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

To: FNS who wrote (779)	8/26/1998 10:53:00 AM
From: Hong-Lee Yu	Respond to of 965

FNS, Retavase currently competes with Activase (GNE) in a 300M market. They had about 15.5M in Q2. the co gave out guidance to have 55-65M revenues for Retavase in 1998 by Centocor (Q1 is 2.2M). The operating break-even point (excluding interest) is about 20M per quarter, which they should be able to achieve in Q4. I would expect CNTO gross margin will improve nicely after Remicade becomes available, since ReoPro and Remicade use the same facility to manufacture. Retavase enjoyed 85% margin and Remicade should be similar or better. It is the company's goal to have 25-30% operating margin in year 2000 with over 70% gross margin. Operating margin should be further improved after year 2000. Both Biogen and AMGN have over 40% operating margin.