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

To: tuck who wrote (1650)	1/11/2006 2:37:21 PM
From: tuck	Read Replies (1) \| Respond to of 1826

>>MGI Pharma Still A 'Solid Company' Despite Mixed Guidance Kate DuBose Tomassi, 01.11.06, 11:34 AM ET Banc of America Securities analyst David Maris lowered the price target on MGI Pharma (nasdaq: MOGN - news - people ) to $24 from $30 after the company pre-announced slightly lower-than-expected fourth-quarter sales of Aloxi, its post-chemotherapy nausea treatment, and Gliadel, a brain tumor treatment. MGI provided “mixed guidance” for 2006, according to the research analyst. For 2006, 2007 and 2008, Maris lowered his earnings-per-share estimates on MGI to 10 cents, 50 cents and 97 cents, respectively, from 51 cents, 90 cents and $1.35. "Top-line guidance was fairly in-line with our estimates, [but] expense guidance diverged from our expectations,” said the research analyst. MGI's selling, general and administrative expenses of $140 million exceeded the analyst’s expectation of $120 million. The analyst noted “minor creeping of timelines for [MGI's] pipeline.” In particular, MGI originally said it would file for Saforis, a cancer-related treatment, in the third quarter of 2005 but now predicts a filing in the second quarter of 2006. "We continue to believe that with a full pipeline and a strong base of sales supported by Aloxi, MGI Pharma represents a solid company with great growth and good value at these levels,” the research analyst said.<< snip I'm pretty sure my option hedge of written Jan 17.5 calls is going to expire worthless, allowing me to keep that money. I'm tempted not to rehedge after that, as I can't think of what other bad news could occur, and . . . MGI might perhaps be a munch candidate. There's been a bit of insider buying near these levels. Anyone else got a take or strategy here? Cheers, Tuck