Replies to post #13451 on Naz News, Gappers and FLE's

[mcmike]

SRDX update: Rebound once GDT accepts JNJ/ rejects BSX offer

Guidant Accepts New $24B J&J Offer
Shareholder Vote Set For Jan. 31
http://www.guidant.com/news/600/web_release/nr_000608.shtml

my favorite stock, SRDX, has been knocked down, in part due to the BSX/JNJ battle over GDT. This should be an easy buy once the fight is resolved. Were BSX to prevail, GDT's drug eluting stent relationship with SRDX could be severed, though GDT has yet to bring their stent to market, so that this is not impactful to SRDX at the moment. In fact, JNJ's Cypher stent share of the U.S. market is up to 46% for Q395 up from 35% from the year before.

SRDX was trading near 40 when this news hit:
Guidant Acknowledges Receipt of Boston Scientific Proposal
http://www.guidant.com/news/500/web_release/nr_000599.shtml

SRDX's non-stent biz is growing and the street doesn't value SRDX outside the DES part of the biz.

I recently received SRDX 10K and will try to print another table !:

 
 parameter           2001 2002 2003 2004 2005  
 total revenue(mil)  22.7 29.5 43.2 49.7 62.4  
 operating margin%   33.3 36.3 47.7 54.2 57.3 
 dilutedEPS           .38  .44  .78  .99 1.27  
 newcustomer licenses   9    8   14   17   20  
 patentappsfiled        8   17   13   25   51  
 R&Dspending (mil)    8.0  9.7 12.0 12.6 16.1

They acquired InnoRx in January and are entering a PhaseI trial for an intrvitreal implant to treat age-related macular degeneration and diabetic macular edema:
http://www.surmodics.com/pageDetail.aspx?pageId=70&menuId=72#InnoRxSustained

Examples of existing strategic relationships with SurModics:

Collaboration with Novocell on islet cell encapsulation for diabetes treatment (picture an implantable tiny hackysack that is biologically inert vis a vis your body's rejection mechanisms that acts as an artificial insulin-producing islet cell through its seams as your metablolism requires)
http://www.surmodics.com/pageDetail.aspx?pageId=20&menuId=20

They are working with the Donaldson Co. to create a cell culture matrix
http://www.investorshub.com/boards/read_msg.asp?Message_id=6663070&txt2find=donaldson

They have made equity investments in 2 other companies: OctoPlus and TheropeutiX

Read the Shareholder Letter from the 2005 Annual Report and the rest of the 10K if you want to learn about a really great company:
http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001206774%2D05%2D002012%2Etxt&FilePath....