What to do with some of your profits ? Buy...... S V N T.......Why? First, SVNT sells for less than 1x 2014 rev estimates and is in the process of aligning its lead orphan therapy's price to a rare disease market. Right now SVNT's Krystexxa is priced at only $5,390/dose vs $34,000/dose for Acthar.......Dr Meeker-the CEO of GENZ-the largest orphan drug co in the world.... joined SVNT's bd this yr. Dr Meeker is ONLY.....on the bd at SVNT according to GENZ's website. Dr Meeker was brought on board to help SVNT better align Krystexxa's price with its smaller, rare disease mkt and better position it for either a sale or partnership. QCOR was in the exct same position as SVNT in early 2007 when it too was.....ugly, unloved, under $1/sh and about to reprice Acthar to rare disease drug levels. The rest is history. QCOR then went from .70/sh in 2007 to $70 /sh after properly aligning Acthar's price and expanding its label. SVNT is in the process of doing the same. Once SVNT initiates another major price raise to $10,000 or there abouts, SVNT will be profitable next yr and have about $125 mil in revs. SVNT will then trade at 4-5x sales.......That's the SVNT trade in a nut-shell. Congratulations again to every old ONXX long who held through thick and thin.
If there are no other bidders, AMGN might be able to secure a price that is slightly lower than $130. ONXX IMHO would have no choice but to accept such a bid or risk a massive decline in share price. IMHO ONXX will avoid that at all costs.
AMGN is up because previously traders assumed other bidders would show up, but they didn't. Now instead of paying around $140/sh for ONXX-like most assumed- AMGN will likely pay less than $130/sh.........That IMHO explains the pop in AMGN's sh price.