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

To: Izzy who wrote (3578)	1/10/1998 5:11:00 PM
From: billkirn	Respond to of 6136

HI Izzy: Just a few thoughts. The 70 by 11/97 for me, was based on momentum and technical factors, but right in the middle of this momentum AGPH killed the Rouche connection and all that R&D funding, and the world changed. Much of that revenue from Viracept will now go into development costs for AG3340, AG2034, and in the next 2 months the cold virus compound will be selected. This all adds up to great furute potential, highr risk, and earnings not growing as fast as previously expected. From IR, the earnings shortfall will be felt in the 2nd half for FY98, and more so in FY99. Therefore, if the market weighted the stock value towards near term earnings growth rather than future earnings potential, the price will not advance as much as it would have with Rouche in the deal. I think the market spoke, we need to listen, and reduce our expectations for the next few years. I would still buy at these values, and have done so. Bill

To: Izzy who wrote (3578)	1/10/1998 7:09:00 PM
From: JOHN W.	Respond to of 6136

Actually, MS has a 53 twelve month tgt. But also note PW still has a 65-70, and RS&C still higher. And as margie has noted estimates continue to rise. Yes the Roche announcement was a surprise, but I agree with L. Moss in that if you believe in the potential of AG3340 or 2034, the deal leads to more long term valuation and increases the intrinsic value of the company. This years price will generally track Viracept sales and the overall mkt, which in itself could easily generate the PW tgt