| BUSINESSWEEK ONLINE : AUGUST 16, 1999 ISSUE | ||||||||
| ||||||||
 | ||||||||
| BUSINESSWEEK INVESTOR -- INSIDE WALL STREET
Time for Biotime? Investment pro Al Kingsley has had many home runs, both on the long and short side of the aisle. Once dubbed the genius behind corporate raider Carl Icahn, Kingsley now heads his own money-management firm, Greenway Partners. One stock that Kingsley is currently high on is BioTime (BTIM), which happens to be a current favorite of short sellers as well. That doesn't faze Kingsley, who has acquired a 7% stake. He thinks the company, which develops synthetic blood solutions used for treatment of blood loss during surgery or traumatic injury, will be a huge winner for hospital patients as well as for investors. On Apr. 1, the Food & Drug Administration approved BioTime's blood-plasma expander Hextend, which is used in keeping patients' blood pressure high enough to ensure circulation during surgery. Abbott Laboratories has an exclusive marketing pact with BioTime to market Hextend in North America. The shorts think BioTime's blood plasma expander has a limited market. They have had a lucrative time with the stock, as it tumbled from 21 a share in early April to as low as 8 3/4 on June 21. Of the 8.4 million shares in public hands, some 2.7 million are controlled by short sellers. The bulls, however, continue to be optimistic as the stock recovers. It closed at 13 1/2 on Aug. 3. Analysts put the market for plasma volume expanders at about $470 million. Abbott has started marketing Hextend, which it expects initially to get 10% of that market. BioTime President Ronald Barkin says Hextend sales should hit at least $40 million in 2000 and $70 million in 2001. One analyst figures BioTime will earn $11 million, or $1.18 a share, in 2000 and $20 million, or $1.50, in 2001. Barkin says BioTime should sign a marketing pact with a large European drug company for the European market, similar to the Abbott deal, by yearend. A pact with a Japanese drugmaker is being sought for the Asian market. BY GENE G. MARCIAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
|  |
 | |
RELATED ITEMS Time for Biotime? CHART: A Transfusion from Big Buyers INTERACT E-Mail to Business Week Online | |||
