RDUS

Radius Health Inc

Healthcare


Presented:07/18/2017
Price:$41.83
Cap:$1.81B
Current Price:$17.70
Cap:$0.50B

Presented

Date07/18/2017
Price$41.83
Market Cap$1.81B
Ent Value$1.39B
P/E RatioN/A
Book Value$6.06
Div Yield0%
Shares O/S43.19M
Ave Daily Vol1,207,827
Short Int37.64%

Current

Price$17.70
Market Cap$0.50B
Radius Health, Inc. a biopharmaceutical company, which engages in the discovery and development of therapeutics for the treatment of osteoporosis and other women health conditions. Its BA058 Injection product is a daily subcutaneous injection of novel synthetic peptide analog of human parathyroid hormone-related protein. The company also develops BA058 Microneedle Patch; RAD1901, a selective estrogen receptor modulator for the treatment of vasomotor symptoms in women entering menopause; and RAD140, a selective androgen receptor modulator. Its initial business was founded by John Katzenellenbogen, Stavros C. Manolagas, Michael Rosenblatt and John T. Potts on October 3, 2003. Radius Health was founded on February 4, 2008 and is headquartered in Cambridge, MA.

Publicly traded companies mentioned herein: Amgen (AMGN), Eli Lilly & Co (LLY), Merck & Co (MRK), Novo Nordisk A/S (NVO), Radius Health Inc (RDUS), Teijin Limited (3401 JP)

Highlights

The presenter is short shares of Radius Health (RDUS) in the low-$40s and sees a favorable risk/ reward setup due to the company’s limited resources, slow launch of Tymlos (abaloparatide; an injection that treats osteoporosis), and competition/ pricing concerns. In his estimation, RDUS has “just enough” cash to get through the next three quarters and could run our shortly thereafter. And, it is difficult to see how CEO Bob Ward’s departure could be viewed as positive in the context of Tymlos’ launch trajectory. On the upside, sentiment surrounding RDUS’ investigational drug elacestrant (RAD1901) for breast cancer and M&A rumors provide fuel for bulls on the company; however, if the story unfolds as he expects, RDUS could decline to $30 over the next 12 months.

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Idea Discussion

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