5.3

Valuation, possible acquisition candidate, major product in 2009

growth

33%

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Medicis (MRX) was downgraded to Hold rating from Buy at Jefferies. Price target cut to $35 from $26 and FY 2008 eps estimates dip to $1.53 from $1.56.

Health-Care Sector Focus List - Price 25.92 on Jan. 2
by H&R Block

Medicis is a leader in the U.S. dermatology market. [We believe that] having exceeded Street expectations for five of the last seven quarters, the company's consensus projected EPS estimate for 2008 of $1.54 (+26% versus '07) could prove conservative, should Reloxin [an anti-wrinkle treatment] be approved sooner than the anticipated 10-month regulatory review...The sales potential from Reloxin [is] significant [if] the product garner[s] just 20% of the market. And the shares' multiple of 23 times is at the low end of its historical range. Market-cap: $1.5 billion.

10.4

Increased demand in dermatological products. Growing industry.

Medicis announced a $200 million dollar buyback.

In early August, the prescription acne and skin medication maker raised its full-year profit forecast.

The stock trades for 14x cash flow.

Restylane does not seem to be as good a product as I had thought it would be

Miserable financials and negative cash flow. Makes me crave cheap scotch and the linoleum floor.