ABEO

Abeona Therapeutics Inc

Healthcare


Presented:09/20/2016
Price:$6.57
Cap:$0.22B
Current Price:$6.54
Cap:$0.28B

Presented

Date09/20/2016
Price$6.57
Market Cap$0.22B
Ent Value$0.04B
P/E RatioN/A
Book Value$1.88
Div Yield0%
Shares O/S32.78M
Ave Daily Vol149,284
Short Int4.24%

Current

Price$6.54
Market Cap$0.28B
Abeona Therapeutics, Inc. is an emerging pharmaceutical company engaged in the development of novel therapeutics for the treatment of cancer and supportive care of cancer patients. It focuses on developing a range of pharmaceutical and medical device products primarily based upon nanopolymer chemistry technologies and other drug delivery technologies. Abeona Therapeutics products are ProctiGard, LexaGard, CobOral and CobaCyte. The company was founded in 1974 and is headquartered in Dallas, TX.

Publicly traded companies mentioned herein: AbbVie Inc (ABBV), Abeona Therapeutics (ABEO), BioMarin Pharmaceutical Inc (BMRN), Bluebird Bio (BLUE), Spark Therapeutics Inc (ONCE), United Therapeutics Corporation (UTHR)

Highlights

The presenter believes that shares of Abeona Therapeutics (ABEO) represent a unique opportunity in the biotech sector and he is long the stock at $5.78 (~$200 million market cap). Most small cap, gene therapy-based biotech companies don’t have the kind of asymmetric risk/ reward profile and relatively clear line of sight to cash flow generation that are present in this case. ABEO is focused on the development of treatments for rare pediatric diseases [Sanfilippo Syndrome (MPS III), Epidermolysis Bullosa, and Juvenile Batten Disease] and has approximately three years of cash on its balance sheet (~$34 million). The focus on rare diseases affords the company a number of advantages, and with sufficient cash to bring its lead products through the approval process - and a high likelihood of priority review vouchers (PRVs) being issued to ABEO - the presenter reasons that downside risk is limited and shares can potentially double in value over the foreseeable future (12-18 months). And, in his blue sky case, longer-term scenario (24+ months) the Sanfilippo products could to be worth >$2.5 billion and EB-101 could be worth $5 billion, for a total value of $7.5+ billion.

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Idea Discussion

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