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Biotech / Medical : Agouron Pharmaceuticals (AGPH) -- Ignore unavailable to you. Want to Upgrade?

To: Peter Church who wrote (3291)	12/11/1997 7:30:00 PM
From: biopicker	Respond to of 6136

Agouron has 30.4 million shares as of the end of October times $28 per share equals $840 million valuation. The example of four times sales on the ICN purchase from Roche was just an example of the potential value for some drugs. These drugs, of course, are old products with no growth potential at all, and ICN was still willing to pay four times sales. A more reasonable valuation in terms of sales for biotech companies would be six times sales. Six times $360 million equals $1.05 billion compared to Agouron's $840 million market cap. Also, Agouron will start selling very shortly using fiscal 1999 sales estimates, which I believe will be well in excess of $400 million. Six times $400 million equals $2.4 billion, divided by two, is $1.2 billion. In any event, Viracept is an extremely dynamic and exciting product, which has very strong growth potential over the next few years, and is a very solid asset. Hope this helps a little, and sorry my prior post was confusing.