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An Overview on Valuing Junior Biotech Companies — Does Clovis Fit the Bill?

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The biotech industry remains one of the most fascinating yet perplexing industries for investors. Anecdotes of the entry-stage biotech with a home-run new therapy are often romanticized, but the reality is the vast majority of molecules fail in various stages of clinical testing.  Due to the boom-bust nature of the industry, many are wary of investing in the space, and traditional valuation metrics are not as useful due to a large number of such speculative entities being in the pre-revenue stage. With this in mind, let’s take a glimpse into our thought process when evaluating upstart biotech companies. By Alexander J. Poulos Before we dig in, we feel a word of caution is warranted. Entry-stage biotechs (IBB) inherently come with … Read more

Best in Biotech? Global Blood Therapeutics’ Promising Treatment for Sickle Cell Anemia

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We remain impressed with the depth of research conducted over a wide host of disease states. Though a molecule may appear to hold significant promise in the pre-clinical phase, we have often witnessed the unique ability of the human body to react to various treatments. Often an unwanted side effect can torpedo a treatment, thus relegating millions of dollars of research obsolete. However, if a promising molecule is brought to market, the payoff is often well worth the effort. Our goal is to sift through the various clinical data to unearth the most promising treatments with the understanding that nothing is assured until the FDA authorizes the product for marketing in the US. We believe we have identified a promising … Read more

Which Mid-Stage Biotech Can Grow Into the Next Large Cap Biotech Behemoth?

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Image Source: Steven Depolo The biotech field is on the cutting edge of scientific research. The production of new therapies often positively affects the share price of these innovative companies as long-term revenue and earnings expectations become embedded in the stock price. Let’s take a look at several mid-stage biotechs that may grow into dominant players. By Alexander J. Poulos The application of ETFs in investment strategies has gained widespread adoption during the past decade. Though the blind use of ETFs—buying a basket of stocks at any price—comes with myriad risks, there are certain advantages in that some ETFs offer desired exposure to certain themes or sectors. When it comes to biotech, the most liquid biotech ETF is the iShares Nasdaq … Read more

Best Idea Vertex Pharma Is an Intriguing Biotech Play

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Image Shown: A snapshot of Vertex Pharmaceuticals Inc’s approved therapeutic offerings and its drug pipeline. Image Source: Vertex Pharmaceuticals Inc – January 2021 IR Presentation By Callum Turcan On January 12, we tweaked the Best Ideas Newsletter portfolio (link here) and added Vertex Pharmaceuticals Inc (VRTX) to the portfolio to gain exposure to a top tier biopharmaceutical company with powerful growth catalysts, a pristine balance sheet, a stellar cash flow profile, and exposure to next-generation treatments (gene therapies) through a strategic partnership that we will cover later on. The top end of our fair value estimate range for Vertex sits at $321 per share. Commercial Portfolio Overview Vertex’s commercialized therapeutics portfolio is heavily weighted towards treating cystic fibrosis (‘CF’) across … Read more

Stock Market Outlook for 2021

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By Valuentum Analysts February 8, 2021 2020 was one for the history books. We covered our thoughts and reflections on the past year in our “2020 Won’t Soon Be Forgotten” article (link here), and now we are looking towards the future. Global health authorities should be able to bring an end to the ongoing coronavirus (‘COVID-19’) pandemic sooner than many had expected as several vaccines have already been improved for emergency use and several others appear increasingly likely to get approved. Global vaccine distribution activities are currently underway, and this should allow the world to slowly return to pre-pandemic activities. Before then, immense stimulus measures launched primarily in developed nations should support global economic activities until the public health crisis … Read more

Best Idea Vertex Pharma Boosts Guidance (Again), Buying Back Stock While Awaiting Key Clinical Trials

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Image Shown: Vertex Pharmaceuticals Inc is one of our favorite biotech ideas. Image Source: Vertex Pharmaceuticals Inc – Third Quarter of 2021 IR Earnings Presentation By Callum Turcan One of our favorite biotech plays out there is Vertex Pharmaceuticals Inc (VRTX), which is included as an idea in the Best Ideas Newsletter portfolio. The company’s commercial portfolio, meaning therapeutics that have already been approved by key health regulators, is centered on drugs that treat cystic fibrosis (‘CF’), including patients as young as four months old as well as older patients. Its branded commercialized CF treatments include TRIKAFTA/KAFTRIO, SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO. Vertex Pharma is currently generating substantial revenue and cash flows from these offerings. Guidance Update Sales of its CF … Read more