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DepoMed Inc. Message Board

  • jeffreydavis173 jeffreydavis173 May 19, 2014 10:39 AM Flag

    Do you think that Activas is the sole reason for the drop?

    As everyone knows DEPO went from above $15 to the low $10's in the past 6 months.

    Is the Activas lawsuit the sole reason for the drop?

    I think the GS comment some 1 1/2 months ago about Biotechs being hugely overpriced seems to be the major catalyst for the huge drop in the Biotech sector and in many high flyers and is more of a legitimate reason why DEPO took a 1/3 price drop from it's highs!

    The more important questions are when will the slid end and when to start purchasing more shares in DEPO if you still believe in the company?

    Not many posters making comments about the future price of DEPO.

    In fact there is only one poster who posts predictions about future PPS of DEPO who is now predicting a further drop to $6.00.

    Maybe he is just a Basher but no one else is stepping forward with their opinions.

    I personally feel we are still months away but it is really anyone's guess.

    Today we are up almost a point from it's recent lows but we have seen this before.

    Sentiment: Hold

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    • DEPO is not a biotech stock. They spend little on R & D at this time. Instead, they have repositioned themselves as a specialty pharma acquiring and marketing drugs in the pain sector. Last earnings report was weak and people were turned off by the CEO blaming it in part on the weather and Obamacare confusion. Meanwhile, DEPO is on the prowl for more niche acquisitions and investing in sales and marketing. They have the cash to do it. The Actavis case hurts earnings (due to legal fees) but doesn't dent their balance sheet. They have several royalty streams ongoing with the big one really kicking in 2015. They expect to get another $15MM in milestone (2014-15) from Mannkind. Fixed expenses should remain constant, so any ramp in sales will translate to the bottom line. The acquisitions were accretive and none have disappointed (according to their forward guidance). Historically, the CEO underpromises and overdelivers. I'd give it a price target of 16 this year and 22 next year.

      • 1 Reply to sfvictim
      • FYI royalty is from MNK, not MNKD, gigantic difference one is a cheap specialty Pharma the other is an overpriced long shot...

        Most of the drop was the sudden exit of the momentum players...I still expect them to get bought out sooner rather than later. Although a deal, and a lawsuit win and those momentum players will be back...

        Sentiment: Strong Buy

    • Also, last earnings report and the following conference call took the breath away from the longs.

      Sentiment: Hold

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