CATG - Extremely undervalued on basis of Humira royalties alone.
A few facts about CATG: Enterprise value of 314M (345M cash, 51.46M shares). In litigation with Abbott over percentage of royalties it gets on Humira. Abbott says 2%, CATG says over 5%. CATG won the first legal round. Abbott is appealing.
Abbott just reported 2d quarter sales for Humira of 321M, up 58.4% (603M for first half, up 71.5%). Said earlier in the year it expects Humira sales to be over 2 Billion shortly.
Additional major indications expected: S&P expects approval of Humira in psoriatic arthritis setting in 2d half '05, believes it could be approved for Crohns and psoriasis in '07.
On 6/27/05 EMEA recommended approval as first line treatment of moderate to severe early rheumatoid arthritis as well as psoriatic arthritis. Expected European Commission authorization decision expected at end of September.
