MARKET REACTION NOT POSITIVE TO MINIMED DISTRIBUTION DEALS.Byline: Enrique Rivero Daily News Staff Writer Investors are a fickle fick·le adj. Characterized by erratic changeableness or instability, especially with regard to affections or attachments; capricious. [Middle English fikel, from Old English ficol, lot, as insulin pump insulin pump n. A portable device for people with diabetes that injects insulin at programmed intervals in order to regulate blood sugar levels. maker MiniMed Inc. learned Monday following the announcement of two potentially lucrative deals and a public offering of common stock. The Sylmar-based company announced it has entered into distribution and manufacturing agreements with pharmaceuticals companies Eli Lilly Eli Lilly can refer to:
Elan - ["Top-down Programming with Elan", C.H.A. Koster, Ellis Horwood 1987]. Corp., and also has filed a registration for a public offering of 2.25 million shares of common stock. So, how did the stock market react? Not too happily. MiniMed stock fell $3.375 to close Monday at $70.125. Investors might have reacted to fears that the extra shares would dilute earnings, said Kurt Kruger, health care analyst for Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. Securities in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . More likely, however, is that the downtick Downtick A transaction on an exchange occurring at a price below the previous transaction. Notes: In order for a downtick to occur, a transaction price must be followed by a decreased transaction price. is a correction on a stock whose price has been ``on an absolute tear'' the past couple of months, when it has jumped about $20, said Kruger, who has a ``buy'' recommendation on the shares. ``The price movement (Monday) looks to be a much-needed breather or correction after the stock has exploded,'' he said. ``We think it's unrelated to the news (Monday). We take all three events as a positive, with special attention to the Lilly arrangement, which we take as a very strong positive.'' Under the deal with Eli Lilly, the Indianapolis-based pharmaceuticals giant is licensing its new formulation of insulin lyspro to MiniMed for use with MiniMed's insulin pump. The agreement also calls for Eli Lilly to supply MiniMed with the insulin formulation in bulk crystal form. It's an ``extraordinary event'' in that one rarely, if ever, hears of a drug company doing that, Kruger said. ``That's really quite wonderful for MiniMed,'' he said of the deal. The agreement with Dublin, Ireland-based Elan Corp. grants MiniMed exclusive worldwide distribution rights to Elan's Medipad disposable continuous drug delivery system, which will be marketed under MiniMed's name. It will be aimed at insulin-using Type 2 diabetes type 2 diabetes n. See diabetes mellitus. patients. MiniMed also will be the exclusive maker of the continuous system for all applications, the company said. MiniMed chief financial officer Kevin Sayer would not comment on the company's stock price. It will be a year or more before the company's bottom line reflects the deals' benefits. ``We don't expect revenues from either project until late, late 2000, and the impact in 2001,'' he said. |
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