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Biotech / Medical : Biomatrix (BXM) Looking Great -- Ignore unavailable to you. Want to Upgrade?

To: John McCarthy who wrote (317)	1/8/1998 11:30:00 AM
From: Alex Greenland	Read Replies (1) \| Respond to of 569

NEW YORK--(BUSINESS WIRE)--Jan. 8, 1998--Citing extraordinary growth prospects for 1998 and beyond, Brookehill Equities today reaffirmed its ''Aggressive Buy'' rating on Biomatrix, Inc. (NASDAQ:BIOX - news) and raised its six-month and 12-month price targets for the shares to $40 and $70, respectively. Biomatrix's shares closed at $32 13/16 on Wednesday, Jan. 7th. Brookehill estimates the company can achieve operating earnings of $1.43 per share in 1998 and $3.35 per share in 1999. Biomatrix is expected to report an operating loss of $0.38 per share for 1997, although reported earnings could exceed $1.40. The company received about $20 million in 1997 in advanced payments and royalties from distributors who will market Biomatrix's proprietary product, Synvisc, which is used in the treatment of osteoarthritis (OA). ''We expect the company to achieve operating profits of $0.11 per share in the fourth quarter of 1997, its first period of real earnings,'' notes Brookehill. ''We believe Biomatrix will generate operating earnings in each quarter of 1998.'' The Brookehill report notes that Synvisc could become a $150-200 million product for Biomatrix by the end of the decade (revenues are projected to be $10 million in 1997), and realize aftertax margins of 40%. ''Biomatrix is also nearing commercialization of 6-8 next-generation products that could be in the marketplace by 2000, and which could be generating annual revenues of at least $100 million (and earnings in excess of $3.00 per share) several years after introduction,'' reports Brookehill. Brookehill Equities initiated coverage of Biomatrix in August 1996, at which time the stock was trading at $14. Contact: Brookehill Equities, Inc. Walter Grossman, 212/593-5310