John Sinkins, CFAAxcan PharmaceuticalsAXP.TOTOP PICKNov 03, 2003

Part pharmaceutical and part drug development. Very profitable. Strong balance sheet and lots of cash flow. Generates about US$1.50 free cash flow every year. In a very stable gastro-intestinal market. They're also in-licence some drugs which gives them some pretty good upside. Trading at about US$14 with $1 a share free cash on the balance sheet.

A very focused (gastro intestinal) pharmaceutical company and as a result, it is very profitable. You pretty well get a free call option on a potentially block-buster drug called Itax. Huge market in North America.

Last news was that R&D spending would be higher than the street anticipated. Launching a product that could be a $200 million product.

Has a very good ROE. Efficient balance sheet structure. Continuing to grow their earnings. Valuation is reasonable.

Its OK earnings wise. They are trying to make a hostile take over which looks expensive. Core business is OK.

A good long term hold. They focus on their earnings. Well managed.

Had a nice run. May be a bit high now.

Products selling very well. Sales force based in US