Millennium Pharmaceuticals "neutral," estimates raised

07/25/05 - Robert W. Baird

NEW YORK, July 25 (newratings.com) - Analysts at Robert W Baird reiterate their "neutral" rating on Millennium Pharmaceuticals (MLNM), while raising their estimates for the company. The target price is set to $10.

In a research note published this morning, the analysts mention that the company has transferred its commercial responsibilities for the Integrilin product to its partner, Schering-Plough. Millennium Pharmaceuticals would receive an up-front payment of $35.5 million and $45-$50 million for existing inventories, in addition to royalty payments at a minimum of $85 million for 2006 and 2007, the analysts say. The deal is likely to be earnings neutral going forward, Robert W Baird adds. The EPS estimates for 2007 and 2008 have been reduced from $0.35 to $0.33 and from $0.49 to $0.47, respectively.