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Biotech / Medical : Martek Biosciences---- future biotech cash cow! -- Ignore unavailable to you. Want to Upgrade?

To: bill small who wrote (20)	3/21/1996 5:20:00 AM
From: Asymmetric	Respond to of 258

See www2.nando.net/nt/health for article on Martek..................................I guess the PR stuff is already kicking in!!!!! Also resulted in nice upward tick of 2 1/4 today to $35. I may bite on this one again. From the action today, I better not take too long to make up my mind. My feeling is that this one should hit about $45 by year end, which would give it a 28% gain from current $35/sh. That's not too shabby for any investment. Since I don't know the profit margin, sales of formulaid are in the $300 million range (for 100% infant formula market) for 1997 are the guesstimate. At present there are 13.04 million shares outstanding which at $35/sh gives it a present market cap of $456 million. If the shares sell at 2 times sales, a desirable ratio in any stock, then the market cap should rise to $600 million. A $600 million market cap divided by 13.04 million shares equates roughly to $45/sh. (in case you wanted to see how I arrived at a $45 per share figure).......................................................................Of course the usual caveat to do your own you know what holds here. This is MHO only.............................So do you know when is FDA approval for use in USA? I presume that is the hold-up for licensing DHA to other 58% of infant formula market - or are there other issues at stake as far as signing up the other major manufacturers of formula?.............................................................FYI, picked up 1200 shares of Ikos (ikos) last week at 15 1/4. Shares were up today to 17 7/8. Check 'em out.......Peter

To: bill small who wrote (20)	1/12/2002 7:15:44 AM
From: Asymmetric	Read Replies (1) \| Respond to of 258

Hey Bill, Our Boat Finally Came In!!! Wherever you are. It only took 5 years from when we last talked on this thread. Hope you made a boatload of money here. Congratulations to Martek for their perseverence and helping to make baby formula a better product. Peter Martek's Shares Jump 25 Percent Two Infant Formula Deals Announced By Terence Chea / Washington Post Staff Writer Friday, January 11, 2002; Page E05 Shares of Martek Biosciences Corp. jumped 25 percent yesterday after two major U.S. infant-formula makers announced plans to launch new versions of formula that contain the Columbia company's nutritional supplements. Mead Johnson Nutritionals, which markets the Enfamil brand, said its new formula has been approved for sale by the Food and Drug Administration and will hit store shelves early next month. Ross Products, maker of Similac, said it is in "final discussions" with the FDA about its new product and hopes to start selling it in "early 2002." The two companies have about 80 percent of the U.S. formula market. Martek shares yesterday rose $5.66, or 25 percent, to $28.34. Martek's nutritional oils contain two fatty acids that studies show are important to an infant's mental and visual development. DHA, docosahexaenoic acid, and ARA, arachidonic acid, are naturally present in breast milk but not in regular infant formula. Several recent studies have found that babies who were fed formula supplemented with DHA and ARA performed better on mental and visual tests than infants who were fed unsupplemented formula. Formula containing the nutrients is sold in more than 60 countries, but it is not yet available in the United States. In addition to licensing the oils to Mead Johnson and Ross Products, Martek has also licensed them to American Home Products Corp. and Royal Numico for use in infant formula. In May, the FDA approved the sale of Martek's oils in this country, granting it "Generally Recognized As Safe" status. Founded in 1985, Martek makes the nutritional oils from laboratory-grown algae. It manufactures the product at its factory in Winchester, Ky. The product will also be produced at a South Carolina fermentation company Martek agreed to acquire last month. The U.S. formula market makes up about one-third of the worldwide market for infant formula, which is estimated at $6 billion to $8 billion. Martek usually gets about 5 percent of final product sales, said Peter Buzy, Martek's chief financial officer. Martek previously said it expects its revenue in 2002 to be double the $19 million it generated in 2001. Scott Van Winkle, an analyst at Adams, Harkness & Hill, the investment bank in Boston, said he expects U.S. sales of supplemented formula to eventually generate $100 million to $125 million in revenue for Martek. Mead Johnson Nutritionals, a division of Bristol-Myers Squibb Co., said the formula containing the supplement will cost 10 to 15 percent more than the regular formula. The company plans to promote the product by marketing its benefits to health care professionals. "Breast milk is the gold standard," said Pete Paradossi, a Mead Johnson spokesman. "We're trying to bring our formula as close as possible to breast milk."