analyst David Bouchey wrote in a report. Merrill Lynch's Eric Ende said the higher expense guidance suggests significant launch expenses for Dacogen, a cancer treatment in the final stages of FDA review, and substantial research spending for products in clinical trials. Ende lowered his 2005 and 2006 estimates but maintained a "Buy" rating on the stock and a $28 target price. Prudential's Jason Zhang also lowered his outlook for upcoming years, noting the higher expenses. Zhang lowered his MGI target price to $33 from $36 previously and kept his "Overweight" rating on the stock. MGI earned $12.9 million, or 17 cents per share, in the third quarter. As of Tuesday, the average analysts estimate on Thomson Financial was for a slightly higher 18 cents per share, but that dropped to 17 cents -- matching the results -- on Wednesday afternoon. businessweek.com

To: Icebrg who wrote (1602)	12/17/2005 4:29:34 AM
From: Icebrg	Read Replies (2) \| Respond to of 1826

MGI Pharma "neutral," target price reduced [The Baird people are following the share price down. Wouldn't it be nicer if they were ahead of the curve?]. Friday, December 16, 2005 11:55:13 AM ET Robert W. Baird NEW YORK, December 16 (newratings.com) - Analysts at Robert W Baird reiterate their "neutral" rating on MGI Pharma Inc (MOGN.NAS), while reducing their estimates for the company. The target price has been reduced from $25 to $20. In a research note published this morning, the analysts mention that the FDA has classified the company’s Dacogen resubmission as a Class 2 resubmission, along with setting the PDUFA date to May 15, 2006. The revenue estimate for FY06 has been reduced from $39 million to $16.6 million to reflect the impact of the PDUFA date set by the FDA, which is later than expected, the analysts say. The EPS estimates for 2005, 2006, 2007 and 2008 have been reduced from $0.22 to $0.20, from $0.29 to $0.07, from $0.95 to $0.69 and from $1.97 to $1.64, respectively.