RARE

Ultragenyx Pharmaceutical Inc

Healthcare


Presented:10/17/2018
Price:$66.04
Cap:$3.31B
Current Price:$57.12
Cap:$5.26B

Presented

Date10/17/2018
Price$66.04
Market Cap$3.31B
Ent Value$3.28B
P/E RatioN/A
Book Value$14.05
Div Yield0%
Shares O/S50.18M
Ave Daily Vol487,004
Short Int13.70%

Current

Price$57.12
Market Cap$5.26B
Ultragenyx Pharmaceutical, Inc. is a biopharmaceutical company, which engages in the identification, acquisition, development, and commercialization of novel products for the treatment of serious rare and ultra-rare genetic diseases. Its product includes Mepsevii and Crysvita. The company was founded by Emil D. Kakkis on April 22, 2010 and is headquartered in Novato, CA.

Publicly traded companies mentioned herein: BioMarin Pharmaceutical Inc (BMRN), Novartis AG (NVS), REGENXBIO Inc (RGNX), Ultragenyx Pharmaceutical Inc (RARE)

Highlights

The presenter is long shares of Ultragenyx (RARE) at ~$65, seeing a favorable risk/reward setup near- and longer-term. After scouring the biotech sector for potentially misvalued securities in the wake of the recent market selloff, which hit Tech and other high-beta names relatively hard, RARE stood out as attractively valued. Founded by former BioMarin executive Emil Kakkis (in April 2010), the rare disease-focused biotech has two approved medicines on the market, Crysvita (burosumab-twza) and Mepsevii (an ERT; vestronidase alfa-jkbk), and four (4) late-stage drugs in its pipeline. Applying a reasonable 4x multiple to peak sales estimates for RARE’s approved drugs equates to $65.81 of value, implying a slight margin of safety and optionality around the rest of the pipeline (i.e., investors at current levels get the pipeline for “free”).

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Idea Discussion

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