Biotech Moves Are Anything but Crazy
Posted at 2:18 p.m. EDT on Thursday, June 11, 2015
It's not insanity. I am talking about these biotech moves we are seeing of late, including today's amazing run in the newly public Axovant (AXON). It's not insane because, for whatever reason, the older-line pharmaceutical companies seem congenitally incapable of developing huge drugs, while these new companies seem to do it as a matter of course.
Just think about this week. Now, you may believe Regeneron (REGN) had a "bad" panel discussion about its new anti-cholesterol formulation and that's why the stock's down from $540 to $500.
But the fact is, this drug stands a tremendous chance to be worth multiple billions of dollars because the test results prove pretty conclusively that this different approach Regeneron is trying could be the way to augment current statins to do better and help people who can't tolerate the current statins to get that cholesterol down.
Yes, there were some people on the panel who questioned how broadly the drug should be taken, but it was approved by a 13-3 vote and there is little to no doubt that this drug will be on the market fairly shortly. Sure, there is a competitive drug. It's made by Amgen (AMGN). I say may the best biotech man win.