Pharmasset Inc. (fka VRUS)

[oc631]

Reply to a horrendous article



http://seekingalpha.com/article/239220-inhibitex-a-biotech-gem-in-the-enormous-hepatitis-c-market?source=yahoo




James,


You failed to mention any of Pharmasset's (VRUS) HCV drugs by name in your article leading us readers to make assumptions. The VRUS drug in phase 2 testing that you compared Inhibitex's (INHX) INX-189 to must be PSI-7977. Surprisingly absent was mention of RG7128 which VRUS developed and than partnered with Roche. Not only is Roche paying all development costs for RG7128 but VRUS stands to make up to $135 million in milestone payments from Roche upon approval along with product royalties. Phase 3 testing begins next year and the resistance profile, efficacy, and safety all look promising.

If you want to to compare INX-189 to one of Pharmasset's four HCV drugs under development my choice would be PSI-938 or PSI-661. Not only are they guanine nucleotide analogs (like INX-189), but PSI-938 is in phase 1b testing and PSI-661 will be moving into clinical testing the first half of next year leaving INX-189 somewhere between the two in stage development. Of note PSI-938 and PSI-661 have proven equally potent in vitro against HCV wildtype virus and virus with the S282T mutation unlike INX-189*.

I have been following INHX for about a year now. The last two weeks INHX shot up more than 50% on speculation of a positive outcome for FV-100. This recent run up has nothing to do with INX-189. For you to state that "the market is discounting that value [of FV-100] down to zero and below" is insulting at best. More likely than not FV-100 will prove to be superior in efficacy compared to valacyclovir but if it doesn't, or if there's a safety issue, you can count on the stock being cut in half.

I like Inhibitex and personally feel the company will be successful. I liked it better two months ago when it was trading below $1.80. If you want to use your "discount back" analysis perhaps you shouldn't value Pharmasset and Idenix as one drug companies? Your model not only is unfair to these companies (VRUS,IDIX) but significantly overvalues the company you are pumping (I mean covering). Your approach is unfair to the unassuming investors that follow you on Seeking Alpha.


Evan


P.S....You just replied to another poster that you are not pumping INHX because you don't own it. Meanwhile at the bottom of your story it says you are "long INHX". Doesn't "long" mean you own the stock?





*Studies done by Pharmasset per 10K.