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Biotech / Medical : Imclone systems (IMCL) -- Ignore unavailable to you. Want to Upgrade?

To: Silicon Trader who wrote (372)	3/10/1999 9:01:00 PM
From: hoffy	Read Replies (1) \| Respond to of 2515

A post on IMCL from an Individual Investor article: ............ There are many ways to fight cancer. Among the most popular are tumor vaccines to prevent cancer cells from spreading and using antibodies to arrest cancer cell growth. Another approach is anti-angiogenesis, in which a drug short-circuits the growth of tumor-forming blood vessels. Amazingly, ImClone (NASDAQ:IMCL - news) is one company that is exploring all three cancer treatment approaches. ImClone's Best Medicine: C225 ImClone's lead product is called C225 -- a drug that inhibits the growth of skin cancer cells and has been used with radiation treatments in Phase I/II trials in treating head and neck cancer patients. The trials produced outstanding results: 14 of the 16 head and neck cancer patients treated with C225 plus radiation showed a 100% tumor regression, as compared with historical rates of 30%-40% for radiation alone. .................... ImClone's C225 could easily become a billion dollar drug, according to the Medical Technology Stock Letter's McCamant . The drug targets patients with high levels of skin cancer cell growth or EGF (Epidermal Growth Factor), which is characteristic of more than one-third of all cancer tumors. ..................... While the size of the cancer market is huge, stock-pickers will also be excited by current valuations. A useful approach, says McCamant, is the "multiple of future sales" metric. Though four times revenue is realistic and conservative, it may be too conservative given that some companies with new products now sell at closer to ten times revenue. ....................... Calculating that multiple for ImClone, McCamant says he "finds it hard to believe" sales of C225 will be less than $200 million by 2002, and possibly as high as $500 million. Using the midpoint multiple of 7.5 times revenue, the analyst sees a range of between $1.5 billion and $3.75 billion in ImClone's market capitalization. That nets to a share price range of $60 - $150, a dramatic improvement over the current price