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Biotech / Medical : Lifecell (LIFC) -- Ignore unavailable to you. Want to Upgrade?

To: Joe Btfsplk who wrote (356)	5/2/1999 6:43:00 PM
From: W Shakespeare	Respond to of 395

Thank you for your response. My concern about raw materials for Alloderm were twofold. First, an adequate supply at a reasonable cost (from my understanding, the tissue banks can only be reimbursed for their costs). Second, a possible backlash from selling donated tissue at a profit. Since the company is not profitable at the moment, I don't know if the issue has arisen. But the company's 10-K points out that there are many regulations regarding the pricing of donated organs. Are there any other examples of companies selling donated organs for a profit? In regard to the FDA, does the company have any experience getting products through the approval process? Several of their new products will require approval. Finally, in regard to profitability, the two brokerages that follow the stock were underwriters for its initial offering. That fact tends to elicit great caution from me. However, the potential for the company is staggering and the balance sheet is solid. This is the kind of stock that can be bought on the dips and held until the potential is realized. From the look of the financial statements, the company probably won't realize a quarterly profit for at least three or four more quarters.