There are a few Bio bargains not yet realized by market Look at forgotten IPO ZGNX
DD on ZGNX 105 Mill $$$ Mkt Cap 71 Mill in Cash & approved Migraine drug 40 mill in sales 2011 & projected 80 mill in 2012 BUT has phase 3 trials done & POSITIVE outcome on their ( First to Market ) Extended release Hydrocodone drug & also ( First to Market ) APAP free or Acetaminophen free ( causes Liver Toxicity) & FDA cracking down on it. ZGNX according to last CC has already been approached by Pharmas looking to partner up on drug & will make a decision in early 2012 whether to partner or go alone. Why go alone ??? Huge market for Hydrocodone ( Over 6 BILLION a Year & growing ) & Oppenhiemer has opined that ZGNX drug will do around 500 Million a year in sales. Insiders know the potential & have bought over 56% of the total outstanding shares 36.4 Million shares including the 7.1 Million shares purchased in September. Coupled with the 18 Million shares just purchased in the last 3 months by Institutions which now totals over 25 million shares & growing . BTW 18 million shares bought 11 thousand shares sold ???? FLOAT is around 4 Million shares 4 MILLION ...This is a sure shot double/triple/??? easily could be another INHX $2 to $10 quickly on FDA or Partner news or a straight buyout....INSANE Valuation here though
It's hard to know what Vimovo is worth now that Pozen stated that 2012 sales will be in excess of $100M. I would say $2, but then I'm tempted to start forecasting out into 2013 and beyond. I'm going to say it's worth closer to $3-4. We can't assign more than $1 or so to PA but when that one comes online it's going to probably generate a lot of revenue. This is basically a steal. So funny to read the crap the shorts write. If they're forced to cover this could bump hard.
This deal will give POZN some attention over the next week. My point is that it has a fair value of around $5, but could trade much higher if the types that are looking for greater returns come in and buy POZN. With PA, this company has the potential of doing $250M+ in annual sales (maybe even a lot more).
Sure, Vimovo may be worth more, but as a fair value (in other words, how much would CII pay for it today?) I'd say $1-2/share value. I think there's a lot of upside potential with POZN with PA, which could drive the stock much higher.