15
BioTech Stock Report, January 2004
Company
Reference
Date Price
12-18
Price
%
1-mo
%
YTD
%
Inception
Institutional
Ownership:+/-
Millennium (MLNM)
3-27-97 4.18
17.53
19.82
120.78
328.21
54:NC
Protein Design Labs (PDLI)
7-31-98 18.88
16.55
27.11
83.89
250.73
77:NC
On Dec. 11, 2003, PDLI announced it initiated Phase I/II of Nuvion for the treatment of severe ulcerative colitis. On Dec. 1, 2003, PDLI and DNA
said they plan to extend their patent licensing master agreement for Xolair, Raptiva and Avastin. PDLI's new management team will focus on devel-
oping
four of its antibodies; Zenapax, anti-gamma-interferon, Nuvion and anti-IL4 for a variety of inflammatory and autoimmune disorders. The
company's projected 2003 EPS is a loss of $0.820.88 a share. See September/November 2003 BioUpdates. Buy below $13.
Vertex (VRTX)
8-29-97 17.23
9.12
-30.87
-44.48
-48.61
72:-1
On Oct. 21, the FDA approved the marketing of Lexiva formerly known as VX -175 (908) as a treatment for AIDS. The company will launch Lex-
iva later this year. In late September 2003, investors filed lawsuits against VRTX. See current BioUpdates for comments.
Stable Growth
Amgen (AMGN)
3-27-97 14.44
61.59
3.08
27.41
326.60
69:NC
In mid-December, AMGN said its 2003 EPS to hit the middle of the $1.85-$1.95 range. The company also said 2004 EPS will grow in the low to
mid-twenty percent to $2.30-$2.40 range. On July 8, 2003, the company has submitted a sBLA for psoriasis. The long term prospects are good for
AMGN. (See Sept./Oct./Nov. 2003 and current BioUpdates for more info.) Buy around $60 with a target price of $80.
Chiron (CHIR)
3-27-97 18.88
55.39
6.38
47.31
207.72
43:NC
On Dec. 11, 2003, CHIR and Gen-Probe announced they will begin clinical trials for Procleix Ultrio Assay for the simultaneous detection of HIV,
Hepatitis C and B. The company expects earnings of $1.40-$1.50 for 2003. See November BioUpdates for our view on the company. Last month
we said, sell shares in the high 50s.
Genentech (DNA)
3-27-97 14.47
91.30
9.96
175.33
531.02
38:NC
The clinical data for Avastin to treat colorectal cancer is very promising and propelled DNA's share price. On June 26th, Avastin received fast track
designation from the FDA and on July 8th, Roche said it obtained rights to market Avastin outside the U.S. See November/December 2003 and cur-
rent BioUpdates. DNA's share price is fully valued, rate as a hold.
Genzyme (GENZ)
3-27-97 24.00
48.15
10.28
62.83
301.25
81:+1
On Nov. 21, Cholestagel, a drug to lower elevated cholesterol received marketing approval from the European CPMP. And on Nov. 21, 2003, the
general and plastic surgery device advisory panel recommended FDA approval of Hylaform gel, an anti-wrinkle product (cosmetic dermal filler). On
Nov. 24, GENZ initiated a pivotal trial for Synvisc for hip pain due to osteoarthritis. On Dec. 12, GENZ initiated Phase I trials of Genz-29155, a
small molecule drug for the treatment of multiple sclerosis. See September/ November/December 2003 and current Bioupdates for more info. GENZ
plans to file Myozyme's BLA, to treat Pompe disease in the U.S./Europe in late 2004. Buy GENZ on the pullbacks.
Medimmune (MEDI)
8-31-99 51.60
25.71
8.03
-5.37
-50.17
79:NC
On Sept. 2, MEDI launched FluMist for the 2003/2004 flu season. And on Dec. 5, 2003, MEDI announced new data that suggested FluMist has the
ability to reach a broad range of immunity than traditional flu vaccines. FluMist has potential and will eventually reach its full market value. MEDI
projected 2003 year EPS to $0.70 to $0.80 a share. On Dec. 17, MEDI initiated Phase II trial of Vitaxin for psoriasis and prostate cancer. See
November/December 2003 and current BioUpdates. Continue to buy below $25 with a revised target price of $35.
On Dec. 18, MLNM and XOMA announced the initiation of a Phase I clinical trial with MLN2222 to help reduce the incidence of death and heart
attacks in patients undergoing cardiopulmonary bypass surgery. On Dec. 4, MLNM received fast-track designation for MLN2704 in patients with
androgen independent prostate cancer. Currently, MLN2074 is in Phase I/II clinical trials. MLNM's long term prospects remain good. Buy below
$13 with a target price of $18. See September/November/December 2003 and current BioUpdates.
