PropThink’s Weekly Round-Up

  • Although Illumina was slapped with a $96M fine by a federal jury this week, the monetary penalty isn’t all that detrimental to the $6B company; Illumina is out-pacing its competition in the genetic sequencing market.
  • Amedisys operates a declining business, we believe, which should start to reflect more on the stock. The home healthcare provider just can’t support its valuation for long.
  • InVivo’s experimental device for treating spinal cord injuries has serious commercial potential. The company should hear back from FDA about its IDE and HUD applications in the next month. If positive, it’s big news for the roughly 200,000 patients in the U.S living with a spinal cord injury.
  • Raptor Pharma’s stock pulled a textbook reversal in February and has climbed 19%. Along the same lines, TSRX, which Jason Napodano has long covered for PropThink, soared 40% since a capital raise sent the stock to $4.80 in late January.
  • Everyone’s waiting on that interim analysis from IMUC. Shares are up 38% since we first wrote on the immunotherapy developer.
  • ACAD was highly lucrative for many of PropThink’s followers (+200%) when Pimavanserin proved more efficacious than the Street expected. Jason Napodano has adjusted his models accordingly and laid out a compelling update on the company.
  • Ohr Pharma’s squalamine eye drops could be highly disruptive to the treatment landscape for wet AMD. Although the treatment is certainly speculative, there are a number of catalyst early this year to get the shares moving.
  • XNPT was taken to the wood shed this week when the company revealed that it would likely need to raise cash later this year (not quite so explicitly). We think there are some nice value-drivers in the near-term, and this weakness makes for a good entrance point.
  • Following Keryx’s conference call, PropThink organized the company line in regards to NCE and PTE status for Zerenex. NCE, in our view, seems shaky, but we’re optimistic about PTE and the strength of the company’s full IP. More importantly, the EU and Japanese opportunities for Zerenex offer real support for the stock.