Why Regulus Therapeutics Is Poised to Keep Plunging

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company Regulus Therapeutics (NASDAQ: RGLS  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Regulus and see what CAPS investors are saying about the stock right now.

Regulus facts

Headquarters (founded)

San Diego, Calif. (2007)

Market Cap

$1 billion

Industry

Biotechnology

Trailing-12-Month Revenue

$12.7 million

Management

CEO Dr. Kleanthis Xanthopoulos (since 2009)
COO Dr. Garry Menzel (since 2009)

Trailing-12-Month Return on Equity

(55%)

Cash/Debt

$98.1 million / $10.1 million

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 85% of the 13 members who have rated Regulus believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star zzlangerhans, succinctly summed up the Regulus bear case for our community:

They have an enterprise value of [$150M] and all they have to justify it is their [Isis Pharmaceuticals/Alnylam Pharmaceuticals] pedigree. They won't be submitting an IND for their first microRNA therapeutic until 2014, and their existing partnerships don't provide much income. What concerns me the most is that their lead compound is an intravenous therapy for Hepatitis C. Where has management been for the last five years, as other companies have been demonstrating high rates of cure with all-oral regimens? The company now admits they will only be able to target a niche population that has failed other therapies. If that's the best we can hope for from microRNA, I'll stick with RNAi.

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