CRXL by Ron Garren, M.D, @Bio Insight
by: ellie1690 (F/Maryland, USA) 02/08/04 10:22 pm
Msg: 6247 of 6254

Looks like we may see CRXL move tomorrow! Please read below. Just received from email "paid subscription"

Recent publicity about a new deadly Flu virus with documented transmission from birds to humans and now possibly human-to-humans brings to prominence the possibility of a pandemic. Our current vaccine technology is inadequate to handle this kind of problem. This bodes well for Crucell (CRXL—see archives) a small European company with the best new cell-based platform for producing vaccines.

CRXL has a well documented human cell line (PER.C6) for the production of vaccines. This eliminates the problem of people with allergies to eggs (current Flu vaccines are produced in chicken eggs) and more importantly simplifies and expedites the process of producing the vaccine. CRXL recently signed a deal with Aventis the largest Flu vaccine maker and very smartly kept
the Japanese market (about 15% of the total) for themselves. Vaccines not
medicines will be the only way to handle the next pandemic and there is no question this is coming and without a quick vaccine response it will kill millions.

CRXL is now selling for $7.57/share, which is a lot higher than a few months ago but still the company’s market cap is a modest $273 million—or there abouts. They have no debt to speak of and enough cash to go for years at the current burn rate. I expect more licensing deals with major Pharma and continued progress on their pipeline which includes multiple other vaccines..

I am adding 3000 shares to the Model Portfolio. This is a long-term play—at least 2-3 years..