Why Synageva Is Poised to Underperform
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company Synageva BioPharma has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Synageva and see what CAPS investors are saying about the stock right now.
Synageva facts
Headquarters (founded) | Lexington, Mass. (1996) |
Market Cap | $1.2 billion |
Industry | Biotechnology |
Trailing-12-Month Revenue | $11.7 million |
Management | CEO Sanj Patel (since 2008) |
Trailing-12-Month Return on Equity | (29.2%) |
Cash/Debt | $233.4 million / $0 |
Competitors | Gilead Sciences |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 83% of the 12 members who have rated Synageva believe the stock will underperform the S&P 500 going forward.
Earlier this week, one of those Fools, All-Star zzlangerhans, succinctly summed up the bear case for our community:
I imagine that Synageva bulls, who maintain a low profile, look to [Alexion Pharmaceuticals ] as a model for a multi-billion company treating a single orphan disease. However, no other companies developing replacement therapies for orphan congenital diseases have come close to Alexion's success. ...
Synageva has only completed a single phase I/II trial of sebelipase alfa for CESD, and to the best of my knowledge has not announced concrete plans for further trials. ...
I also find it concerning that Synageva obtained their public listing via a reverse merger with zombie biopharma Trimeris in July 2011. That gave Synageva some cash, a dying HIV drug called Fuzeon, and the ability to avoid the scrutiny that comes with an IPO. ... The current valuation of Synageva reminds me of that of [Protalix Biotherapeutics ] right before they crushed their shareholders with an 80% below market dilutive financing in 2007. Food for thought.
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The article Why Synageva Is Poised to Underperform originally appeared on Fool.com.
Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Gilead Sciences. 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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