Long-term investors in Nektar Therapeutic (NKTR)
have had a roller coaster ride over the years, as these shares have
traded up and down on for particular products like inhaled insulin and
Nektar's PEGylation licensing royalty streams in general. Over the last
few years, though, the company has been focusing on not only increasing
its share of value in its partnered programs, but using the cash
generated by them to support its own proprietary development portfolio.
The
next year is looking like a big one for the company, as it should have
considerably more clarity about the future of its opioid-induced
constipation drug and its metastatic breast cancer drug. Together these
drugs encompass about half of the value I see in the shares. While
Nektar must deal with the same risks and uncertainties as any biotech, I
think the Street may be underpricing these shares. Even with what I
think are relatively conservatives estimates for many of the lead
programs, I think the shares may be almost 30% undervalued and Nektar
does offer a deep pipeline of potential drug candidates.
Please continue here:
2014 Looking Like A Big Year For Nektar
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