RDUS

Radius Health Inc

Healthcare


Presented:05/11/2018
Price:$32.69
Cap:$1.47B
Current Price:$17.70
Cap:$0.50B

Presented

Date05/11/2018
Price$32.69
Market Cap$1.47B
Ent Value$1.55B
P/E RatioN/A
Book Value$4.32
Div Yield0%
Shares O/S44.94M
Ave Daily Vol785,691
Short Int34.57%

Current

Price$17.70
Market Cap$0.50B
Radius Health, Inc. engages in the discovery and development of therapeutics for the treatment of osteoporosis, oncology, and endocrine diseases. The firm's lead product, abaloparatide-SC, reduces fracture risk in postmenopausal women with osteoporosis. Its pipeline also includes abaloparatide transdermal patch for potential use in osteoporosis and RAD1901 for potential use in hormone-driven, or hormone-resistant, metastatic breast cancer, and vasomotor symptoms in postmenopausal women. The company was founded by John Katzenellenbogen, Stavros C. Manolagas, Michael Rosenblatt, and John T. Potts on October 3, 2003 and is headquartered in Waltham, MA.

Publicly traded companies mentioned herein: 3M Co (MMM), Amgen Inc (AMGN), Eli Lilly and Company (LLY), Express Scripts holding Co (ESRX), Novartis AG (NVS), Pfizer Inc (PFE), Radius Health Inc (RDUS), Teva Pharmaceutical Industries Ltd (TEVA)

Highlights

The presenter is long shares of Radius Health (RDUS), and believes the current market value ($1.5B) fails to reflect the significant market opportunity the company has with Tymlos (abaloparatide; an injection that treats osteoporosis). He likes new CEO Jesper Høiland, who was most recently President of Novo Nordisk USA, and believes the story is about to turn into a “beat and raise” one through the remainder of 2018. Based on Tymlos alone, the market value is just 4x peak sales (discounted back), which implies the remainder of the pipeline, including an abaloparatide patch and earlier stage breast cancer assets, is “free”.

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