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Biotech / Medical : Depotech(depo) -- Ignore unavailable to you. Want to Upgrade?

To: chirodoc who wrote (676)	1/3/1998 10:56:00 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 887

chirodoc, It looks to me like some people are adding at these levels. Even small incremental price increases from here represent big percentage gains, and the stock is trading very close to book value. On balance I think the risk/reward situation looks favorable with much more upside potential than downside risk from here. If management's conversations with the FDA produce a viable way to get DepoCyt approved, the stock is an easy double from here. Longer term, I think DEPO may opt for more partnerships in which they take a smaller percentage of the new drug in exchange for the partner assuming more of the cost of trials. DepoFoam formulation partnerships should be particularly attractive to companies with drugs nearing patent expiration, giving them a way to extend the life on their drugs. This should increase the value of DEPO's pipeline and give lift to the stock price. Despite the disappointment around DepoCyt and getting a haircut that felt more like a scalping, I think the technology remains viable. The logic that DepoFoam formulations of proven drugs should result in a higher percentage of approvable drugs remains intact. Baird