Nine months ago, I thought XenoPort (NASDAQ:XNPT) had some appeal for very aggressive investors
willing to play the odds that not only would the biotech sector
recover, but that the Street would get more bullish on XenoPort's
relaunch of Horizant and the prospects of XP23829 ('829) in multiple
sclerosis and possibly psoriasis as well. Since then, the shares have
risen almost 120%.
Is there still enough upside in XenoPort to
make it worth holding these shares? The answer is a guarded "yes". The
markets for both psoriasis and multiple sclerosis are each likely to be
worth more than $15 billion a year by the time '829 achieves commercial
sales, but the company is still facing comparatively long odds for
commercial success. That makes the Phase II psoriasis data later this
year very significant - a strong indication of efficacy should unlock
significant value (by de-risking the outlook), but inadequate results
will sap virtually all of the upside.
Follow this link for more:
XenoPort Prepping For Key Data In 2015
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