Biotech investing is not where you go if you want an easy investing
life, but the profits of patience and good stock selection can be
significant. Investors are clearly nervous about biotech now, and there
is a threat that sector-wide selling in these notoriously fickle stocks
will put them in hibernation until the cycle turns around again.
Specific to Alnylam (ALNY),
though, I would argue the company has never been stronger. The company
is on pace to exceed its target of having five compounds in human
studies by the end of 2015 ("5 x 15"), and a recent deal with Sanofi (SNY)
gives Alnylam development funding, a motivated commercial partner, and
the perception that it has been vetted by a large pharmaceutical company
with a significant presence in rare diseases.
Alnylam is
absolutely a risky pick, and investors should not ignore the risk that
not only may the company's drugs fail in the clinic or in the
marketplace, but that investors indiscriminately bailing out of the
sector could weigh on the share price at times. On the flip side, I
cannot ignore that Alnylam has multiple potential billion dollar-plus
drugs in the clinic and a very strong R&D position in what could
prove to be one of the next major therapeutic alternatives. With that, I
see almost 50% upside in Alnylam shares today.
Continue here:
In A Shaky Biotech Market, Alnylam's Prospects Are Getting Stronger
No comments:
Post a Comment