15
BioTech Stock Report, March 2003
Company
Reference
Date Price
2-27
Price
%
1-mo
%
YTD
%
Inception
Institutional
Ownership:+/-
Scios (SCIO)
6-28-02 30.61
43.73
38.96
34.22
42.86
99:NC
J&J made an offer to buy Scios for $2.4 bil in cash/stock. Take your profits.
Vertex (VRTX)
8-29-97 17.23
11.02
-20.43
-30.47
-35.65
75:+3
The NDA filing of VX-175, VRTX's AIDS drug was submitted to the FDA in December 2002. VRTX is a strong company, but share price has fallen
too fast. Change from buy to hold, until share price stabilizes.
Stable Growth
Amgen (AMGN)
3-27-97 14.44
54.06
6.08
11.83
274.44
65:+7
AMGN foresees 2003 earnings of $1.70 to $1.80 driven by its therapies for anemia and cancer. The FDA approved the Rhode Island plant to manu-
facture ENBREL. Production will begin sometime in the second quarter 2003 and should alleviate supply issues. In addition the company has submit-
ted a sBLA for the once-a-week dosing of Enbrel. The company also submitted the sBLA in the US for Enbrel for psoriatic arthritis and for ankylos-
ing spodylitis. The long term prospects are good for AMGN, buy when share price dips.
Biogen (BGEN)
3-27-97 38.25
35.58
-5.85
-11.18
86.04
73:+5
Amevive received FDA approval on Jan. 31 and the product will be launched soon. However, European regulators did not approve Amevive, instead
asking BGEN to conduct additional clinical trials that will require 2 years to complete. Avonex was approved on Feb. 7, 2003 by the FDA for early
MS treatment. Change from buy to hold.
Chiron (CHIR)
3-27-97 18.88
36.24
-3.54
-3.62
101.33
40:NC
CHIR to initiate Phase III clinical studies for its meningococcal C vaccine, Menjugate this year. Buy CHIR when its share price dips.
Forest laboratories (FRX)
1-30-03 50.94
49.10
-3.61
-3.61
-3.61
As we said in our Feb. 2003 issue, FRX`s share price would pull back. Nonetheless, the company still has good fundamentals and a story on two of its
drugs, Lexapro and Memantine.
Genentech (DNA)
3-27-97 14.47
35.28
-3.53
6.39
143.84
33:NC
BLA for Raptiva, formerly known as Xanelim has been filed with the FDA. In addition, DNA and XOMA announced long-term data that showed
Raptiva was able to improve the patients' psoriasis condition. The amended BLA for Xolair, an asthma drug was filed with the FDA on December
19, 2002. The odds are in favor Xolair will be approved and become a blockbuster. DNA has a deep pipeline. Target price is $50.
Genzyme (GENZ)
3-27-97 24.00
30.96
-5.55
4.70
158.00
84:+4
The FDA advisory committee gave a positive review on Fabrazyme for the treatment of Fabry disease on January 13, 2003. GENZ and Biomarin
received an FDA approval letter to market Aldurazyme as long as the companies answer three questions the FDA should give approval. European
regulators approve Aldurazyme for marketing. GENZ also filed a MAA with the European Union to market Cholestagel to lower elevated choles-
terol. The catalysts are in place for Renagel sales to increase. Maintain buy rating.
IDEC Pharmaceuticals (IDPH)
8-31-98 3.00
29.16
-7.63
-12.09
872.00
92:+5
Corixa's Bexxar, its drug to treat lymphoma appears it will soon be on the market competing with IDEC's Zevalin. We'll continue to rate the com-
pany as a buy.
Medimmune (MEDI)
8-31-99 51.60
29.66
-.67
9.16
-42.51
83:+6
Back in December 2002, the FDA advisory committee recommended marketing approval for FluMist. On January 2003, the FDA responded with a
complete response letter, no additional clinical trials are needed and MEDI has answered several questions that the FDA had. Launch of FluMist is
expected for the 2003/2004 flu season. MEDI's fourth earnings of 33 cents a share meet Wall Street's estimate. Target price of $30 met, buy on
pullbacks.
91:+4
