Welcome to the first issue of Condor Monthly, a newsletter aimed at keeping our clients informed. In upcoming issues, we will discuss a variety of topics of interest, including financial planning, portfolio management, estate, and gifting strategies, and what's new at Condor Capital. We may also include a particularly relevant or timely article as an attachment. In this issue, we will introduce Mary Policastro, hired to complement Andrew Novick in Client Service, discuss our consideration of Sanofi-Aventis for our clients' accounts, and touch on the importance of developing a Living Will. We hope you find this newsletter informative and welcome any comments.
What's New at Condor Capital
Condor Capital is pleased to announce the hiring of Mary K. Policastro as Manager of Client Service. In this role, she will assist Andrew Novick in providing service to existing clients and further developing our practice. Mary's responsibilities include providing marketing and sales support, especially with the advisor referral programs at our account custodians. She is also responsible for meeting with clients and maintaining a high level of client satisfaction. Mary previously worked for Charles Schwab & Company for 18 years. While at Charles Schwab, she was recognized numerous times for excellent client service. Mary earned a Bachelor of Science degree at Kean University with a major in Business and a minor in Early Childhood Education. She is Series 7, 63, 66, and 8 licensed. Please join me in welcoming her!
From the Portfolio Manager
Within the healthcare arena, we have taken care to focus on traditional drug companies with attractive pipelines and limited generic competition. Since we have found only a limited number of companies that fit our criteria, we have been increasingly emphasizing biotechnology, generic, and medical device stocks, which we believe exhibit above average growth potential. However, one recent addition to the healthcare sector includes a traditional pharmaceutical company called Sanofi-Aventis (SNY). In August 2004, Sanofi and Aventis merged in a $64 billion takeover of Aventis by Sanofi. The combination created the world’s 3rd largest drug company. The company has built a 50-drug pipeline with 40 new molecules in Phase II & III clinical trials.
One of the company’s potentially promising new blockbusters is called Acomplia (Rimonabant), which is a weight-loss and smoking cessation drug. The drug is the first of a family of cannaboids with multiple potential uses. It curbs both the appetite and the craving for nicotine. It is formulated from a marijuana derivative and has none of the usual side-effects. If approved by the FDA, it will be the first weight loss drug with significant effects and allow Sanofi-Aventis to tap into a virtually untouched market, as only 2 drugs are approved for the long-term treatment of obesity – and use of both are limited due to side effects. Sales could potentially reach $5B/year with an estimated worldwide clinically obese population of over 250 million. The drug will initially target diabetics with central fat (abdomen + buttocks) since this is where weight loss is achieved selectively. The drug has also been shown to increase the level of HDL, or good cholesterol. Acomplia is currently in Phase III trials which are expected to end in the 2nd quarter of 2005 with approval targeted for early 2006.
Therefore, even though we have been paring down our exposure to traditional pharmaceutical companies, we are positive on Sanofi-Aventis because of its appealing valuation, a track record of consistently strong growth, and an attractive, late-stage pipeline with blockbuster potential.
The Import of a Living Will
Earlier this year, the debate over whether Terri Schiavo's feeding tube should be removed was covered by the national news media. While this was a terrible tragedy for all involved, it did raise public awareness of the importance of Living Wills. Without a Living Will, medical treatment to maintain your life will normally be provided once you are unable to communicate. This will likely include what is often referred to as "extraordinary measures" and may even include treatment regardless of objections by family members. A Living Will allows you to state when you want to receive treatment, when you want to avoid treatment, and what type of treatment you want used or withheld by medical professionals.
Of course, Terry Schiavo did not have a Living Will, which led to feuding between her family, friends, doctors, and lawyers over her medical treatment. Terri's parents felt that she would want to continue to receive nourishment through a feeding tube, but her husband (who was her legal guardian) felt otherwise. With a Living Will, you can prevent putting your family in a similar situation to that of Terri Schiavo. Remember that Terri Schiavo was only 26 years old when she suffered a stroke, demonstrating that Living Wills are not only for the elderly, but also for people of all ages. Most people do not plan on tragedy, but it is important that you and your family are prepared. If you want a clear mandate on your medical care, we urge you to draft a Living Will as soon as possible.
Make sure that your Living Will is in proper form. Most states require that it be signed, dated, and witnessed. Most estate planning attorneys can draft a Living Will so that it properly conforms to the laws of your state. Living Will forms for all states can also be found and purchased online for a small fee from a variety of websites including www.legacywriter.com, www.lawdepot.com, and www.itsmylife.com. For residents in the state of NJ, please feel free to contact us at (732) 356-7323 for a referral to an attorney who can help you. NJ residents can also go to the Somerset County Surrogate's website at www.co.somerset.nj.us/surrogate.htm where there is a link for more information on Living Wills as well as a free Living Will form or call Hunterdon Hospice at (908) 788-6600 to register for a Living Will workshop, which are held at the Hunterdon Regional Community Health Office every few weeks.
In creating a Living Will, it is a good idea to speak to your family and friends about it and keep it accessible. Speaking with your physician may also be advisable since not only will he or she be the one most likely caring for you, but he or she can also help you phrase your requests in a way that makes sense to physicians and answer any questions you may have. You might also want to give a copy to your physician and to the person who has been named in it to carry out your wishes. It is a good idea to periodically update your Living Will because your decisions can change and physicians, healthcare facilities, and courts are more likely to honor a recent Living Will than one created years ago. 
