Why Keryx Is Poised to Pull Back

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Keryx Biopharmaceuticals has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Keryx and see what CAPS investors are saying about the stock right now.

Keryxfacts

Headquarters (founded)

New York (1997)

Market Cap

$610.6 million

Industry

Biotechnology

Trailing-12-Month Revenue

$0

Management

CEO Ron Bentsur (since 2009)
CFO James Oliviero (since 2009)

Return on Capital (average, past 3 years)

(50%)

Cash/Debt

$20.3 million / $0

Competitors

Baxter International
CuraGen
Shire


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 26% of the 81 All-Star members who have rated Keryx believe the stock will underperform the S&P 500 going forward.

Earlier today, one of those Fools, zzlangerhans, succinctly summed up the Keryx bear case for our community:

Zerenex will almost certainly get first pass FDA approval. The issue with the drug is commercial potential and ability to compete against established phosphate chelators that happen to be going generic. Keryx bulls point to a dual benefit of iron supplementation, and the might have a valid point. However, a market cap close to [$700M] simply isn't justified without clearer indications that Zerenex will take significant market share. It's not surprising that Keryx raced to take advantage of the continuing speculative bubble in the stock with a large below-market financing.

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The article Why Keryx Is Poised to Pull Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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