Cowen Report
URACRYST SALES PROJECTION 7-May-10 12:41 pm
PART 1-LXCF.OB...Cohen just completed a write up on Watson Pharma with a rec to outperform. Part of that write up, and supporting the projected numbers, includes Uracryst. Cohen devotes 5 or 6 paragraphs to Uracryst and here is the meat (below) of the matter--pls keep in mind that Stellar posted sales of $3m vs $2m in last qtr and that rev growth of 39% was due in large part to Uracryst sales which are already occurring in a number of countries and more countries have been licensed since the end of last qtr. Most spectacular of all for a $1 drug/bio/medical stock is that they had positive net inc of $238,000 (would have been more except for $163,000 in non cash stock options and amortization expenses)....these numbers alone---rapidly rising revenues and net inc plus 3rd year in a row of cash positive operations--warrant a price of $3-$4.00 when factoring in rapid positive growth of all ratios. When you add Watson's agreement with Stellar to the mix which includes approx $7.5m more in milestones to be paid to Stellar as certain points are met along the way and then the FDA approval of Uracryst (has already been approved in many countries incl Canada and I think UK plus others--chances of Watson not getting final approval are to me nil) then the whole ballgame changes ref the numbers. Cohen estimates $200m in peak annual sales...that is them talking, not me. Do you have any idea what that will do to this stock price once in gear?? Pick a number--$15-$20??? I have no problem with saying that assuming Cohen's est is in the ballgame and they should know.
