The following group of biotech companies have market caps of at least $300M with a one year stock price change that is below the iShares Nasdaq Biotech ETF (IBB) loss of 21.8% (Source: Google Finance, 10/25/08) with potential upside catalysts over the next year.
Alnylam Pharma (ALNY): $872M, -31.6%
Biogen Idec (BIIB): $12B, -48.4%
BioMarin Pharma (BMRN): $1.7B, -33%
Momenta Pharma (MNTA): $348M, -23.4%
Momenta and Novartis (NVS) expect to launch a generic version (M-Enoxaparin) of the injectable blood thinner Lovenox in 2009, pending approval of their ANDA by the Generic Division of the FDA. With Momenta trading in single digits again after reaching as high as $20 per share; an approval for M-Enoxaparin would be a significant catalyst since Lovenox posted sales of about $4B in the last year for Sanofi-Aventis (SNY).
Since trading into the upper $70s after putting itself up for sale, Biogen has pulled back into the lower $40s, which represents an attractive entry point on overblown PML concerns for Tysabri and its attractiveness as a takeover target. Biogen would provide a big pharma suitor with a portfolio of approved and late-stage biological agents positioned for growth in the future.
The two remaining companies on the list represent attractive takeover candidates for different reasons as BioMarin markets the high margin, orphan drug Kuvan with a pipeline of other specialized enzyme-based treatments while Alnylam offers its RNA interference [RNAi] drug discovery platform and early stage pipeline, which Merck (MRK) paid $1.1B two years ago for a similar RNAi drug discovery company Sirna Therapeutics.
$16.95 (10/25/08)
