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

To: Vector1 who wrote (692)	2/18/1998 5:40:00 AM
From: David Cathcart	Read Replies (1) \| Respond to of 1826

V1, <<Yes a European deal would be great but the real driver of the stock will be Salagen sales.>> True. Salagen sales are the key for the short term. The importance of the European deal is that it will protect Salagen profits. Ironically, without the European deal, it appears that the presence of MGI 114 has not helped, and perhaps has hurt, MOGN's share price. I sense that investors fear the cash drain of phase II. A good European deal and the stock should easily be $10 right away. On top of that, if we get good news out of phase II for MGI 114, hold on to your hat. <<With almost 15m in cash and negligible burn they have no need to do a secondary offering. Analysts at major IBanks rarely pick up coverage of small cap stocks if there is not a strong likelihood of a significant fee generating event. >> Very interesting comment. I never considered the possibility that their cash in the till could be a factor in holding the stock price down. Interesting world we live in. David

To: Vector1 who wrote (692)	2/18/1998 9:04:00 AM
From: Russian Bear	Read Replies (2) \| Respond to of 1826

<<Yes a European deal would be great but the real driver of the stock will be Salagen sales.>> Agreed, V1. I wouldn't be in MOGN without Salagen, that much is certain. I imagine others feel the same. Do you have a good sense of Salagen's potential revenues, and the timing involved in the ramp-up? Just how much revenue can they raise with a sales force that numbers twenty-something, and how soon can they begin to do it? Let's use the estimate of the Sjogren's market of 1 million sufferers. What kind of market penetration do you envision MGI achieving initially? And ultimately? And is it safe to assume that they will be able to maintain their pricing of $1000/year per patient? Thanks, as always, for your insights. RB