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Biotech / Medical : Centocor ( CNTO ) -- Ignore unavailable to you. Want to Upgrade?

To: Robohogs who wrote (660)	5/12/1998 11:14:00 AM
From: ALTERN8	Respond to of 965

BancAmerica Robertson Stephens Initiates Coverage on Centocor With a Buy Rating SAN FRANCISCO, May 12 /PRNewswire/ -- BancAmerica Robertson Stephens research analyst Jay Silverman initiated coverage today on Centocor (Nasdaq: CNTO - news) with a Buy rating. Centocor is focused on the development, acquisition and commercialization of therapeutic products for serious, unmet medical needs. The company's flagship product, ReoPro, is a monoclonal antibody that blocks platelet aggregation and reduces the complications of angioplasty and acute coronary syndromes, such as myocardial infarction (heart attack), stroke and unstable angina. With its acquisition of Retavase - a thrombolytic (clot buster) administered in the emergency room for the treatment of heart attacks - Centocor has created a fully integrated infrastructure. ''Not only is Retavase synergistic with ReoPro, but it should allow the company higher returns and a greater control over its future,'' said Silverman. ''Every leading biotechnology company has experienced a product slowdown that eventually led to its loss of independence,'' said Silverman. ''Centocor's purchase of Retavase is a brilliant, proactive, and forward-looking strategic move, which should, over time, reduce the company's dependence on one product, thereby creating a more predictable earnings stream and lower volatility. The result is a biopharmaceutical company with sustainable earnings growth at the very high end of the drug industry,'' Silverman concluded. Silverman anticipates that Centocor's next drug candidate, Avakine, should gain FDA advisory panel recommendation in May for treating fistulae in Crohn's disease. By 1999, Avakine should be approved for the treatment of severe rheumatoid arthritis. ''Addressing a significant unmet medical need and with full domestic rights, Avakine will be the most important driver in Centocor's sales and earnings over the next few years,'' Silverman believes. Silverman's EPS estimates for F1998 and F1999 are $0.44 and $0.88, respectively.