Maroon Investment Fund by hilen

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									Maroon Investment Fund
   Biotechnology and Pharmaceutical
        Industry Research Group
              Joseph Nasr
Biotechnology: Industry Outlook
 Biotech fundamentals were solid in the
  third quarter of 2003.
 Median revenue growth of 40%, net
  income growth of 63% - acquisitions
  helped to boost the performance in the
  quarter




                Source: Lehman Brothers, Inc
           Biotechnology:
       Industry Outlook - 2004
 Full year forecast median revenue growth
  in 2003 of 37%, net income growth of
  44%
Forecasting median revenue growth rate of
  22%
 Median net income growth of 44%




                Source: Lehman Brothers, Inc
   Amgen Inc: Company Profile
Amgen, Inc. is a global biotechnology company that
  discovers, develops, manufactures and markets human
  therapeutics based on advances in cellular and molecular
  biology. In July 2002, the Company completed its
  acquisition of Immunex Corporation, a biotechnology
  company dedicated to developing immune system
  science to protect human health. The Company markets
  human therapeutic products including Epogen, Aranesp,
  Neupogen, Neulasta and Kineret. Amgen acquired the
  rights to Enbrel as a result of the Immunex acquisition.
  Enbrel is marketed with Wyeth under a co-promotion
  agreement.


                      Source: finance.yahoo.com
     Amgen Inc: Product Line
 Aranesp – For the treatment of chemotherapy-
  induced anemia in patients with nonmyeloid
  malignancies and the treatment of anemia in
  patients on dialysis and not on dialysis
 Neulasta - For the prevention of infection in
  cancer patients undergoing certain types of
  chemotherapy
 Neupogen - For the prevention of infection in
  cancer patients undergoing certain types of
  chemotherapy

                    Source: Amgen, Inc
     Amgen Inc: Product Line
 Epogen - For the treatment of anemia
  associated with chronic renal failure in
  dialysis patients
 Enbrel - For the treatment of rheumatoid
  arthritis, polyarticular-course juvenile
  rheumatoid arthritis and psoriatic arthritis
 Kineret - For the treatment of signs and
  symptoms of rheumatoid arthritis

                   Source: Amgen, Inc
    Amgen Inc: in the pipeline
 Enbrel in phase IV of approval for treating
  psoriasis
 Two products in phase III: Cincalet
  hydrochloride and Palifermin
 Six products in phase II: Epratzumab,
  ABX-EGF, PEG-sTNF-R1, Osteoprotegerin,
  Cincalet hydrochloride, GDNF


                   Source: Amgen, Inc
            Amgen: 3Q03
 Beat Earnings per share (EPS)
  expectations by $0.02
 Sales driven by Aranesp and Epogen
 Consistently spend 18 to 20% revenue on
  R&D
 $5 billion in cash and securities and $3
  billion in convertible debt


                Source: Lehman Brothers
Amgen, Inc




  Source: bigcharts.com
Amgen: Stock Recommendation
   Currently trading at $58.89
   52-wk range: 46.56-72.37
   Mean price target $79.08
   Morningstar Fair Value Estimate $63.00
   Recommend buy now, sell at $67
Pharmaceutical Industry Outlook
 Earnings projected to increase by end of
  2003 and through 2004
 No major drugs patents expire until 2006,
  boosting industry by protecting from
  generics
 Number of new molecular compounds has
  dropped off, but industry focusing on
  tampering with blockbusters to keep
  patent

                Source: Standard and Poor's
Pharmaceutical Industry Outlook




           Source: Standard and Poor's
Pharmaceutical Industry Outlook
 Pipeline for industry currently holds over
  1,100 drugs
 Most profitable of these are drugs used for
  treatment of chronic illness
 Total global pharmaceutical sales have
  grown by over 8%; US accounts for 51%
  of global market
 Keys to success tend to be developing
  blockbuster drugs and marketing

                 Source: Standard and Poor's
    Pharmaceutical Industry Outlook:
     Effect of Medicare Drug Benefit
 This law just passed in the House and
  Senate last week
 Essentially, it should increase the volume
  of drugs purchased, but revenues will not
  increase by much
 Law does not go into effect until late 2004
  so any jumps in industry related to this
  are purely speculative

                  Source: Merrill Lynch
     Pfizer, Inc: Company Profile
Pfizer Inc. is a research-based, global pharmaceutical company. The
    Company discovers, develops, manufactures and markets
    prescription medicines for humans and animals, as well as many
    consumer products. The Company operates in two business
    segments: Pharmaceuticals and Consumer Products. The
    Pharmaceuticals segment includes prescription pharmaceuticals for
    treating cardiovascular diseases, infectious diseases, central nervous
    system disorders, diabetes, urogenital conditions, allergies, arthritis
    and other disorders; products for livestock and companion animals,
    and the manufacture of empty soft-gelatin capsules. The Consumer
    Products segment includes self-medications for oral care, upper
    respiratory health, eye care, skin care, gastrointestinal health and
    other products. In April 2003, the Company merged with Pharmacia
    Corporation. The combined operations of the companies enlarges
    Pfizer's portfolio of consumer healthcare brands and expands its
    animal health business.



                             Source: finance.yahoo.com
        Pfizer, Inc: Product Line,
            Prescription Drugs
 Aricept - #1 prescribed medication for
  Alzheimer’s
 Bextra - provides relief of the pain,
  inflammation, and stiffness of osteoarthritis and
  adult rheumatoid arthritis Celebrex
 Diflucan – only oral treatment for yeast
  infections on market
 Lipitor – market leading cholesterol lowering
  medication

                  Source: Pfizer, Inc (www.pfizer.com)
       Pfizer, Inc: Product Line,
           Prescription Drugs
 Relpax – treatment of migraines
 Viagra – erectile dysfunction
 Viracept – treatment of HIV infection
 Zoloft – treatment of depression, social
  anxiety disorder, PTSD, panic disorder,
  OCD
 Zyrtec – allergy medication


               Source: Pfizer, Inc (www.pfizer.com)
         Pfizer, Inc: Product Line,
         Over the Counter Drugs
   Benadryl
   Cortizone
   Desitin
   e.p.t.
   Listerine
   Lubriderm
   Neosporin
   Rolaids
   Sudafed
   Visine

                Source: Pfizer, Inc (www.pfizer.com)
    Pfizer, Inc: In the Pipeline
 Cl-1033 – inhibits erbB receptor which is
  found in 90% of cancerous cells of tumors
 Zithromax – using in addition to
  chloroquine is effective against drug-
  resistant forms of malaria
 UK-427,857 – blocks specific receptor in
  cells to keep HIV from infecting cells
 Capravirine – helps patients with mutated
  form of HIV virus

               Source: Pfizer, Inc (www.pfizer.com)
    Pfizer, Inc: In the Pipeline
 Varenicline – eases cravings and
  withdrawal symptoms while blocking
  reinforcing effects of nicotine
 Torcetrapib/Lipitor – combination of LDL
  lowering and HDL increasing drugs that
  will greatly lower CV risks



                Source: Pfizer, Inc and Lehman
                            Brothers
              Pfizer, Inc.
 Acquired Pharmacia Corp in April 2003
 Total sales for 2003 projected at $46
  billion – PFE now towers over competitors
  in revenues, earnings, and R&D spending
 PFE accounts for 11% of global market
 Has 10 drugs with annual sales of more
  than $1 billion, including four with more
  than $2 billion and one with $8 billion
  (Lipitor)

                Source: Standard and Poor's
          Pfizer, Inc: 3Q03
 Continued growth in revenue
 Sales up 80% from 2Q03 and 56% from
  3Q02
 Beat consensus analyst earnings estimate
  by 6.8%
 Spends 31.3% of revenue on R&D




              Source: Morningstar, Mergent Online
Pfizer, Inc




  Source: bigcharts.com
Pfizer, Inc: Stock Recommendation
   Currently trading at $34.03
   52-wk range: 27.90-36.92
   Mean price target $39.29
   Morningstar Fair Value Estimate $40.00
   Recommend buy now, sell at around
    $40.00

								
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