Biotech Values

[mcbio]

Re: ANDS share appreciation

The one-day pop ended up being 44% (rather than 80%), which is still huge considering that Friday’s news was not all that newsworthy. Some analysts on the CC made a big deal of the fact that the FDA is allowing the phase-2 trial to test ANA598 for 12 weeks rather than, say, 4 weeks. However, I think this positive design feature is less consequential than the negative of the FDA’s requiring that dosing in the 400mg arm be delayed until patients in the 200mg arm are tested for rash.

All told, ANDS is not a cheap stock, IMO. The enterprise value of ~$60M strikes me as high for a company with a dismal track record and only one (suspect) clinical program.

We are in complete agreement on this one. In summary, I found the 44% rise in share price to be a bit, for lack of a better word, rash.