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Biotech / Medical : Monsanto Co. -- Ignore unavailable to you. Want to Upgrade?

To: Dan Spillane who wrote (2139)	6/7/1999 11:53:00 AM
From: Anthony Wong	Respond to of 2539

Largest Medicaid Program in U.S. Places Celebrex(TM) on Formulary; New Arthritis Treatment Gains Rapid Managed Care Acceptance Monday June 7, 11:17 am Eastern Time biz.yahoo.com

To: Dan Spillane who wrote (2139)	6/7/1999 12:17:00 PM
From: Anthony Wong	Read Replies (2) \| Respond to of 2539

Magic 25: Slow Sales of Vioxx Bode Well for Monsanto's Celebrex Yahoo! Individual Investor Online Jun 07, 1999 Shares of Monsanto continue to languish at the lower end of the company's recent $40-50 trading range. As discussed in our last update, Monsanto shares have been under pressure following the market launch of a rival product to Celebrex, Vioxx, which was developed and marketed by Merck (NYSE:MRK - news) . Investors have expressed concern over the effect that Vioxx may have on Celebrex sales. We have argued in the past that there was a large enough market opportunity for both drugs. However, because Celebrex was first to hit the market, Monsanto and marketing partner, Pfizer (NYSE:PFE - news) , had a key advantage. It appears as if this will hold true. In its first full week on the market, doctors wrote about 2,000 prescriptions for Vioxx according to market research firm NDC Health Information Services. By contrast, in its first full week on the market, doctors wrote over 15,000 prescriptions for Celebrex. While it is still to premature to say that Vioxx will not impact Celebrex sales it does appear that the first mover advantage will come into play. Merck was not able to make any safety claims with regard to Vioxx that would enable it to differentiate its product from Celebrex. Thus, over the past several months, Pfizer has been able to strengthen key relationships with doctors who prescribe anti-arthritis drugs. With no safety or efficacy advantages, it is unlikely that they will switch to prescribing Vioxx. Monsanto shares may also be under pressure following word that CEO Robert Shapiro has filed to sell 207,000 shares of stock. There has been a considerable amount of speculation recently regarding merger and acquisition activity around Monsanto. If Shapiro has filed to sell stock, it is unlikely that there is an imminent deal. In addition to Celebrex, Monsanto is seeing strong demand for its agriculture products. After heavy investments in the field of agro-biotech, Monsanto is seeing a return on its investment. Over the next year, Monsanto has considerable earnings leverage from its life-sciences operations that could fuel $1.50 in per share earnings next year. Monsanto shares represent excellent value at current levels. As concerns over Vioxx fade, we expect the shares to trade above the recent trading range and toward our price target of $60. Analyst: Eric Singer Updated on May 25, 1999 with MTC at $42.50 Recommended on 11/16/98 at $42.13 fnews.yahoo.com