-- Access Pharmaceuticals
-- ACTV, Inc.
-- Advanced Tissue Sciences, Inc.
-- AMBI, Inc.
-- Anika Therapeutics, Inc.
-- Aphton Corporation
-- ARIAD Pharmaceuticals, Inc.
-- Aronex Pharmaceuticals
-- BioTransplant, Inc.
-- BLC Financial Services, Inc.
-- C ME Run Corp.
-- Cell Therapeutics, Inc.
-- Collateral Therapeutics, Inc
-- Connetics Corporation
-- Corvas International, Inc.
-- CTC Communications Corporation
-- Cubist Pharmaceuticals, Inc.
-- Cypress Bioscience, Inc.
-- Datalink.net, Inc.
-- Dynamic Digital Depth, Inc.
-- Emisphere Technologies, Inc.
-- Exigent International, Inc.
-- HemaCare Corporation
-- ILEX Oncology, Inc.
-- JAWS Technologies, Inc.
-- Matrix Pharmaceuticals, Inc.
-- Maxim Pharmaceuticals, Inc.
-- Medarex, Inc.
-- Medix Resources, Inc.
-- Perficient, Inc.
-- Pharmos Corporation
-- Princeton Video Image, Inc.
-- Questcor Pharmaceuticals, Inc.
+ Update 02-04-00
+ Update 10-15-99
+ Financial Model
+ Update 08-12-99
+ Initial Opinion
-- SYNSORB Biotech Inc.
-- Valentis, Inc.
-- Vion Pharmaceuticals, Inc.
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SMALLCAPS ONLINE LLC
1285 Avenue of the Americas, 35th Floor
New York, New York 10019
Tel: 212.554.4158 • Fax: 212.554.4058
www.SmallCapsOnline.com
INVESTMENT RESEARCH
February 4, 2000
RECOMMENDATION: BUY
Questcor Pharmaceuticals, Inc. (AMEX: QSC)
Agreement with Dainippon to Sell Antibacterial Technology; Company to Focus on Commercialization and Development of Approved and Late-Stage Products
Reiterating BUY Recommendation
Market Data:
Exchange Symbol............................QSC (AMEX)
Stock Price at Initiation (2/03/00).............$2.44Price of Common Stock (10/14/99)................$1.94
30-Day Average Trading Volume..................93,000
Common Shares Outstanding................24.4 million
52-Week High/Low...........................$3.25/1.06
QSC Corporate Information
Address...........................26118 Research Road
....................................Hayward, CA 94545
Telephone..............................(510) 732-5551
Chairman, President & CEO........Charles J. Casamento
VP Finance & CFO.........................Hans Schmidt
Summary Investment Considerations
--------------------------------------------------
Questcor Pharmaceuticals, Inc. ("QSC") announced yesterday that it had agreed to license the worldwide rights of its ppGpp Degradase and Peptide Deformylase technology to Dainippon Pharmaceuticals Co. Ltd in exchange for $2 million cash payment and other considerations. QSC will retain co-promotional rights in the United States and Europe for any products which may result from this technology and should receive future milestone and royalty payments on future product sales.
QSC had been developing the ppGpp Degradase and Peptide Deformylase technology in order to produce a novel class of antibacterial drugs. QSC had originally entered into an agreement with Dainippon in January 1998 to co-develop a novel antibacterial technology. We believe that the agreement which was amended today is beneficial to QSC because, not only do they receive upfront and potential future payments, but they have also divested themselves of a pre-clinical program which we estimate saves them in excess of $4 million annually. QSC will now be able to devote its resources to the commercialization of its four approved products and to the development and commercialization of its late stage drugs. Based on the divestiture of its antibacterial program and the reduction in its burn rate, we are re-iterating our BUY recommendation on QSC for investors tolerant of the risks associated with small-cap equity investments.
Questcor Corporate Overview
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Questcor Pharmaceuticals, Inc. ("QSC"), resulting from the merger of Ribogene, Inc. and Cypros Pharmaceuticals, Inc., is positioning itself as a fully integrated specialty pharmaceutical company specializing in acute care and critical care products. QSC currently has four products on the market in North America, a fifth in Italy and two more late-stage products in Phase III trials. QSC’s strategy is to aggressively market existing approved products and use this cash flow to fund development of their pipeline and to in-license additional late-stage products. Marketed products include Ethamolin® for the treatment of esophageal ulcers, Glofil-125® and Inulin® for diagnosis of kidney function, and NeoFloTM an anti-infective application of QSC’s proprietary DermafloTM technology. Dermaflo is a topical, sustained release drug delivery system utilized in Neoflo for the administration of Neosporin® , intended for use in preventing infection of minor wounds.
CordoxTM, QSC’s lead product in development, is currently in Phase III trials for the treatment of sickle cell anemia, a blood disorder associated with over 100,000 crisis events annually. QSC has also completed Phase II trials for Cordox in the reduction of complications during coronary bypass surgery, a very large potential market. QSC is also conducting Phase II trials with CeresineTM, a drug similar in class to Cordox, for the treatment of brain related ischemic (oxygen-deprivation) conditions resulting from stroke or head injury. A third drug in development, EmitasolTM is in Phase III testing for nausea and gastrointestinal dysfunction associated with chemotherapy and diabetes. QSC has partnered with Shire Pharmaceuticals for the North American marketing and distribution of Emitasol. Emitasol is currently on the market in Italy under the name Pramidin® .
Risk Factors
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This section of the document is provided to remind potential investors to undertake a prudent level of due diligence prior to making an investment in the securities of QSC Pharmaceuticals, Inc. For a complete description of risks and uncertainties to QSC’s business, see the "Risk Factors" section in QSC’s SEC filings, which can be accessed directly from the SEC Edgar filings at www.SEC.gov on the Internet. Other potential risks include:
Market risk: Investors should consider technical risks common to many small-cap or micro-cap stock investments, including liquidity levels, small float, risk of dilution, dependence upon key personnel, dependence upon single products or technologies, and the strength of competitors that may be larger, better capitalized and hold dominant market positions.
Business risk: Competition in the industry can be characterized as intense. Many of QSC’s products are in the early stages of development. Additionally, QSC intends to license rights to its products to other companies. There can be no assurance that these licensing agreements will be completed, or that the market will accept any products under development.
Regulatory risk: There is no guarantee that QSC’s products will be approved by the US FDA or international regulatory bodies for marketing in the US or abroad.
For Additional Information
Contact SmallCaps Online LLC — 212-554-4158
Sources for Additional Information
--------------------------------------------------
The following are website addresses offering related information, and links to other sources of information.
www.Questcor.com Questcor corporate website (currently under development)
www.crinos-spa.com Crinos Indusria Farmacobiologics’ corporate website
www.dainippon-pharm.co.jp Dainippon Pharmaceutical’s corporate website
www.shire.com Shire Pharmaceutical Group’s corporate website
www.EnzyMed.com EnzyMed’s corporate website
www.SmallCapsOnline.com SmallCapsOnline’s site for Company information and research
www.sec.gov US Securities and Exchange Commission, with links to EDGAR filings
www.fda.gov US Food and Drug Administration homepage
www.WHO.int World Health Organization homepage
www.curtis1/sickle_cell_anemia.html Sickle Cell Anemia Disease Links
www.sicklecellsociety.org Sickle Cell Society homepage
www.emory.edu/PEDS/SICKLE/ Sickle Cell Disease site
The information in this report has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation by SmallCaps Online LLC for the purchase or sale of any securities. SmallCaps Online LLC or its affiliates has performed investment banking, consulting or other services for and may solicit investment banking, consulting or other business from, any company mentioned in this report. SmallCaps Online LLC, any of its affiliates or persons associated with SmallCaps Online LLC may at any time be long or short any of the securities referred to herein and may make purchases or sales thereof while this report is in circulation or posted on the SmallCaps Online LLC website at www.SmallCapsOnline.com. This material or any portion thereof, may not be reproduced without prior permission from SmallCaps Online LLC. SmallCaps Online LLC is not responsible for the contents of this document that is intended for electronic transmission and could be thus subjected to tampering or alteration. Copyright © 2000 by SmallCaps Online LLC. All rights reserved.
Das war mal ein versuch wie das einfügen eines textes geht.
sind infos zu QSC.