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Biotech / Medical : anika research(anik) -- Ignore unavailable to you. Want to Upgrade?

To: Saul H Rosenthal who wrote (129)	7/11/1998 11:14:00 AM
From: chirodoc	Read Replies (1) \| Respond to of 328

Odds and Ends Revisitedorthodm Jul 10 1998 10:46AM EDTYour right Jetson_B , let us not foregot about BIOX. If you'll bare(*laughing) with ole prof. orthodm, I'll give you a history lesson. In November 1996 before all the hype, BIOX had revenues of about $3 million, mostly from cosmetics and opthalmic products. The stock price for the previous 52 weeks traded in the $12-$9.50 range. Market Cap was $80 million. The bright spot begining in Nov was a presentation of their 200 patient clinical trial statistically demonstrating improved joint mobility and pain relief vs. NSAID's at the Am College of Rhuematology meeting. In Canada they had launched the product through a direct sales force in late 1992. In 1996 they signed a deal with RPR to expand istribution. You make a good point Jason_B that the big runup has been after the FDA filings, after the Panel Reviews, After the PMA was issued, and just as important...after a major distribution announcement that would flow a total revenue stream of $40-$50 million in licensing and milestone fee's from Wyeth, Boehringer-Ingelheim, Roche, Novartis,and RPR. Recently, several issues have been raised that may compromise non licensing revenue expectations. They are the rumors surrounding the level of backorders and their ability to obtain payment from major insurers for the product. They claim new production facilities in the late 4th quarter will solve that, but continued backorders will either push sales to Hyalgan or hopefully ANIKland in late 98 early 99 before they can fully recover. Also, what about the other major market commitments throughout the world with their other partners? The ability for the Dr. and patient to be paid by an insurer is critical to overall market success in the drug/device business. P.S. ANIK had a similar profile in 1996. $3+million in revenues, stock price trading in the $3-$5.75 range with a market cap of $28 million(Did you buy in?). Orthovisc was just starting to be sold in Canada through DePuy for a TMJ Dysfunction and had filed an IDE to begin clinical trials in the US, and also filed for a CE mark in Europe. Sound familiar? That's why I say watch both carefully, lessons can be learned. Right now BIOX is on fast forward by approx. 12-24 months, but who knows for how long after the paradigm shifts to ANIKland. Final point. Both Hyalgan and Orthovisc are pure HA derivatives, while Synvisc is a cross-linked product of HA design,they say, to achieve a higher molecular weight. In Canada, an early flier given to a surgeon friend pointed this out. This may be the tip of the iceberg on how Orthovisc is being positioned against Synvisc. More to come I'm sure. So long and regards, "Ole Prof Orthodm"