ATHX currently trades for a whopping and nose-bleed 11x 2014 consensus rev estimates(Yahoo) vs only 1x for SVNT
Valuation matters. For example, ATHX's consensus rev est for 2014 is currently only $8.39 mil(Yahoo) vs a much higher $54.35 mil for SVNT. SVNT's 2014 rev est is likely much higher and closer to around $75 mil due to the 40% May price raise of Krystexxa which has yet to be reflected in forward rev estimates. Furthermore, institutional ownership is much higher in SVNT than ATHX. ATHX's mkt cap is over $93 mil vs less than $60 mil for SVNT.
They kicked out SVNT's ceo. QCOR did the same exact thing in May 2007 when they got rid of Fares and then raised the price of Acthar from $1,650/dose to $23,000/dose. Shortly after QCOR went from under $1/sh to $6/sh over a few months. It appears SVNT is following the same game plan. Initiate major price raises, get rid of the ceo, generate sufficient revs to generate profits, self-finance label expansion and secure a partner. That's worth about $10/sh for SVNT, in 24 months. Good luck to all.
Meeker, the ceo of GENZ, the largest orphan drug co in the world, is now a bd member at SVNT. He's positioning SVNT for a sale or partnership before YE. SVNT is worth at least $5/sh by YE or $8-$10/sh by YE 2014 after several more price raises and SVNT guides profitability.