GTHX

G1 Therapeutics Inc

Healthcare


Presented:12/05/2017
Price:$19.08
Cap:$0.54B
Current Price:$7.15
Cap:$0.38B

Presented

Date12/05/2017
Price$19.08
Market Cap$0.54B
Ent Value$0.59B
P/E RatioN/A
Book Value$3.85
Div Yield0%
Shares O/S28.32M
Ave Daily Vol142,011
Short Int1.52%

Current

Price$7.15
Market Cap$0.38B
G1 Therapeutics, Inc. develops drugs for cancer treatment. It is a clinical-stage pharmaceutical company that focuses on the discovery and development of novel small-molecule therapies to address significant unmet needs in oncology. The company was founded by Kwok-Kin Wong and Norman E. Sharpless on May 19, 2008 and is headquartered in Research Triangle Park, NC.

Publicly traded companies mentioned herein: Amgen Inc (AMGN), AstraZeneca (AZN), G1 Therapeutics Inc (GTHX), Pfizer Inc (PFE), Radius Health Inc (RDUS)

Highlights

The presenter is long shares of G1 Therapeutics (G1 or GTHX) at $19, and thinks the company, which is focused on cyclin-dependent kinases (CDKs), is poised to see substantial progress with its two CDK4/6 inhibitor product candidates: Trilaciclib (IV) and G1T38 (an oral version). There is also a “free call option” on its third development program (G1T48, for breast cancer). The market for immune support therapies during chemotherapy is “huge" (over $6bn), and G1 poses a threat to Amgen’s Neupogen, Neulasta, and Epo, among others. The $540mm market cap company has ~$120mm cash, and is burning ~$14mm per quarter. This gives management a “nice runway” to execute on its development programs. Based on Trilaciclib’s early data, and the potential for a broad label, the presenter can “easily” get to a $500-700mm annual revenue forecast.

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Idea Discussion

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