Tuesday, June 23, 2015

United Therapeutics and GlycoMimetics

Going down the list of stocks in the IBB, my next stop was United Therapeutics (UTHR). I spent about a day doing research and wrote up my conclusions for Seeking Alpha:

United Therapeutics Appears Undervalued

I concluded I did not want to buy UTHR at the present time. Buying it a year ago would have been smart, but then a lot of biotech pharmaceutical companies are up a lot in the last year. Other investors may find it worthwhile. I concluded it was undervalued, which for most investors would make it a buy, but I just did not like the pipeline enough. Maybe later.

GlycoMimetics (GLYC) announced that its partner Pfizer had initiated the Phase 3 trial of Rivipansel for the treatment of vaso-occlusive crisis (VOC) in patients hospitalized with sickle cell disease. That triggered a $20 million milestone payment. If you read this blog you may recall that I bought some GLYC back in March and April because the price seemed low because of a delay in getting the trial started. I bought at $8.59 and $8.36. Well the stock popped on the news today, up $0.95 to $8.79, so I am up only a tad. However, if the trial gets good results this is going to be a big winner, since the current market cap is only $167 million. Could go 10x or 100x in the next decade. On the other hand it is a micro-cap. Bad results in this trial could be a death sentence. Pick your poison.

All the more reason to:

Keep diversified.

Of course if you want to read the detailed notes I keep on stocks I own or am thinking of acquiring you can find a list at OpenIcon.

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