First Albany Stays 'Neutral' on Neopharma

Analyst David Webber likes the news of the drug maker's fast-track program status for its new tumor treatment

First Albany keeps its neutral rating on Neopharma (NEOL )

Analyst David Webber says the news is an indication of the promise and potential of its maliglant tumore treatment, agent IL13-PE38. He says clinicians he spoke with are optimistic, given the current results. He notes the company often said it hopes to advance to pivotal clinical trials later this year or early next year. Webber thinks Neopharma has a diversified technolgy base, and a good chance of getting a product to market.

He sees a $1.92 2002 loss, and a $2.75 2003 loss. He says he is long term positive on Neopharma, however, he rates neutral because the company's problems with development partner Pharmacia is leading to binding arbitration.

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