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

To: Icebrg who wrote (2520)	10/27/2005 7:13:18 PM
From: software salesperson	Read Replies (5) \| Respond to of 3044

10/27/05 cc notes 1. 3rd q review 35% increase in V sales in US and 16% reduction in operating expenses vs. 3rd q 2004 has 4 molecules from discovery engine in early clinical development streamlined to 2 areas of clinical development, inflammation and oncology, and 1 area of discovery, oncology. In oncology, working on both large and small molecules and has expertise in biomarkers and personalized medicine has 7 molecules in pipeline wants to strengthen oncology discovery organization emphasis on strategic alliances to share costs and to commercialize globally is expanding oncology commercial organization with a 50% increase in the sales force and an expansion of the medical affairs group with sanofi, will continue to co-develop 3897, 3701 and 0415 - - all originated from mlnm’s discovery engine. 0415 is an ikk beta inhibitor pre-clinical candidate 30% operating expense reduction in 2006 vs. 2004 1500 people at end of 2004 --> 1100 at end of 2005 higher V sales guidance; lower non-gaap loss for 2005; 3.7% V price increase in July maintained 3rd line V share; increased 1st and 2nd line shares; modest sales in follicular and mantel cell lymphoma 4th q V sales increase will be smaller than 3rd q increase increased cash guidance to > 600 m from > 500 m; current cash = 655 m; 105 m convertible debt 2. r&d review inflammation - - 02, 1202, 3897, 3701,0415 1202- - this q, initiated 2 phase 2a proof of concept in ms and atherosclerosis 0415 - - will enter clinic next year oncology - - 518, 2704, 8054( from discovery engine) 518 - - this q, phase1 /2 in aml front line patients V - - front line mm, nhl, nsclc - - over 100 trials ongoing V ASH december data - - investigator-initiated front line mm and updated phase 3 apex survival data; there have been 50 V abstracts accepted 3. q & a (i) of the 403 m in r&d in 2004, how much was r and how much d? how will r and d look in 2006? - - historically, it’s been 30-35% discovery; in 2006, it will be 25% discovery; there will be a 30% reduction in 2006 across r&d and sg&a (ii) after these cutbacks, is the r&d/sg&a expense # a good run rate for the future? - - yes (iii) what is the collaborative revenue run rate? - - too variable; but this q, 10 m was a one time payment and 71 m was a one time inventory purchase (iv) breakdown of the 400 people to be laid off? - - 200 were I sales/marketing, 133 r&d, 66 sg&a (v) will you monetize r&d inflammation assets by partnering?- - yes, for earlier molecules; some of the inflammation molecules that are oncology-related will be worked on by oncology discovery (vi) what areas will you strengthen/emphasize in oncology discovery? - - medicinal chemistry and pharmacology (vii) headcount at end of 2006? - - 1100 (viii) comment on mrk’s psca antibody? How is psma different from psca? - - psma is the better target for prostate cancer; psca is earlier in the validation process (ix) V market share? - - 1st line - - 5% --> 9%; 2nd line - - 45%; 3rd line - - 40-50%; for 1st line, there is reimbursement in 9 states based on compendia listings; 39 more considering reimbursement (x) V maintenance use? - - retreatment study underway (xi) V inventory level? - - flat at 1 week (xii) what is your 518 approval strategy vis-à-vis the competition? - - front line in combo with standard induction therapy; more favorable PK profile vs. competitors; 518 also has potential in glioma, prostate and renal cancer (xiii) what is the average number of V cycles? - - want to increase the # of cycles; have seen increase in response over time; small sales force to be expanded; in apex trial, have seen 8 cycles or greater; the average is probably 5 cycles now (xiv) how many salespeople will you have after the increase? - - full deployment of just under 100 by 1/06 (xv) sales outlook in Europe? - - ask jnj (xvi) jnj royalty rate ex-US? (??) - - not disclosed; significant double digits (xvii) what has been the effect of the recent compendia listings for mantel cell? - - some (xviii) off label use of V? - - 9% share front line mm; most other in lymphoma; small amount in lung cancer (!) (xix) V front line strategy? when will we see data from mlnm’s front line trials? - - interim data from 1st transplant trial end 2006 (xx) what were the restructuring charges and how much is cash vs. non-cash? - - 60-90 m to be recognized between the end of 2005-2006; 30% non-cash (xxi) would non-gaap eps be roughly the same if you excluded and included all restructuring charges? - - approximately, yes (xxii) how much has the breakeven-non-gaap-in-2006-plan changed as a result of the restructuring? - - we can become breakeven in 2006 without a large deal containing partnership revenue (xxiii) is the # of V trials being streamlined? (??) - - no; update on analyst day (xxiv) how many V cycles are the detailed oncologists using? - - 6-8 cycles and beyond; some are using for maintenance; oncologists want to use the most powerful agent upfront (xxv) V in prostate and ovarian? Why was the GOG ovarian study suspended? - - the GOG ovarian study has just completed enrollment and we’re awaiting results sometime next year (xxvi) Why do you think that V mantel cell sales will be slow? - - reimbursement; enthusiastic about the data and will be presenting update next week at analyst day 4. impressions - - strong call by deborah; she cut to the level she had to in order to make the 2006 non-gaap profitability goal; the concept of “discovery engine” was used so often that bob tepper may survive; not as fortunate, however, was linda pine. from recent 8k: On October 20, 2005, the Company and Linda Pine, senior vice president, human resources, agreed that Ms. Pine would be transitioning to a senior advisory role as a non-executive part-time employee. This change is expected to take place in the first quarter of 2006 and last through January 2007, at which point Ms. Pine plans to retire. Still quite a bit of analyst skepticism- - not one analyst said “nice quarter.” 5. postscript - - the time required to post these detailed notes has increased dramatically over the past 5 years. since my available time has been decreasing, it has been a challenge to get it done the same day. thus, this quarter’s detailed notes will be my last for mlnm and incy. sales