Biotech Values

[biomaven0]

What's your take on the Horizant sales numbers as reported? Are you still positive on XNPT going forward? What do you see as the value drivers of the SP?

I think this is the sort of drug that is going to take some years to build, so the initial quarter is neither here nor there. These days getting formulary approval for a drug like this takes several months, and GSK also didn't have their marketing materials approved until recently. So I think that we have to see the numbers in the longer term. From a medical viewpoint this drug should be the front line therapy, but it takes time to change practice and educate docs about the hazards of dopamine agonists (which of course the GSK reps might be reluctant to do given they were selling one until recently).

I think the stock has a very good risk/reward over the next year. BG12 pro-drug will potentially be a substantial driver, and the rest of their pipeline is decent as well.

I remain a holder and added to my position in the 5's.

Peter