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

To: astro who wrote (1028)	6/18/1998 5:34:00 PM
From: David Cathcart	Read Replies (3) \| Respond to of 1826

I had a long conversation this afternoon with Chuck Blitzer regarding the recent insider selling and other issues. Highlights: > In the case of stock sold by Jim Adam and Luri Jean Gille, the cost base of the stock was very low and expiring options were a factor. He mentioned that his broker called him during the one-day run-up in the stock and he quickly declined to sell any when the stock was at $18. In Blitzer's view, MOGN is worth more today than the $24 high it reached that day. The fundamentals of MGI Pharma have never looked as good as they do today. > All looks very positive for MGI 114 and phase II is near. They are excited to soon have the opportunity to administer to drug to patients with treatable tumors. > The NCI remains excited about MGI 114 and they remain committed to sponsoring numerous phase II trials. > Negotiations are continuing for a Euro partner for 114 but Blitzer is in no hurry to rush into anything that is not in the best interest of the company and its shareholders. He said that MGI Pharma is willing to share distribution rights for the US for MGI 114 if the drug proves to be big enough to warrant it. However, he sees no reason to sell shared US rights today and he would rather wait until after the drug proves its value in phase II. Obviously, it is clear that Blitzer likes what he sees in MGI 114 and is confident that the drug will be worth more at the conclusion of phase II. Blitzer is in the position to know more about MGI 114 that we do, so his confidence is very interesting. > Early acceptance of Salagen by rheumatologists for Sjogren's has been very positive. Blitzer said that the true value of Salagen will be revealed in the prescription refill pattern by end users of the drug. That data from prescription refills is a couple of months away. > Momentum is building with INFeD and they remain confident that it will make a strong contribution to the MGI Pharma bottom line. However, it could be the end of the year before a significant contribution from INFeD is realized. > He reiterated that 1998 will be a pivotal year for MGI Pharma and announcements between now and the end of the year will substantiate this statement. As for me, I'm still long MOGN. I sold some at 9« & 10, and bought it all back between 6 3/4 - 7¬. The overall market scares me but I very much like what I see in MOGN. David