SurModics Inc (SRDX)

[shears]

I find it reassuring (perhaps just drinking the Kool-aid here) that SRDX management is continually expanding the pieline and signing up new clients and new products are being released steadilly. The pipeline of future unreleased products is growing faster then current revenues. There are some potential heavy hitters in the pipeline and profit margins in the opthalmalogy realm will be substantially higher since they own the platform as well as the coating. The 6 other stents hydrophyllic coating revenue will help mitigate the loss of Cypher revenue when the time comes. Non stent business is growing briskly and they have a lot of cash for aquisitions to help the bottom line. Personally, I think loss of future Cypher revs is priced in. There is still plenty of room for surface modification in the device industry and they will retain the leadership role as far ahead as I can see. I think the upside long term is worth the risk of the potential blips ahead. This company has an impressive track record of growth and management is certainly not sitting still, IMO.

Sciz