opinions?, page-46

recommended by abn amro 2006 Healthcare Tips From ABN Amro Morgans
January 09 2006 - Australasian Investment Review

At the beginning of 2005, healthcare analysts at ABN Amro Morgans selected two stocks to watch.

Genepharm Australasia (GAA) subsequently returned 30% and Alchemia (ACL) 55%. Feeling a bit chuffed, the analysts are giving it another shot.

Three stocks are in focus for 2006. Alchemia gets another run, as its synthetic heparin project is on track and is expected to be launched in the US in 2008.

Other promising projects are in cancer, eye disease and anti-bacterial products. ABN suggests Alchemia has a number of value enhancing milestones anticipated in
2006. .......

..... Finally, the pick of the large caps is Sonic Healthcare (SHL). In Europe, further acquisitions are possible, says ABN, which the analysts have not yet factored in.

There is also potential for revenue increases in Australian and NZ pathology and diagnostic imaging, due to increases in government spending. The analysts are forecasting 20%+ organic earnings growth in their model from FY06-8 (which compares well with global competitors at 8-13%).