PropThink’s Weekend Healthcare Wrap-Up
- The EMA’s advisory body took investors by surprise on Friday and announced that they would be recommending Halozyme (HALO) and Baxter’s (BAX) HyQvia for approval in the European Union. The stock has fallen considerably since January, but our subscribers — who jumped in Friday morning when we called it a buy — are already up 15%.
- Looking for a risk-mitigated way to play Ziopharm’s STS data next week? Threshold Pharma (THLD) offers an interesting derivative on Palifosfamide. TH-302 is a pro-drug of Palifosfamide, meaning that a positive or negative data release could have beneficial effects on the stock.
- AMED is a short in our opinion. It’s lofty earnings multiples simply aren’t justified considering the deterioration of the underlying business. Here are the details. AMED is down from $16 in September, but there’s still a ways to go before it reaches fair value.
- We’ve been talking about XenoPort’s XP23829 and the opportunity for shares to move on BG-12’s approval for a while. Subscribers were in on the bounce Thursday as shares, recently under pressure, met support in the mid-$6 range. The stock was back above $7 for a quick 8% by Friday’s close.
- Orexigen has been walking down expectations on the timing of the LIGHT study trial results. It doesn’t change the fundamentals, but investors should have realistic expectations about when the interim trial occurs — and more importantly, the NDA resubmission. Since we recomended Orexigen for 2013, the stock is up 12%.
- Providers of Sleep Apnea treatments, called CPAP equipment, face surmounting macro pressures. RMD (ResMed) is due for a correction accordingly, as the resellers of its devices (DMEs) won’t be able to turn a profit selling these high-end products exclusively. We interviewed ResMed’s smaller, private competitor and a recent entrant into the market, 3B Medical, for details on the CPAP market pressures. Sales Manager Susan Craig believes that 3B’s less-expensive unbranded products can take significant market share from ResMed and the bigger players. That means downside for RMD and contracting valuation multiples.
- PropThink focused on two regenerative medicine opportunities in the last two weeks: Neuralstem (CUR) and InVivo (NVIV). Both carry big market opportunities with disruptive technology, it’s just a matter of clinical proof from here. Read about both to learn why regenerative medicine is an enticing investment.
- Last year, the FDA approved the first in-home HIV test, developed by OraSure. But since then, shares have been in a slow decline. Now, we believe that OSUR has found its bottom and that the fundamentals support its current valuation. It’s an opportunity in an unaddressed market, and even minimal growth from this small-cap would justify upside.