Where We’re Finding Value for Biotech Investors

  • PropThink kicked off the week by revisiting Endo Health (ENDP) and brought the scoop on Rajiv De Silva’s materializing plans for the company. De Silva, a former Valeant (VRX) star, was brought in as Endo’s CEO in February, and he’s been on the road with investors this week outlining his plan for moving forward. Based on De Silva’s Valeant playbook, there’s long-term upside for investors; the stock rallied 11% just this week.
  • Shares of Immunomedics have climbed 13% since PropThink first noted its prospects in early March after an equity sale. This week, the company pulled in $16M in non-dilutive capital. Immunomedics has built its development program around antibody drug conjugates, a novel place to be in oncology, and with a number of presentations forthcoming and a secure balance sheet, we believe the company is undervalued.
  • The key to Auxilium’s (AUXL) success, says Mr. Deryugin, is CEO Adrian Adams and what he can do with the balance sheet. The company is positioning to expand its revenue base beyond Testim and Xiaflex, and Adams has a history of building and selling businesses.
  • Lymphoseek’s market opportunity remains a topic of debate in the investing community. NAVB shorts have made out since Lymphoseek received FDA approval, but now there’s evidence that Lymphoseek accurately identifies sentinel lymph nodes. This is key to the long-term bull thesis, built on the radiopharmaceutical’s expanding addressable market.


  • The market has latched on to the Cinryze generic threat, which has kept VPHM from performing alongside the broader biotech sector. While the stock has still climbed 11% since our coverage, Mr. Deryugin believes the generic concern is overblown and that there’s significant upside to the stock — here’s why.
  • ASTX went on a tear in March, and while we we’re waiting for weakness to enter, this is a name worth holding ahead of catalysts this year. Lead candidate SGI-110 could offer major benefits over existing MDS and AML therapies, which should become apparent with Phase II data later this year.
  • Alexion in February revealed issues at one of its Soliris manufacturing facilities; Soliris is its only approved drug and the most expensive pharmaceutical in the world. We believe the issue is addressable, and with the franchise still growing, this weakness is an opportunity to make an entrance into a compelling orphan drug play.