southern cross - biotech report

Southern cross Equities' Stuart Roberts bought out a very interesting report yesterday on the Biotech, pharmaceuticals and medical devices sectors. ACL cop a pretty good rap in this 48pg report.

A few ACL pieces:

1. Stuart says that the market is seriously undervaluing ACL due to delays in FDA approval of the company?s generic fonda.

2. Things SCE are looking out for:

- FDA approval of fondaparinux;
- First revenues from fondaparinux;
- Initiation of the HA-Irinotecan Phase III trial;
- Initiation of Phase II HA-Irinotecan study in small cell lung cancer
- Potential collaboration deals on VAST, and
- Pre-clinical data on interesting compounds generated by VAST.

3. They maintain their $2 price target with the $3.28 optimistic case and $1.98 base case.