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(notice 'compare & contrast near the end) |
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Financial Performance & Scoring -- © 2004 Gaskins IPO Desktop/IPOdesktop |
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Updated FRIDAY, 1-30 at 10:30 am NYtime |
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. Opening Premium Star Ratings: |
for DesktopPass subscribers |
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. Business Model Rating Criteria |
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A = high growth market, potential leader; B = more competitive market; C='public venture capital' |
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. Calculations |
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. IPO Price to annualized Sales Ratio -- (Price / Sales) |
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Numerator |
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Denominator |
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IPO market capitalization… |
Annualized Sales (last quarter's revenues times 4) |
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(post-IPO # of shares times mid-point of IPO price range) |
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. IPO Price to annualized Earnings (loss) -- (Price / Earnings) |
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Numerator |
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Denominator |
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IPO market cap |
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Annualized Earnings (loss) from the last quarter |
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========================================================================= |
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EyetechPharm |
EYET, 3-stars, C+ (see scorecard below) |
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biotech, specializing in therapeutics to treat diseases of the eye |
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New York, NY |
2001 |
2002 |
Sept 9mos* |
Sept 3mos* |
IPO Mkt |
Price / |
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Revenues (mm) |
0.0 |
0.0 |
30.3 |
10 |
Cap (mm) |
Revenue |
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R&D |
22.1 |
40.0 |
52.3 |
17 |
$809 |
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Net Income |
-24.6 |
-43.2 |
-29.4 |
-10 |
@$21 |
20 |
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*from Pfizer, see below, September 3 month figures are nine months divided by 3 |
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VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
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Cap (mm) |
Revenue |
Earnings |
BookValue |
TangibleBV |
in IPO |
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EyetechPharm(EYET) |
809 |
20 |
-20 |
4.1 |
4.1 |
15% |
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SCORECARD |
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Mgt |
Market |
Market Do- |
Proprie- |
Total |
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1-5, 5 is high |
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Growth |
mination |
tary |
rating |
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20 is perfect |
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2 |
3 |
0 |
3 |
8 |
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Biotech, focusing on |
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. Diseases affecting the back of the eye, particularly the retina |
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. EYET believes that these diseases have the greatest unmet medical need and |
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represent the largest potential market opportunities in ophthalmology. |
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Collaboration with Pfizer |
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FUNDING |
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. In February 2003, Pfizer paid EYET $100 million, consisting of a |
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$75 million up-front license fee and a $25 million equity investment. |
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. Pfizer's financial obligations include equity investments of up to an additional $25 million, |
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funding of a majority of the ongoing development costs for Macugen, payments of up to |
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$195.5 million based on regulatory milestones and payments of up to $450 million based |
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on sales milestones. |
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MARKETING |
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. Pfizer and EYET agreed to copromote Macugen in the U.S. and to share in profits and losses. |
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. EYET granted Pfizer the exclusive right to develop and commercialize Macugen outside the U.S. |
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pursuant to a royalty-bearing license. |
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Under the collaboration, EYET is entitled to participate in the U.S. in detailing Pfizer's product |
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Xalatan® for the treatment of glaucoma. |
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First product candidate, Macugen |
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TRIALS |
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Currently in two Phase 2/3 pivotal clinical trials for |
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. Wet AMD an age-related macular degeneration and for |
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, Diabetic macular edema, known as DME. |
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Both AMD and DME are serious diseases of the retina that can lead to |
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severe vision loss and blindness. |
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Market potential |
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AGE-RELATED |
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. AMD is the leading cause of severe vision loss and blindness in patients over the |
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age of 50 in the developed world. |
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. In the U. S. there are more than 1.6 million cases of wet AMD, with |
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approximately 200,000 new cases arising each year. |
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. Because AMD generally affects adults over 50 years of age, EYET expects the |
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incidence of AMD to increase significantly as the baby boom generation ages and |
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overall life expectancy increases. |
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DIABETIC-RELATED |
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. Diabetic retinopathy is the leading cause of blindness in working age adults and |
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a leading cause of vision loss in diabetics. |
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. DME is a common complication of diabetic retinopathy and often results in |
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severe vision loss and blindness. |
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. In the United States, there are approximately 500,000 people suffering from DME, |
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with approximately 75,000 new cases each year. |
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. EYET expects the incidence of DME to increase as the number of people |
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with diabetes increases. |
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UNMET NEEDS |
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Because the existing treatments for both wet AMD and DME have significant |
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limitations, there is a significant unmet medical need for a new therapy for these diseases. |
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FDA process |
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MARKETING APPROVAL |
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. Seeking marketing approval for the 0.3 mg dose of Macugen for the treatment of wet AMD. |
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. Based on the results from the first year of two Phase 2/3 pivotal clinical trials of Macugen |
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EYET plans to prepare and file a new drug application, or NDA, |
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with the FDA the third quarter of 2004 |
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FAST TRACK |
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The FDA has given "fast track" designation to Macugen for the treatment of both |
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wet AMD and DME. We have entered into a. |
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Competition |
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. There are also a number of companies working to develop new drugs and other |
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therapies to treat wet AMD and DME. |
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. EYET believes that following product candidates are in Phase 2 or Phase 3 clinical trials |
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- Genentech & Novartisare collaborating to develop a humanized |
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monoclonal antibody fragment, administered by intravitreal injection, that targets |
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VEGF for the treatment of wet AMD |
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- Alcon, Inc. is developing a steroid for the treatment of predominantly |
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classic subfoveal wet AMD. This drug candidate is injected behind the eye using a |
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customized injector inserted around the eye. |
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- Miravant Medical Technologies is developing a photodynamic therapy that is |
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similar to Visudyne for the treatment of wet AMD. |
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- Bausch & Lomb Incorporated and Control Delivery Systems, Inc. are developing |
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a surgically placed non-erodable intraocular implant for the delivery of steroids to |
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treat DME and swelling resulting from other causes. |
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- Oculex Pharmaceuticals is developing a bioerodable steroid implant for the |
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treatment of persistent macular edema. |
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- Eli Lilly & Co. is developing an orally administered inhibitor of an enzyme |
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named PKC beta for the treatment of diabetic retinopathy. |
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In addition, there are a number of other companies that are developing anti-VEGF technologies. |
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Some of these companies may seek to apply their technologies to AMD, DME and other |
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ophthalmic indications. |
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Shareholders |
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With a total of 68.5% pre-IPO include |
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. J.P. Morgan Partners, Schroder Ventures, Biotech Growth N.V., |
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. Pfizer, MPM Capital Entities, Merrill Lynch Ventures Entities |
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Use of $113 mm in IPO Proceeds |
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. 25% to fund research and development activities |
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. 30% to build sales and marketing capabilities |
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. 45% for general corporate purposes |
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Compare & Contrast |
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The last three companies from this industry sector (Standard Industrial |
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Classification Code: 2834) to go public are listed below, and the underlying |
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industry index: |
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Myogen (MYOG) |
Mrkt |
Price / |
Price / |
Price / |
Price / |
Price |
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Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
1-30--03 |
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Myogen (MYOG) |
473 |
197.1 |
-12 |
4.4 |
4.5 |
17.87 |
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Myogen (Nasdaq: MYOG) a Westminster, Colorado-based biopharmaceutical |
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company focusing on the discovery and development of small molecule |
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therapeutics for the treatment of cardiovascular disorders, priced its IPO |
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at $14 a share on Oct. 29, 2003. The stock closed Friday, Jan. 23, 2004, at |
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$18.06 a share –- up 29 percent from its initial offering price. |
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The Stock: |
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Estimated Consensus EPS: |
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52-week Price Range: |
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Dec./2002A: ($1.90) |
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High: $19.31 Low: $11.18 Recent: $18.06 |
Dec./2003E: ($1.90) |
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Number of brokers following the company: 4 |
Dec./2004E: ($1.61) |
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Average rating: "Strong Buy" |
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Dec./2005E: ($1.64) |
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Average price target: $21 a share |
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(deficit) |
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NitroMed (NTMD) |
Mrkt |
Price / |
Price / |
Price / |
Price / |
Price |
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Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
1-30--03 |
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NitroMed (NTMD) |
224 |
no rev* |
-16 |
2.8 |
2.9 |
8.76 |
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*according to the 10Q filed 12-18 |
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NitroMed (Nasdaq: NTMD) a Bedford, Massachusetts-based emerging |
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pharmaceutical company engaged in the development of proprietary |
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pharmaceuticals based on the therapeutic benefits of molecule nitric oxide, |
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priced its IPO at $11 a share on Nov. 5, 2003. The stock closed Friday, Jan. |
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23, 2004, at $8.98 a share -- down 18.4 percent from its initial offering |
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price. |
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Note: Merck Agreement |
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On December 3, 2003, the Company received the second milestone payment |
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of $5.0 million from Merck for advancing a lead nitric oxide enhancing |
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COX-2 inhibitor into human testing. |
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The Stock: |
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Estimated Consensus EPS: |
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52-week Price Range: |
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Dec./2002A: ($1.16) |
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High: $11.55 Low: $6.90 Recent: $8.98 |
Dec./2003E: ($0.50) |
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Number of brokers following the company: 3 |
Dec./2004E: ($0.60) |
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Average rating: "Strong Buy" |
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Dec./2005E: ($0.57) |
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Average price target: $16 a share |
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(deficit) |
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Pharmion (PHRM) |
Mrkt |
Price / |
Price / |
Price / |
Price / |
Price |
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Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
1-30--03 |
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Pharmion (PHRM) |
405 |
13.3 |
-11 |
3.5 |
3.5 |
16.92 |
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Pharmion (Nasdaq: PHRM) a Boulder, Colorado-based pharmaceutical company |
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engaged in the acquisition, development and commercialization of |
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pharmaceutical products for the treatment of oncology and hematology |
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patients, priced its IPO at $14 a share on Nov. 5, 2003. The stock closed |
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Friday, Jan. 23, 2004, at $16.81 a share -- up 20.1 percent from its initial |
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offering price. |
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The Stock: |
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Estimated Consensus EPS: |
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52-week Price Range: |
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Dec./2002A: ($2.47) |
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High: $17.89 Low: $11 Recent: $16.81 |
Dec./2003E: ($2.94) |
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Number of brokers following the company: 4 |
Dec./2004E: ($1.94) |
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Average rating: "Strong Buy" |
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Dec./2005E: ($0.43) |
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Average price target: $19.50 a share |
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(deficit) |
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Ratio comparison summary -- based on annualizing last reported quarter's results |
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NAME/symbol |
Mrkt |
Price / |
Price / |
Price / |
Price / |
Price |
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Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
1-30--03 |
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Myogen (MYOG) |
473 |
197.1 |
-12 |
4.4 |
4.5 |
17.87 |
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NitroMed (NTMD) |
224 |
no rev* |
-16 |
2.8 |
2.9 |
8.76 |
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Pharmion (PHRM) |
405 |
13.3 |
-11 |
3.5 |
3.5 |
16.92 |
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EyetechPharm(EYET) |
809 |
20 |
-20 |
4.1 |
4.1 |
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DJ Pharmaceuticals Index: |
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One-Year Percentage Change: |
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52-Week High: 305.08 (6/17/03) |
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Pharmaceuticals Index: up 11.6 percent |
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52-Week Low: 249.23 (3/11/02) |
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Nasdaq Composite Index: up 55.5 percent |
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Dec. 31, 2002: 267.08 |
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Dec. 31, 2003: 286.27 |
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Recent: 292.62 (1/23/04) |
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