Biotech Values

[DewDiligence]

Lap-Band info from AGN’s 4Q11 CC:

http://seekingalpha.com/article/337081-allergan-management-discusses-q4-2011-results-earnings-call-transcript

LAP-BAND sales in the U.S. are being impacted both by high unemployment rates, as well as reimbursement barriers and increasing co-pays, as employers shift cost to their employees… In the overall, U.S. bariatric market, which we estimate declined 6% year-to-date in November, bands declined in procedure share to 40% in November from 52% a year earlier, whilst bypass held steady at 34% and sleeve gastrectomy doubled from 11% to 22%.

Based on overseas experience, we believe that sleeve will reach a plateau. The only bright share data point is that LAP-BAND increased its share of the band market to 83% [i.e. JNJ’s Realize band had a 17% share].