OSI Pharmaceuticals, Inc. (OSIP)

Nice pharma company with good potential.

Good fundamentals, growing revenue, near 52 week low.

I have a sneaking suspicion that these obesity drug companies (especially the well managed ones) are going to go absolutely crazy if the health insurance reform goes through.

Especially after they outlaw being over-weight.

Pharma - Although it's taken a beating recently OSI has a sub 5 PE, good news and plenty to grow on. It may not move huge, but the news should keep investers interested long enough.

Considering Book value, earnings, and market cap...this should beat the market in 5 years.

Great valuation, low Enterprise value

Mmm...biotechnology...

Side effects on cancer treating drugs can make them a difficult decision to use, but overall most patients are willing to take the risk for any possible gain against cancer that might extend their life. OSI Pharmaceuticals current revenue depends a great deal on Tarceva, for lung and pancreatic cancer. Blistering skin and/or a hole in the intestines has been fatal in some patients. AS a result, the sales of Tarceva appear to be threatened, but short of an FDA removal, I don't think this will be a serious blow to OSI as long as the risk is deemed to be below the possible gains. Other Phase II and III drugs for other cancers, drugs in pipeline for obesity and diabetes, and their other research make them a viable target for a larger pharmaceutical such as GlaxoSmithKline. IN the short run their current revenue gives them the strength to continue research and thier sales puts them in a net positive position, which is rare for a Pharmaceutical.

OSI has been unfairly hammered despite continuing to report strong Tarceva revenues, apparently as a result of poor overall market conditions and negative results of a phase III study which combined Tarceva and Avastin. I fail to see how the lack of improvement from adding Avastin to Tarceva will impact Tarceva's bottom line significantly. I also see a lot of strength in OSI's pipeline, with oral Tarceva and possible additional cancer indications in the future.

Great cancer news yesterday. 2-4-09

Studying obesity drugs can be a money earner if pitched right. Human trials with new PSN602 compound still ongoing. I look forward to seeing the results.

Starting to get momentum. EPS will continue to grow steadily. This is a buy and hold.

zacks outperform

No future. Nothing in the pipeline. Stock goinging in a deep slide.

In health care sector & fighting lung cancer should help stock

OSI pharmaceutical is looking to position itself as a specialty player in the oncology market through its drug Tarceva, which has booked global sales worth $650 million in 2006 alone. The company’s partnership with Genetech and Roche to market Tarceva in the U.S markets and international markets respectively has done wonders. To add on to this Tarceva has been approved in 69 countries to treat advanced non-small cell lung cancer (NSCLC) and in 42 countries to treat pancreatic cancer as on January 2007. The drug was further approved as first line therapy for metastatic pancreatic cancer in combination with Gemcitabine in January 2007. With lung cancer becoming the most common form of cancer in Europe and the number of people diagnosed with NSCLC in the U.S rising, Tarceva could become a blockbuster compound in the future.

The collaborative agreement OSI pharmaceuticals have with its partners is beginning to yield rich dividends with the sublicensing of GKA program and clinical candidate PSN010 to Eli Lilly & Co for an upfront fee of $25 million, which has the potential to generate $360 million on successful commercialization. Further, revenue flow is also expected from its DPIV inhibitor Januvia, for which the company’s partner Merck & Co has received FDA approval in the last quarter of 2006. The year 2007 will also see the regulatory submission for Tarceva in Japan by Chugai pharmaceuticals, a subsidiary of Roche.

Meanwhile the product pipeline is also buzzing with OSI930, OSI817 – both of which are intended for oncology market and PSN602 and GPR119 addressing the diabetes market where the company has a presence.

The decision of the company to consolidate its presence in the oncology segment by exiting the eye care segment, where the intended acquisition went wrong will strengthen the market position of the firm. Thus the company looks all set to inch forward in the path that it has been pursuing for the last six months.

The rival ImClone pancreatic cancer data will be released in the following days, and thus will increase competition for OSIP. I believe that the Imclone data will be positive, thus bringing down OSIP slightly.

Once Tarceva becomes obsolete around 2009, this stock is junk. Bad mgmt. Poor upside.

Take your gains while they're there with this one