Biotech Values

[DewDiligence]

QURE—One reason for the recent sell-off could be skepticism about pricing of gene-therapy products. Here’s an excerpt from the Reuters piece in #msg-96847475 (from 2/5/14, the day of QURE’s US IPO):

UniQure won approval in November 2012 to sell its drug Glybera in Europe and intends to start selling it as a treatment for the ultra-rare disease lipoprotein lipase deficiency (LPLD) with partner Chiesi in the first half of 2014. The drug is likely to break new ground as the world's most expensive medicine, with a potential price tag of more than $1 million. A high price is needed because a single dose could last a lifetime, giving uniQure just one shot at recouping its investment.

Chief Executive Jorn Aldag said in 2012 that Glybera could sell for around 250,000 euros a year for five years, implying a total price of 1.25 million euros ($1.6 million).

The company has since said that no decision has been taken on price and its IPO prospectus also said it now believed that a one-time price, rather than an annuity-based system, was the most likely pricing model.

Glybera is a modified virus that delivers the correct version of a gene into people afflicted with LPLD, a hereditary disorder that raises the risk of potentially lethal inflammation of the pancreas.

Does your calculation of the $60M enterprise value take into account dilution from options and warrants? If so, the $60M EV does seem unduly cheap, IMO.

See the links in #msg-96429741 for related info on gene-therapy pricing.