actually SGYP deserves to sell for far less. Their drug is less potent (3mg dose versus 256ug dose), it is going to suffer from other issues like cross-reactivity with natural products (related to the SGYP drug) whereas Lizness is more stable, with less sequence homology to the naturally occuring peptides in the gut. What is hurting this stock (besides the obvious short play) is that revenue reality versus expectaiton pre-launch is always an issue with biotechs. The DNDN disaster is haunting many companies, related or not.
it's been up for 6~7 consecutive days now. shorts are done with this stock for now. How high would MMs make the PPS this round? to $12 in a month?
AND..... Dont forget the little fact that Amitiza blows. There is an unmet need out there - enter IRWD, SGYP.
SGYP was shorted heavily because of a dilution and no catalyst at the time. That is the ONLY reason.
Yea, hedge funds all got together and said "uh oh! A chloride channel activator?...quick! Short em" idiot.
Typical short pattern today on your chart. Brought you down early, caped you during the day on light volume, then threw shares at the close to keep it down and sap confidence for tomorrow morning. Your company is undervalued right now. By the way, Linzmess is a SCMP troll. Just ignore him
Iromwood has a $1.12 billion market cap, 120 million shares outstanding, are projected to lose $2.44 per share in 2013, or $292 million loss. That loss by Ironwood is greater than the ENTIRE market cap of SCMP!! Next year (2014) Ironwood is projected to lose $1.56 per share, or $187 million. Probably three or four more years before they are profitable, so they will have to issue more shares and dilute existing shareholders over the next few years for sure.
Contrast that to SCMP, WHICH HAS A .27 BILLION MARKET CAP, 42 million shares outstanding, will earn 9 cents per share, or $3.78 million in 2013, and 34 cents in 2014, or $14.0 million. is cash flow positive. Has multiple approved drugs, is entering many new markets in an expansion plan. The only rub is sales of Amitiza has been slow in USA due to the partner Takeda, but the sales in new markets are very strong (up 58% in Japan last quarter), and they are actively seeking a partner in rest of world, especially asia and China.
This post is copied from the scmp board courtesy martin_ (the intention is only for information purpose).
Look at what is happening to SGYP. These traders have realized the market cannot sustain a 3rd chloride channel activator. SGYP is in the toilet because of this, SGYP is the reason that IRWD stock is taking a HUGE hit lately. The market potentiol has been inflated for both these stocks for years and they are now being corrected in the market, that's what the shorts know.
In just 2 month, IRWD dropped from above $13 to below the PT of $9.5 put out by Goldman Sachs. Look, I'm not saying IRWD is a superb company, but not a single piece of major bad news. Majority of stock owned by institution. I guest the low daily trading volume makes it easy to short. I am disgusted by the action of Goldman Sachs to short this stock just to prove that they are right.
Any comments welcome. pls.
SCMP keeps only a small portion of the revenue ( I think 20%). The rest is kept by Takeda under licensing agreement,
IRWD keeps 50% of the revenue. The rest 50% is for Forest.
Now make adjustments in market cap etc
I am not bashing linzess just pointing out some facts about the other option. Both are increasing in sales every quarter but just look at the difference in market capital.
April 23, 2013 approved by FDA for opioid induced constipation.
So what you're saying is, Linzess (who is practically brand new to the shelves) had nearly 50% the sales as Amitiza? How long has Amitiza been out?
IRWD (current stock price $9.4; market cap 1.13billion)
Q3 net sales of Linzess -- 34.4 million
# of prescription increased 40% to 178,000 in Q3
SCMP (current stock price $6.17; mark cap 262.04 million)
I found Prescription details only for July 2013 and that month alone had 113,000
Japan alone revenue for Q3 was 5.2m
Q3 net sales of Amitiza -- 72.5 million (see Linzess figure above!!!!!)
2013 net sales till september -- 204 million
2013 first 9 month revenue for scmp -- 65.1 million
SCMP appears to be a clean grab at this point. Very low market cap, plenty of cash in hand and possibly a dividend in the very near future. Has other clinical trials going on also.
Yea SCMP's a great choice too... Yesterdays science and down 400% in the past 6mos. Great advice.
The stock was at 9.30 in Oct 2010 without any sales. Half a million prescriptions later, 15,000/week now and growing the stock is at 9.30. This stock is grossly undervalued .
Totally agree! But what can retail shareholders do other than watching our money disappear for no good reason? Sigh