Replies to post #119216 on Biotech Values

[Superfly15]

Not bad...with a nice base around 10$ too. Early stage pipe though, i'd be more intrigued if they had a ph. 3 drug(s).

[mcbio]

ALNY is off more than 40% in the past year and has an enterprise value of only $200M. Does anyone here find the stock attractive at this valuation?

They reported 1Q11 results today:
finance.yahoo.com/news/Alnylam-Pharmaceuticals-bw-1042593757.html?x=0&.v=1 .

I'm all for buying out of favor biotechs and hoping for a rebound in sentiment and share price, especially when it comes to those in good financial shape (which would appear to apply to ALNY). But, do you have confidence that the market will ultimately reverse course in its views on the RNAi field? ALNY is presumably going to need either some concrete clinical results in its RNAi pipeline or at least that change in investor sentiment regarding the possibility of future positive clinical results for a rebound in the share price. Do you see either of those as likely? And do you find the stock attractive at this valuation (presumably "yes" if you answered "yes" to the prior question)?

[urche]

ALNY/TKMR/Regulus

I also have been sniffing among the suffering RNAi therapeutic stocks. DEW, I agree that EV of ALNY is enticing. But, digging into the IP issues, lawsuit with Tekmira, and relatively weak pipeline dampened my enthusiasm. IMO, the most interesting thing about ALNY is that one becomes co-owner of Regulus (joint venture with ISIS).

Actually, my sniffing led me to increase my tiny TKMR holding a bit. Talk about screaming low valuation with potential for major catalysts, TKMR's EV is only about $18M with no debt and the small additional benefit of Canadian dollar diversification. Forgive me for fantasizing about this, but it just seems almost common sense for ALNY to use a tiny portion of its cash hoard to just buy TKMR, thereby eliminating a lawsuit, clean up its IP, and gain access to what is arguably the most advanced delivery platform in RNAi therapeutics. I took a gamble on that lottery ticket.

Urche