September 2007 - Main Story: Pipex Pharma
Main Story - Pipex Pharmaceuticals (AMEX:PP) - pgs. 1-31
Macro Market Commentary - "One test before clear sailing " - pgs. 32-37
BSR Coverage Update - pgs. 38-50
BSR Model Portfolio Update - pgs. 51-53
Welcome to the September 2007 issue of Biotech Monthly. In this issue we initiate coverage on Pipex Pharmaceuticals (AMEX:PP). This company has inlicensed a number of later-stage drugs with orphan pathways to first approval. The drugs also have potential applicability to much broader markets. The BSR Research Team is increasingly attracted to companies with the model of grabbing the low-hanging fruit of orphan indications before swinging for the fences in blockbuster markets. With the current "difficult" regulatory environment hampering blockbuster drug development, an alternative strategic model is required. Companies like BioMarin (BMRN) have effectively shown the way here. We expect Pipex to follow in its footsteps.
Pipex has an unexpectedly broad pipeline of interesting drugs. Cash burn is modest due to a strategy of inlicensing drugs with significant grant support for their clinical development. Pipex leverages decades of contact-building in university tech-transfer departments to find their pipeline candidates. With a small number of shares outstanding and an even smaller float due to heavy (>50%) insider ownership, price gains on positive news could be considerable.
Pipex is one of those undiscovered companies we love to run across in our primary research efforts. We expect good things from the company both in the near-term and long-term.
Macro Market Commentary - "One test before clear sailing " - pgs. 32-37
BSR Coverage Update - pgs. 38-50
BSR Model Portfolio Update - pgs. 51-53
Welcome to the September 2007 issue of Biotech Monthly. In this issue we initiate coverage on Pipex Pharmaceuticals (AMEX:PP). This company has inlicensed a number of later-stage drugs with orphan pathways to first approval. The drugs also have potential applicability to much broader markets. The BSR Research Team is increasingly attracted to companies with the model of grabbing the low-hanging fruit of orphan indications before swinging for the fences in blockbuster markets. With the current "difficult" regulatory environment hampering blockbuster drug development, an alternative strategic model is required. Companies like BioMarin (BMRN) have effectively shown the way here. We expect Pipex to follow in its footsteps.
Pipex has an unexpectedly broad pipeline of interesting drugs. Cash burn is modest due to a strategy of inlicensing drugs with significant grant support for their clinical development. Pipex leverages decades of contact-building in university tech-transfer departments to find their pipeline candidates. With a small number of shares outstanding and an even smaller float due to heavy (>50%) insider ownership, price gains on positive news could be considerable.
Pipex is one of those undiscovered companies we love to run across in our primary research efforts. We expect good things from the company both in the near-term and long-term.
In this issue of Biotech Monthly, we also update our coverage on:
Adolor (ADLR)
CombinatoRx (CRXX)
Dendreon (DNDN)
Indevus (IDEV)
Medarex (MEDX)
Oncolytics Biotech (ONCY)
Targeted Genetics (TGEN)
YM Biosciences (YMI)
ViRexx (REX)
ZymoGenetics (ZGEN)