Oscient Pharmaceuticals Corp (OSCI)

pennysplants (99.28) Submitted: 12/20/2006 8:54:40 AM : Start Price: $4.82 OSCI Score: -81.36

Stock dumped yesterday when company's release of financial statements reminded the market that Company projections do not meet analyst projections. HOWEVER, OSCI's guidance is very positive and enticing to this fool. (see official guidance below). This is a volatile stock worth close watching.

Note how stock popped in early Dec 06 when Pfizer's Cholesterol drug development study was halted. Speculation is that Pfizer will need to feed future pipeline with acquisitions. Oscient acquired rights to cholesterol drug Antara from Reliant Pharmaceuticals for $82 million in August. The drug is not only approved to lower bad cholesterol but to raise good cholesterol when used along with a healthy diet. Pfizer already has a working relationship with Oscient marketing an antibiotic for pneumonia in Mexico.

"ANTARA is off to a strong start with total weekly prescriptions reaching new highs during the quarter and the four-week average increasing to 8,698 for the week ending November 17, 2006 from 8,153 when we began promotional activities in the week ending September 1, 2006. Among new prescriptions within the $1 billion fenofibrate market during the week ending November 17, 2006, ANTARA captured 4.7% market share. The smooth transition and successful launch by our sales force reflect the priority we have placed on ANTARA in recent months," stated Steven M. Rauscher, President and Chief Executive Officer. "While ANTARA has become our top selling product, we also remain focused on growing FACTIVE prescriptions during the respiratory tract infection season."

For fiscal year 2006, the Company expects to record total revenue of $44 to $46 million, representing approximately a doubling of the $23 million in total revenue generated in 2005. For the quarter ending December 31, 2006, the Company expects revenue of $16 to $18 million, with the majority of revenue derived from the Company's cardiovascular product ANTARA, acquired in the third quarter of 2006. The Company's cash, restricted cash and investments balance at year-end is expected to be approximately $37 million.

In 2007, the Company expects revenue to increase by at least 80 percent from 2006 revenue levels, with approximately two-thirds of those revenues derived from sales of the higher gross margin product ANTARA. FACTIVE, with composition-of-matter patent protection through 2018 and high in vitro potency against drug-resistant bacteria, continues to be an essential component of the Company's commercial portfolio.

"One of our current corporate development priorities is to add another marketed product to our portfolio," added Mr. Rauscher. "Our revenue projections for 2007 do not reflect potential expansion of our product portfolio."

About Oscient Pharmaceuticals

Oscient Pharmaceuticals Corporation is a commercial-stage biopharmaceutical company marketing two FDA-approved products with its national primary care sales force. ANTARA® 130 mg (fenofibrate) capsules is indicated for the adjunct treatment of hypercholesterolemia (high blood cholesterol) and hypertriglyceridemia (high triglycerides) in combination with diet. FACTIVE® (gemifloxacin mesylate) tablets is an antibiotic approved for the treatment of acute bacterial exacerbations of chronic bronchitis and community-acquired pneumonia of mild to moderate severity. Oscient also has a novel, late-stage antibiotic candidate, Ramoplanin, under investigation for the treatment of Clostridium difficile-associated disease (CDAD).