Moors & Cabot Initiates Coverage of Hollis-Eden Pharmaceuticals with a Sector
Outperform
SAN FRANCISCO, Dec. 19 /PRNewswire/ -- Moors & Cabot is initiating coverage of
Hollis-Eden Pharmaceuticals with a Sector Outperform rating and a 12-month
price target of $30 which is based on (1) our anticipation of an annualized EPS
run-rate of at least $1.00 per share by late 2005, (2) a forward P/E multiple
of 40, with (3) the result discounted back 12 months at 30%. Our positive
recommendation is based also on the company's full pipeline of immune-regulating
hormones that have an exceptionally broad potential range of therapeutic
indications, as well as an unusually strong balance sheet. (Since Hollis-Eden
is still a development-stage company not yet generating revenue, investment is
recommended for individuals and institutions able to assume at least a moderate
level of risk.) Hollis-Eden Pharmaceuticals is a late development-stage biopharmaceutical
company developing and commercializing a new class of investigational drugs
called immune regulating hormones (IRHs). The goal of IRH intervention is to
stimulate, through hormonal control of gene expression, the balanced production
of key combinations of cytokines and enzymes that can re-regulate immune and
metabolic functions toward normalcy, a therapeutic capability that can be
clinically helpful in a wide variety of diseases and conditions. One of the
company's IRHs, HE2100 (Neumune), has been named by the US Defense Department as
its leading drug candidate for protection from acute whole-body radiation injury
(as from dirty bombs or nuclear sabotage or accidents), because of its ability
to stimulate growth of white blood cells and platelets before or after exposure,
thereby preventing opportunistic infections. Because of the urgency of this
program, we expect that the company will receive large orders from government
entities over the next year, and receive FDA approval by early 2005.
Moors & Cabot is a member of the National Association of Securities Dealers, CRD
number 594. DATASOURCE: Moors & Cabot CONTACT: Ron Opel of Moors & Cabot, +1-415-288-2232 Web site: http://www.moorscabot.com/
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