Weekly Recap: PropThink’s Latest in Healthcare and Biotech


  • Gilead paid a lot of money - $11B to be exact - to acquire Pharmasset back in 2011. Was it worth it? Propthink dug in and analyzed the Net Present Value of Gilead’s potential hepatitis C profits. You might be surprised by the findings.



  • The market currently values Endo Pharmaceuticals well-below many of its peers, and despite generic pressures, that discount isn’t likely to last.



  • Lexicon caught shareholders off guard with a capital raise just this month, and understandably, shares fell. Technicals suggest a bounce, but at the end of the week, LXRX was still feeling pressure. ONXX remained in the doghouse as well, despite a considerable 3Q earnings beat.



  • AVEO’s expense cuts might save the company money, but it’s the acceptance of its recent NDA that will drive near-term price action. And with focus now moving to tivantinib’s opportunity in liver cancer, ARQL’s strong balance sheet might support a “free” look at some Phase 2 data yet this year.




  • NAVB announced an impressively swift resolution to its manufacturing-related Lymphoseek CRL. And if Fusilev can continue to grow through the entry of generic leucovorin, SPPI could head back to its highs for the year.



  • Rumors still circulate that Roche might take another run at Illumina for its diagnostic business. Whether true or not, ILMN is well-positioned for growth - investors benefit either way.



  • Shifting the focus from ZIOP’s upcoming palifosfamide data, we took a detailed look at the company’s early-stage candidate, Ad-RTS IL-12.



  • Upcoming catalysts for Titan Pharmaceuticals, increasing confidence in Probuphine, and even a little mystery make this report a worthwhile read.



  • Neurocrine BioSciences develops Elagolix in partnership with Abbot. Although a ways from hitting the market, these two might be on to a blockbuster endometriosis treatment.



  • Ampyra sales trumped estimates this week, and the drug is set to continue quality growth. ACOR should rise as analysts increase price targets accordingly.



  • Biogen Idec has been slow to redeploy capital of late, but with BG-12 likely to hit the market before long, Mr. Deryugin says that’s a positive for investors; the FDA’s recent delay makes a great entrance point.



  • Despite unsatisfying 3Q results, MRGE holds upside potential as it pursues strategic alternatives and transitions to a new sales-recording method.



  • QCOR sold off on Friday with fears of a new Acthar competitor, but the potential drug has some serious safety issues, and the dip was unwarranted. QCOR gained some of those losses back by the end of the day.