If we took the current valuation multiples being assigned to newly successful biotech companies such as Regeneron (REGN), Gilead (GILD), Celgene (CELG), and Biogen (BIIB), we would come up with an average P/E multiple of 31.92. Not surprisingly this is right in the 30 price-to-sales ratio number where OPK is currently valued. Seeing that the current near-term market size OPK is entering is an estimated $43.5B (solely in the territories estimated) and the company will have around 405M shares outstanding following the completion of its acquisition of Prolor Biotech, I see a high chance of the company breaking the $50 a share mark in a few years time and possibly much higher if all of the discussed products are on the market in the outer 2016-18 years. Since OPK is what investors refer to as a speculative stock, there is always a high degree of risk involved in making an investment. I have based my rationale for investing in OPK on the following:
A large and high-demand product pipeline.
A top-notch management team that has already built and sold two highly successful pharmaceutical companies to Teva (TEVA) and Schering Plough.
Massive insider buying on a scale I have never personally seen before.
A gut instinct that this company has all the stars aligned to make it a huge success.