PropThink’s Weekly Biotech Round-Up

Cell therapy developers Athersys and Cytomedix target the immense stroke treatment market. Mr. Napodano laid out the theses for these two stem cell developers, although he’s more bullish on CMXI for the time being.

News this week that Trius had patented a tidezolid/daptomycin combination has an interesting read-through for Trius and Cubist. Mr. King called TSRX a buy when the stock dipped on May 1; it’s since rallied 27% and is up more than 60% since PropThink first started covering the name.

Both Cubist and Trius are great antibiotic plays with long-term upside, and on Monday PropThink highlighted the CBST investment thesis in full.

With a CRL in hand, Titan’s (TTNP) focus is on an upcoming meeting with the FDA. What they need now is deeper clarity on addressing this rejection. We think there’s a trade to be made here, and will outline details as events approach.


Sunshine Heart develops a novel device for the treatment of heart failure, a large and growing domestic market. And, the company’s $55M valuation is hardly indicative of the company’s real potential – just see Heartware (HTWR) and Thoratec (THOR) for example.

Mr. Deryugin outlined an options play for involvement in IMMU. He’s liked the company for a while now and noticed the compelling long-term strategy over the weekend.

Full results from Synergy’s late-stage plecanatide study will be presented next week at the Digestive Disease Week meeting in Orlando, Florida. One of PropThink’s collaborators will be at the meeting and will be reporting highlights from the event. We think the next week or two could be value-driving for SGYP, in relation to the meeting, and in consideration of possible analyst initiations.

ATOS has continued to break down since PropThink’s subscribers knew to get short in mid-March. We considered the stock overhyped and fundamentally inadequate to support its valuation. ATOS is down 50%.

Along the same vein, RPTP’s Procysbi approval played out similarly. The stock is off 14% following our note to get short.