PGNX

Progenics Pharmaceuticals Inc

Healthcare


Presented:07/31/2015
Price:$8.66
Cap:$0.60B
Current Price:$4.10
Cap:$0.36B

Presented

Date07/31/2015
Price$8.66
Market Cap$0.60B
Ent Value$0.31B
P/E Ratio846x
Book Value$1.65
Div Yield0%
Shares O/S69.64M
Ave Daily Vol1,423,653
Short Int17.35%

Current

Price$4.10
Market Cap$0.36B
Progenics Pharmaceuticals, Inc. engages in developing medicines for oncology. It offers clinical trials of product candidates for prostate cancer, and resumed a pivotal trial of an ultra-orphan radiotherapy candidate for pheochromocytoma. The company was founded by Paul J. Maddon on December 1, 1986 and is headquartered in Tarrytown, NY.

Publicly traded companies mentioned herein: AstraZeneca PLC (AZN), Progenics Pharmaceuticals Inc (PGNX), Valeant Pharmaceuticals Intl Inc (VRX)

Highlights

The presenter is long shares of Progenics Pharmaceuticals (PGNX), a ~$600 million market cap company which receives royalties on Relistor (methylnaltrexone bromide), a treatment for opioid-induced constipation (OIC). The other portion of Relistor is owned by Salix, which was recently acquired by Valeant. Based on a review of the tender documents and price Valeant paid for Salix ($158 per share), it would appear as though Valeant ascribed ~$1.5 billion of value to Salix’s ownership of Relistor. When he runs through the math for PGNX, the value of its ownership of/ royalties from Relistor should be $1.2 billion (~$16 per share). With the stock trading at around $8, this alone suggests there is attractive upside for shareholders. However, the presenter noted, “There are additional potential catalysts - including M&A - that could drive upside into the $20s”.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.