Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Miljenko Zuanic who wrote (1006)	10/31/2005 8:53:38 AM
From: tom pope	Respond to of 3557

This is a summary of what Merrill had to say about a month ago. I'll reproduce the full text if any one is interested • Amending income statement model. Our estimates have been revised following Sanofi-Aventis’s (SNY, N) expansion of the oncology program, termination of the IL-1 Trap program in rheumatoid arthritis, and restructuring to conserve cash. • Restructuring to conserve cash. REGN's restructuring included staff reductions of 23%, and a projected year-end cash balance of $285-$295 mm. While management expects current cash balances to be sufficient until mid-2008, we have conservatively included an equity financing of $200mm in 2006E. • Neutral rating unchanged. Our income statement model only allocates modest placeholder revenues for VEGF Trap in oncology, due to lack of significant clinical data, and clinical/regulatory timelines. However, substantially higher upside potential exists pending appropriate data disclosure. In order to provide some context, we have provided a) Avastin’s approved and pending indications; b) ML estimates for Avastin revenues; and c) sensitivity analysis if VEGF Trap timelines were to be accelerated. We will review our investment rating pending further visibility on the development of VEGF Trap in oncology and AMD, IL-1 Trap in osteoarthritis and new niche indications, clarity on timelines to regulatory filing, and progress on the company’s management of cash reserves.

To: Miljenko Zuanic who wrote (1006)	11/3/2005 7:25:49 PM
From: Miljenko Zuanic	Respond to of 3557

From today PR: <<Two safety and tolerability combination studies were ongoing at the end of the third quarter of 2005 and a third study was initiated in October 2005. Two more are scheduled to begin as early as the fourth quarter of 2005.>> From where/when they got Trap clinical trials quantity? It is lower dose than Avastin, still....I guess it was 04 reserve at Aventis. <<Reimbursement of the Company's VEGF Trap development expenses by sanofi-aventis decreased to $8.9 million in the third quarter of 2005 from $19.4 million in the comparable quarter of 2004, and to $23.4 million in the first nine months of 2005 from $53.8 million in the same period of 2004, primarily due to lower clinical supply manufacturing costs. The Company manufactured VEGF Trap clinical supplies during the first nine months of 2004, but not during the first nine months of 2005.>> If total contract manufacturing expense were $3.25 M, and expense due to MRK part are $3.0 M, there is difference of $0.25 M!!! Great! <<Contract manufacturing expense relates to the Merck agreement. Exclusive of Stock Option Expense, contract manufacturing expense decreased to $3.0 million in the third quarter of 2005... I do not know what is going on. I guess there is difference between API and "drug product", and who is doing what??? Maybe Aventis is doing formulation??? And manufacturing API! Or reserve from 2004 are significant! Miljenko