Insmed Inc (INSM)

[drbio45]

Tercica from harris nessbitt
(TRCA-NASDAQ)

This idiot says nothing of their failed lot or the fact that Insmed's sales after one month on the market is higher then trca's. Mentions their clinical trials as a way to get market share from Insmed. What moronic parent will put their kid on one of the trials with IPLEX on the market. this is sick shit



Stock Rating: Outperform(S)
Industry Rating: Market Perform
August 9, 2006
Biotechnology
Thomas Shrader, Ph.D., CFA
BMO Capital Markets Corp.
212-885-4179
[e-mail]
Vatnak Vat-Ho
212-885-4015
[e-mail]
2Q06 Earnings; Increlex Trials to Complete
Enrollment in 2007
Event
Tercica reported 2Q06 loss per share of $0.39 on a GAAP basis versus our
estimate of a loss of $0.43 per share, differing on slightly lower-thanexpected
expenses. The cross-licensing agreement with Ipsen is still expected
to close by the end of the year, pending TRCA shareholder approval and
antitrust clearance. Tercica ended 2Q06 with $66.1 million in cash and
equivalents.
Impact
Tercica gave enrollment updates on two ongoing Increlex trials that we
believe will be important in capturing market share from Insmed’s iPlex.
MS-308, a once-daily dosing trial of Increlex, was 60% enrolled as of
7/31/06, and completion of enrollment is expected in early 2007. MS-301, an
Increlex trial in a less severely impacted population (Primary IGFD versus
Severe Primary IGFD), was 57% enrolled as of 7/31/06, and completion of
enrollment is expected near mid-2007.
Forecasts
We have updated our model in light of earnings.
Valuation
Our 12-month price target of $12 is based on 30x our 2011 non-GAAP (exoption
expensing) EPS estimate of $0.94, discounted four years at 40%.
Recommendation
We reiterate our rating of OUTPERFORM. We remind investors that the
largest potential market is the less severe form of IGF-1 deficiency, a
population in which Tercica is currently conducting a Phase IIIb trial but
where Insmed has no plans to generate clinical data, as far as we know.
Changes Annual EPS Annual FCF Quarterly EPS
2006E -$1.89 to -$1.50 2006E -$1.91 to -$1.83 Q3/06E -$0.77 to -$0.41
2007E -$1.87 to -$1.12 Q4/06E -$0.38 to -$0.37
Securities Info
Price (8-Aug) $5.19 Target Price $12
52-Wk High/Low $13/$3 Dividend --
Mkt Cap (mm) $195 Yield --
Shs O/S (mm, BASIC) 37.5 Float O/S (mm) 29.5
Options O/S (mm) na ADVol (25-day, 000s) 228
Price Performance

120
TERCICA INC (TRCA)
Price: High,Low,Close(US$) Relative to S&P 500
2002 2003 2004 2005 2006
0
6
Valuation/Financial Data
(FY-Dec.) 2004A 2005A 2006E 2007E
EPS Pro Forma -$2.12 -$1.51 -$1.50↑ -$1.12↑
P/E nm nm
First Call Cons.
EPS GAAP -$2.12 -$1.51 -$1.94 -$1.96
FCF -$1.82 -$1.51 -$1.83↑ -$1.88
P/FCF nm nm
EBITDA ($mm) -$41 -$47 -$77 -$95
EV/EBITDA nm nm
Rev. ($mm) $0 $0 $1 $43
EV/Rev 115.6x 2.7x
Cash Burn -$35 -$46 -$73 -$95
Quarterly EPS 1Q 2Q 3Q 4Q
2005A -$0.32 -$0.40 -$0.37 -$0.46
2006E -$0.37A -$0.35A -$0.41↑ -$0.37↑
Balance Sheet Data (03/31/06)
Net Debt ($mm) -$79 TotalDebt/EBITDA nm
Total Debt ($mm) $0 EBITDA/IntExp na
Net Debt/Cap. nm Price/Book 2.5x
BMO Capital Markets Tercica
Page 2 August 9, 2006
Details & Analysis
Tercica reported 2Q06 loss per share of $0.39, versus our estimate of a loss of $0.43 per share
on slightly lower-than-expected expenses. The cross-licensing agreement with Ipsen is still
expected to close by the end of the year, pending TRCA shareholder approval and antitrust
clearance. Tercica ended 2Q06 with $66.1 million in cash and equivalents.
Tercica gave enrollment updates on two ongoing Increlex trials that we believe will be
important in capturing market share from Insmed’s iPlex. MS-308, a once-daily dosing trial of
Increlex, was 60% enrolled as of 7/31/06, and completion of enrollment is expected in early
2007. MS-301, an Increlex trial in a less severely impacted population (Primary IGFD versus
Severe Primary IGFD), was 57% enrolled as of 7/31/06, and completion of enrollment is
expected near mid-2007.
Exhibit 1. Increlex Launch Data
End of 1Q06 End of 2Q06 Change
Cumulative Increlex Rx 65 154 137%
Avg. Weekly NRx 5.0 6.8 36%
Patients who have been identified but
not yet on therapy ~210* 262
* Management previously stated that about 300 patients had been identified as eligible for Increlex therapy, and that about 30% of those were on
therapy at the end of 1Q06.
Source: Company data and BMO Capital Markets estimates.
Updates to our model. Management guidance includes: Increlex revenue of about $1 million
in 2006, cash burn of about $63-$69 million in 2006 (excluding costs of the Ipsen transaction),
and 2011 revenue of $250 to $300 million (about evenly split between Increlex and Somatuline
Autogel).
Valuation. Our 12-month price target of $12 is based on 30x our 2011 non-GAAP (ex-option
expensing) EPS estimate of $0.94, discounted four years at 25%. We have reduced our discount
rate to 25% (from 30%) to reflect what we believe to be a more robust balance sheet and
validation of Increlex’s market potential. Risks include failure to compete effectively against
iPlex, manufacturing problems with Increlex or Somatuline Autogel, regulatory delays for
Increlex or Somatuline Autogel, and negative data from MS-301.
Other companies mentioned (priced as of the close on August 8, 2006):
Insmed (INSM, $1.18, Not Rated)
Ipsen (Euronext:IPN, EUR 28.70, Not Rated)
BMO Capital Markets Tercica






































Page 3 August 9, 2006 Tercica Quarterly Income Statement
(Thousands, except per-share data)
2005 2006E
Revenues 2003 2004 1QA 2QA 3QA 4QA 2005 1QA 2QA 3QE 4QE 2006E 2007E 2008E 2009E 2010E 2011E 2012E
Increlex - US Sales, net – – – – – – – $ 85 $ 1 66 $ 2 70 $ 4 79 $ 1,000 $ 8 ,694 $ 18,257 $ 30,353 $ 77,160 $ 116,244 $ 147,947
Increlex - EU Royalties, net – – – – – – – – – – – – $ 2,898 $ 4 ,869 $ 6,390 $ 16,103 $ 32,407 $ 44,384
Somatuline Autogel - US & Canada – – – – – – – – – – – – $ 31,816 $ 54,087 $ 86,538 $ 112,500 $ 135,000 $ 148,500
License fees and milestones – – – – – – – – – – – – – – – – – –
Total Revenues – – – – – – – $ 85 $ 1 66 $ 2 70 $ 4 79 $ 1,000 $ 43,408 $ 77,213 $ 123,281 $ 205,763 $ 283,651 $ 340,831
Cost of Goods Sold – – – – – – – 83 557 227 281 1 ,148 1 6,189 2 8,061 4 4,352 6 9,695 9 3,866 110,744
Gross Profit – – – – – – – $ 2 $ (391) $ 43 $ 1 98 $ (148) $ 27,218 $ 49,151 $ 78,929 $ 136,069 $ 189,785 $ 230,087
R&D 1 9,246 2 7,918 4 ,871 6 ,320 5 ,681 4 ,716 21,587 4 ,201 4 ,048 4 ,858 6 ,893 20,000 2 5,100 2 8,865 3 1,752 3 3,339 3 5,006 3 6,756
Milestone payments – – – – – – – – – – – – – – – – – –
SG&A 4 ,834 12,552 4 ,179 6 ,458 6 ,393 8 ,882 25,913 9 ,816 9 ,487 10,910 1 2,287 4 2,500 6 0,000 6 9,000 7 5,900 7 9,695 8 3,680 8 7,864
Acquired IPR&D 1 ,670 1 ,417 – – – – – – – – – – – – – – – –
Total Costs & Expenses 2 5,750 41,887 9 ,050 12,778 1 2,074 1 3,598 4 7,500 1 4,100 1 4,092 1 5,995 1 9,462 6 3,648 101,289 125,926 152,004 182,729 212,552 235,364
Operating Income ( 25,750) ( 41,887) (9,050) ( 12,778) ( 12,074) ( 13,598) ( 47,500) ( 14,015) ( 13,926) ( 15,725) ( 18,983) ( 62,648) ( 57,882) ( 48,714) ( 28,722) 23,035 71,100 105,467
Interest Income (Expense), Net 327 885 (58) 377 556 392 1 ,267 863 889 250 250 2 ,252 1 ,000 1 ,500 3 ,000 4 ,500 6 ,000 7 ,500
Net Income before taxes ( 25,423) ( 41,002) (9,108) ( 12,401) ( 11,518) ( 13,206) ( 46,233) ( 13,152) ( 13,037) ( 15,475) ( 18,733) ( 60,396) ( 56,882) ( 47,214) ( 25,722) 27,535 77,100 112,967
Income Tax (Credit) – – – – – – – – – – – – – – – 8 ,260 23,130 3 3,890
Non-GAAP Net Income $ ( 25,423) $ ( 41,002) $ ( 9,108) $ (12,401) $ ( 11,518) $ ( 13,206) $ ( 46,233) $ ( 13,152) $ ( 13,037) $ ( 15,475) $ ( 18,733) $ ( 60,396) $ ( 56,882) $ ( 47,214) $ ( 25,722) $ 19,274 $ 53,970 $ 79,077
Net impact of SFAS 123R – – – – – – – $ ( 1,117) $ ( 1,647) $ ( 1,100) $ ( 1,100) $ ( 4,964) $ ( 4,500) $ ( 4,500) $ ( 4,500) $ ( 3,150) $ ( 3,150) $ ( 3,150)
License fees, milestones, payments – – – – – – – – – $ (12,500) – $ (12,500) $ ( 37,600) $ 18,800 – – – –
Dividend related to beneficial conversion ( 44,153) – – – – – – – – – – – – – – – – –
GAAP Net Income (loss) $ ( 69,576) $ (41,002) $ ( 9,108) $ (12,401) $ (11,518) $ (13,206) $ (46,233) $ (14,269) $ (14,684) $ (29,075) $ (19,833) $ (77,860) $ (98,982) $ (32,914) $ (30,222) $ 16,124 $ 50,820 $ 75,927
Non-GAAP EPS (Basic) $ (5.59) $ (2.12) $ (0.32) $ (0.40) $ (0.37) $ (0.42) $ (1.51) $ (0.37) $ (0.35) $ (0.41) $ (0.37) $ (1.50) $ (1.12) $ (0.92) $ (0.46) $ 0 .34 $ 0 .94 $ 1 .37
Non-GAAP EPS (Diluted) $ (1.41) $ (2.12) $ (0.32) $ (0.40) $ (0.37) $ (0.42) $ (1.51) $ (0.37) $ (0.35) $ (0.41) $ (0.37) $ (1.50) $ (1.12) $ (0.92) $ (0.46) $ 0 .34 $ 0 .94 $ 1 .37
GAAP EPS $ (3.85) $ (2.12) $ (0.32) $ (0.40) $ (0.37) $ (0.42) $ (1.51) $ (0.40) $ (0.39) $ (0.77) $ (0.40) $ (1.94) $ (1.96) $ (0.64) $ (0.54) $ 0 .28 $ 0 .89 $ 1 .31
Basic Shares 12,448 1 9,302 2 8,129 3 1,257 3 1,394 3 1,534 3 0,590 3 5,641 3 7,508 3 7,546 5 0,100 4 0,199 5 0,601 5 1,107 5 6,057 5 6,618 5 7,184 5 7,756
Diluted Shares 1 8,056 19,302 28,129 31,257 31,394 31,534 30,590 35,641 37,508 37,546 50,100 40,199 50,601 51,107 56,057 56,618 57,184 57,756
Margin Analysis
Revenue 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Gross Margin N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. -15% 63% 64% 64% 66% 67% 68%
R&D N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. 2000% 58% 37% 26% 16% 12% 11%
SG&A N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. 4250% 138% 89% 62% 39% 30% 26%
Operating Margin N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. 11% 25% 31%
Pretax Margin N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. 11% 25% 31%
Tax Rate 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 30% 30% 30%
Net Margin N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. -61% -21% 9% 19% 23%
Percentage Change
Revenue N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. 4241% 78% 60% 67% 38% 20%
Gross Profit N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. -18439% 81% 61% 72% 39% 21%
R&D 875% 50% -14% -12% -24% -38% -23% -14% -36% -14% 46% -7% 26% 15% 10% 5% 5% 5%
SG&A 144% 100% 122% 91% 83% 134% 106% 135% 47% 71% 38% 64% 41% 15% 10% 5% 5% 5%
Total Costs and Expenses 185% 63% 16% 9% 10% 19% 13% 56% 10% 32% 43% 34% 59% 24% 21% 20% 16% 11%
Operating Income N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. 209% 48%
Pretax Income N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. 180% 47%
Net Income N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. 180% 47%
EPS (Diluted) N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. N.M. 177% 45%
N.M. - Not Meaningful.
Source: Company data and BMO Capital Markets estimates.
BMO Capital Markets Tercica
Page 4 August 9, 2006
Tercica Condensed Cash Flow Statement
(Thousands)
Operating Activities 2003 2004 2005 2006E 2007E 2008E 2009E 2010E 2011E 2012E
Net Income (Loss) (25,423) (41,002) (46,233) (60,396) (56,882) (47,214) (25,722) 19,274 53,970 79,077
Depreciation and amortization 9 2 4 46 7 07 400 4 00 4 00 400 400 400 400
Net Adjustments 1 ,518 3 ,304 2 ,649 (10,400) (35,500) 2 0,900 2,100 2,100 2,100 2,100
Net Changes in Assets and Liabilities: 3 ,581 2 ,535 (489) - - - - - - -
Net Cash from Operations (20,231) (34,717) (43,366) (70,396) (91,982) (25,914) (23,222) 21,774 56,470 81,577
Investing Activities
Purchases of property and equipment (2,298) (407) (2,838) (3,000) (3,000) (3,000) (3,000) (3,000) (3,000) (3,000)
Proceeds from sale of equipment - - 3 00 - - - - - - -
Net Change in Securities (35,853) (3,019) (5,166) - - - - - - -
Net Cash from Investing (38,151) (3,426) (7,704) (3,000) (3,000) (3,000) (3,000) (3,000) (3,000) (3,000)
Financing Activities
Net proceeds from issuance of Class A & B shares - - - - - - - - - -
Liquidating distribution to Tercica Limited shareholders - - - - - - - - - -
Net proceeds from convertible notes - - - 25,000 5 2,600 - - - - -
Net proceeds from issuance of Shares 4 3,784 5 0,020 5 1,142 109,500 4 5,000 3 6,680 - - - -
Other financing activities, net 6 77 3 00 6 19 - - - - - - -
Net Cash from Financing 4 4,461 5 0,320 5 1,761 134,500 9 7,600 3 6,680 - - - -
Net Increase in Cash and Cash Equivalents (13,921) 12,177 691 61,104 2,618 7,766 (26,222) 18,774 53,470 78,577
Cash and cash equivalents, beginning of period 1 5,870 1 ,949 1 4,126 14,817 7 5,921 7 8,539 86,305 60,083 78,857 132,327
Cash and cash equivalents, end of period $ 1 ,949 $ 14,126 $ 14,817 $ 75,921 $ 78,539 $ 86,305 $ 60,083 $ 78,857 $ 132,327 $ 210,904
Cash, CE, and MS, end of period $ 3 7,313 $ 52,001 $ 58,626 $ 119,730 $ 122,348 $ 130,114 $ 60,083 $ 78,857 $ 132,327 $ 210,904
Cash Burn (a) $ (22,529) $ (35,124) $ (46,204) $ (73,396) $ (94,982) $ (28,914) $ (26,222) $ 18,774 $ 53,470 $ 78,577
Source: Company data and BMO Capital Markets estimates.
BMO Capital Markets Tercica
Page 5 August 9, 2006
TERCICA INC (TRCA)
Last Daily Data Point: August 4, 2006
4
6
8
10
12
4
6
8
10
12
Quarterly Price (US$)
1980 1985 1990 1995 2000 2005
60
80
100
60
80
100
TRCA Relative to S&P 500
TRCA Relative to Biotechnology
1980 1985 1990 1995 2000 2005
-2
0
-0.01
0.01
EPS (4 Qtr Trailing) - (US$)
Price / Earnings
2
4
6
8
10
12
14
16
18
2
4
6
8
10
12
14
16
18
1) OP
2) Mk3t) OP
Target Price(US$)
Share Price(US$)
2004 2005 2006
20
40
60
80
100
120
140
20
40
60
80
100
120
140
TRCA Relative to S&P 500
TRCA Relative to Biotechnology
2004 2005 2006
-100
100
-100
100
TRCA Relative to S&P 500 Y/Y (%)
TRCA Relative to Biotechnology Y/Y (%)
TRCA - Rating as of 1-Jun-04 = OP
Date Rating Change Share Price
1 1-Jun-04 NR to OP $9.50
2 13-Dec-05 OP to Mkt $9.90
3 21-Feb-06 Mkt to OP $6.78
BMO Capital Markets Tercica
Page 6 • August 9, 2006
Important Disclosures
Analyst's Certification
I, Thomas Shrader, Ph.D., CFA, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities
or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views
expressed in this report.
Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets Corp, BMO
Nesbitt Burns, and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on
effectiveness in generating new ideas and convincing clients to act on them, performance of recommendations, accuracy of earnings estimates, and
service to clients.
Company Specific Disclosure
BMO Capital Markets Corp. has provided advice for a fee with respect to this company within the past 12 months: No
BMO Capital Markets Corp. has undertaken an underwriting liability with respect to this company within the past 12 months: No
BMO Capital Markets Corp. has provided investment banking services with respect to the company within the past 12 months: No
BMO Capital Markets Corp. or its affiliates owns 1% or more of any class of common equity securities of the company: No
BMO Capital Markets Corp. or its affiliates makes a market in the security: Yes
BMO Capital Markets Corp. or its affiliates managed or co-managed a public offering of securities of the company in the past 12 months: No
BMO Capital Markets Corp. or its affiliates received compensation for investment banking services from the company in the past 12 months: No
BMO Capital Markets Corp. or its affiliates or its officers own warrants or options: No
Company is a client (or was a client) of BMO Capital Markets Corp. or an affiliate within the past 12 months: No
Employee, officer, or director of BMO Capital Markets Corp. is a member of the Board of Directors or an advisor or officer of this company: No
A member of the Board of Directors of Bank of Montreal is also a member of the Board of Directors or is an officer of this company: No
Analyst and/or associate who prepared this report is a member of the Board of Directors of this company or an advisor or officer of this company: No
A household member of the research analyst and/or associate who prepared this report is a member of the Board of Directors of this company or an
advisor or officer of this company: No
Analyst or associate who prepared this report or member of household of analyst or associate owns shares: No
Analyst or associate who prepared this report or member of household of analyst or associate owns warrants/options: No
BMO Capital Markets Corp. or its affiliates expects to receive or intends to seek compensation for investment banking services from the company in
the next three months: No
Analyst received compensation from the company in the past year: No
BMO Capital Markets Corp. or its affiliates received compensation for products or services other than Investment Banking Services from the company
in the past 12 months: No
Breakdown of Rating Distribution and Banking Clients
(As of June 30, 2006) Buy Hold Sell Unrated
% of total BMO Capital Markets Corp. coverage within
rating category 37.8% 52.0% 10.2% 0.0%
% of stocks within rating category for
which the Firm provided banking services
over the past 12 months 10.7% 4.8% 6.1% 0.0%
BMO Capital Markets Corp. Rating System
OP = Outperform: We believe the stock’s total return, including dividends, will exceed the S&P 500's return by more than 15%.
Mkt = Market Perform: We believe the stock’s total return will generally match that of the S&P 500.
Und = Underperform: We believe the stock’s total return will fall short of the S&P 500's return by more than 15%.
NR = Not rated.
(R) = Restricted: Dissemination of research is currently restricted.
In addition, apart from our stock ratings, we apply the Speculative investment (S) postscript to those companies that have de minimis revenue and whose
enterprise value appears to be contingent upon unprovable assumptions (e.g., the future approval of a drug or the successful completion of an oil well).
BMO Capital Markets Tercica
Page 7 • August 9, 2006
SECTOR RATINGS
OUTPERFORM - We believe the sector will outperform the S&P 500 Index.
MARKET PERFORM – We believe the sector’s return will generally match that of the S&P 500.
UNDERPERFORM - We believe the sector will underperform the S&P 500 Index.
Prior BMO Capital Markets Corp. Rating System (prior to June 19, 2006)
Our rating system prior to June 19, 2006, compared a stock’s expected performance with that of an index of comparable companies over a 9-15 month
horizon. Our sector ratings were based on the expected performance of the sector compared with that of a broader market index over the same time
period. Additionally, before June 19, 2006, we did not use the (S)-Speculative postscript.
PRIOR STOCK RATINGS
OUTPERFORM - We believe the stock’s total return, including dividends, will exceed the group average by over 15%.
NEUTRAL - We believe the stock’s total return will generally match the group average.
UNDERPERFORM - We believe the stock’s total return will fall short of the group average by more than 15%.
PRIOR SECTOR RATINGS
POSITIVE - We believe the sector will outperform the S&P 500 Index.
NEGATIVE - We believe the sector will underperform the S&P 500 Index.
Other Important Disclosures
Our analysts use various valuation methodologies including discounted cash flow, price/earnings (P/E), enterprise value/EBITDA, and P/E to growth
rate, among others. Risks to our price targets include failure to achieve financial results, product risk, regulatory risk, general market conditions, and the
risk of a change in economic conditions. For more specific information, please refer to http://research-us.bmocm.com.
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ADDITIONAL INFORMATION IS AVAILABLE UPON REQUEST
BMO Financial Group (NYSE, TSX: BMO) is an integrated financial services provider offering a range of retail banking, wealth management, and investment and
corporate banking products. BMO serves Canadian retail clients through BMO Bank of Montreal and BMO Nesbitt Burns. In the United States, retail clients are
served through Harris N.A. Investment and corporate banking services are provided in Canada and the US through BMO Capital Markets.
BMO Capital Markets is a trade name used by the Bank of Montreal investment banking group, which includes Bank of Montreal, BMO Nesbitt Burns Inc.,
and BMO Nesbitt Burns Ltée/Ltd. in Canada and BMO Capital Markets Corp. in the US. BMO Capital Markets Corp. is a member of SIPC. BMO Nesbitt
Burns Inc. and BMO Nesbitt Burns Ltée/Ltd. are members of CIPF. “Nesbitt Burns” is a registered trademark of BMO Nesbitt Burns Corporation Limited,
used under license. “BMO Capital Markets” is a trademark of Bank of Montreal, used under license. "BMO (M-Bar roundel symbol)" is a registered
trademark of Bank of Montreal, used under license.
©COPYRIGHT 2006 BMO CAPITAL MARKETS CORP.
A member of BMO Financial Group