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Biotech / Medical : Arterial Vascular Engineering AVEI -- Ignore unavailable to you. Want to Upgrade?

To: Bharat H. Barai who wrote (330)	9/14/1998 9:16:00 PM
From: Immi	Read Replies (1) \| Respond to of 410

Bharat, Thanks for your response. Immi

To: Bharat H. Barai who wrote (330)	9/18/1998 2:16:00 PM
From: Dave Chanoux	Read Replies (2) \| Respond to of 410

Thanks for sharing your insight on AVEI's stents. Here are two other areas where I am groping for understanding of AVEI's business. Can anyone help? 1. While I read in the 10K and other reports about the products (sizes, uses etc,), I don't have a feel for economic value or how they are sold and used. Is a typical stent sold by the one, by the box/package or in conjunction with a delivery system? What does a typical stent cost AVEI's customer? I assume it is purchased and stocked in a hospital's surgical inventory until used; if so, is the doctor's brand/manufacturer preference a result of what is available or does the doctor really call for a brand? 2. After the FDA approval last December, the company achieved a tremendous increase in revenue in Q3 and Q4 FY98. Does this represent a "filling the pipeline", so to speak? I image that there is some of that effect, but how much of the half-year revenue is a "one-time effect" and how much really represents consumption. If it is all pipeline, then would we expect an eventual revenue level which is consistent with consumption. This line of thinking comes from experience with Genzyme's Seprafilm product, a anti-adhesion treatment used in abdominal surgery. On release, there was substantial revenue and everyone was happy. The company tracked re-order rates and found that getting it into the hospital was not enough; consumption was minimal. At this time, Seprafilm is considered by some to be a failure. Genzyme has re-directed marketing to the doctor in an effort to increase the doctor's usage of the product. Is that what happened to J&J's stents? Sorry for all the questions with no answers. Perhaps they will stimulate some discussion on the business fundamentals? Regards, Dave Chanoux