Why Idenix Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Idenix Pharmaceuticals (NASDAQ: IDIX  ) has received a distressing two-star ranking.

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

Idenix facts

Headquarters

Cambridge, Mass. (1998)

Market Cap

$649.7 million

Industry

Biotechnology

Trailing-12-Month Revenue

$34.9 million

Management

CEO Ronald Renaud
CFO Daniella Beckman

Trailing-12-Month Return on Equity

(57.5%)

Cash/Debt

$205.3 million / $0

Competitors

Bristol-Myers Squibb
Gilead Sciences
Vertex Pharmaceuticals

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

On CAPS, 14% of the 234 members who have rated Idenix believe the stock will underperform the S&P 500 going forward.

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

I find it difficult to value hepatitis C stocks but Idenix has risen sharply over the last three weeks without a clear precipitant that I can identify. The company announced plans for a phase II trial of all-oral combination of IDX719 and Janssen's simeprevir in their last earnings call, but this was fairly predictable after the announcement of the Janssen collaboration in January. Hepatitis C may still be an exciting and lucrative field but there's loads of competition and Idenix seems to be years behind in the development of all oral regimens.

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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 05, 2013, at 8:13 PM, Bpaxon wrote:

    What I think is someone just got a short position in IDIX and wants it to drop. The stock is currently trading at less then half the value of its 52 week high. If they have ANY positive news on their drug line or the FDA hold the value will double. I personally think shorting this stock would be very dangerous indeed.

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