Orphan Drugs in Trouble?

Earlier this month, Aegerion Pharmaceuticals missed analyst expectations for Juxtapid, with sales coming in at $27 million, and the company lowered guidance for the year to a range of $180 million to $200 million, from a ranger of $190 million to $210 million.

In the following video, senior biotech specialist Brian Orelli and health-care analyst David Williamson discuss the situation with Aegerion Pharmaceuticals and the orphan-drug model in general.

For Juxtapid, it's hard to know if competition is an issue, because its closest competitor, Kynamro, is sold by Sanofi which doesn't break out sales since they're not material to the larger company. Kynamro was developed by Isis Pharmaceuticals , which is materially affected by sales, but the biotech isn't able to give investors information on the launch because it's fully under Sanofi's control.

From biotech to Silicon Valley
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now, for just a fraction of the price of Apple stock. Click here to get the full story in this eye-opening new report.

The article Orphan Drugs in Trouble? originally appeared on Fool.com.

Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends Apple and Isis Pharmaceuticals and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story