Liposome Technology Inc. stock has gained 25 percent thisweek after Kidder, Peabody analyst Robert Kupor initiatedcoverage by saying the stock was the best buy in thebiotechnology group.
The shares (NASDAQ:LTIZ) picked up $1 on Tuesday to close at$12. The gain came on top of a $1.38 rise on Monday.
Kupor wrote that he knows no other biotech stock that is soundervalued relative to the maturity and promise of itsproducts. He said that the stock is worth $15 now and couldreach $30 by mid-1992.
The Menlo Park, Calif., company's S-Dox product (Stealthliposomal doxorubicin) could become the world's biggest cancerdrug, Kupor said, with more than $600 million in worldwidesales.
In October, Oppenheimer & Co. analyst Jeffrey Casdin publisheda similarly favorable report on LTI's Stealth technology, whichenables liposomes to elude the body's immune system andremain in circulation longer than conventional liposomes.Stealth liposomes are coated with polyethylene glycol, whichattracts water molecules, camouflaging the liposomes frommacrophages.
Kupor said LTI could break even by 1995, with earnings of 52cents per share on $65 million in product revenues. This is oneto two years earlier than most of the companies making initialpublic offerings in 1991, said Kupor. -- KB
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