Hey Drano, Yes, hard to believe AXON is still as
Post# of 1460
Posted On: 02/02/2016 5:12:40 PM
Hey Drano,
Yes, hard to believe AXON is still as high as it is.........even after this fall.
Below from the PFE news,
Fletch
Pfizer's Move on Alzheimer's Drug Is Bad News for Axovant
Axovant Sciences (AXON) shareholders have good reason to feel sick Tuesday, and the last place they're going to find a cure is from Pfizer (PFE).
Shares of the newly minted biopharm company were down 25% in mid-day trading after production of an Alzheimer's drug very similar to its flagship product was halted in Pfizer's labs.
Many investors now wish they could forget hopping on board the Carribean company. After its initial public offering last June, roughly half its market cap seems to have disappeared somewhere beneath the Bermuda Triangle.
Now it's manageable $1.6 billion capitalization would lend appeal as a potential biopharm takeover target, if only its lead drug, RVT-101, could take off. But the discontinuation of Pfizer's Alzheimer's antagonist is not a good sign.
"It is clear to most of the market that this would not help the bull case that another similar class of drug failed and this would not increase the confidence level for RVT-101," RBC (RY) analyst Michael Yee wrote in a Tuesday investment note.
But much of the risk may already be baked into Axovant's share price, and investors today may be acting too skittishly on a company analysts already valued as speculative, according to Yee.
And while RBC maintains an Overweight position on Axovant, and a $16.65 price target, it appears Tuesday that much of Wall Street is not so bullish, especially with the company's management so dependent on the single drug.
"This is a drug that is one successful study away from approval," CEO Vivek Ramaswamy said at a November investment conference.
Despite 13 clinical studies so far over roughly 1,300 patients, it seems one study could be one study too many.
Yes, hard to believe AXON is still as high as it is.........even after this fall.
Below from the PFE news,
Fletch
Pfizer's Move on Alzheimer's Drug Is Bad News for Axovant
Axovant Sciences (AXON) shareholders have good reason to feel sick Tuesday, and the last place they're going to find a cure is from Pfizer (PFE).
Shares of the newly minted biopharm company were down 25% in mid-day trading after production of an Alzheimer's drug very similar to its flagship product was halted in Pfizer's labs.
Many investors now wish they could forget hopping on board the Carribean company. After its initial public offering last June, roughly half its market cap seems to have disappeared somewhere beneath the Bermuda Triangle.
Now it's manageable $1.6 billion capitalization would lend appeal as a potential biopharm takeover target, if only its lead drug, RVT-101, could take off. But the discontinuation of Pfizer's Alzheimer's antagonist is not a good sign.
"It is clear to most of the market that this would not help the bull case that another similar class of drug failed and this would not increase the confidence level for RVT-101," RBC (RY) analyst Michael Yee wrote in a Tuesday investment note.
But much of the risk may already be baked into Axovant's share price, and investors today may be acting too skittishly on a company analysts already valued as speculative, according to Yee.
And while RBC maintains an Overweight position on Axovant, and a $16.65 price target, it appears Tuesday that much of Wall Street is not so bullish, especially with the company's management so dependent on the single drug.
"This is a drug that is one successful study away from approval," CEO Vivek Ramaswamy said at a November investment conference.
Despite 13 clinical studies so far over roughly 1,300 patients, it seems one study could be one study too many.
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