Why Repros Therapeutics 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, clinical-stage biotech company Repros Therapeutics (NASDAQ: RPRX  ) has received the dreaded one-star ranking.

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

Repros facts

 

 

Headquarters (founded)

The Woodlands, Texas (1987)

Market Cap

$370.6 million

Industry

Pharmaceuticals

Trailing-12-Month EBITDA

($22.9 million)

Management

CEO Joseph Podolski (since 1992)

CFO Katherine Anderson (since 2011)

Return on Capital (average, past 3 years)

(72.6%)

Cash/Debt

$17.2 million/$0

Competitors

Abbott Labs 

Actavis 

Auxilium Pharmaceuticals 

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

On CAPS, 52% of the 132 members who have rated Repros believe the stock will underperform the S&P 500 going forward.

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

A year ago I did some in depth research on Repros and concluded that at a share price of [$9.00] the stock was untouchable. I couldn't impeach their science but the company had a long-standing pedigree of misrepresentation dating back to their days as Zonagen. ...

I stood on the sidelines and today the stock stands at double where it was when I drew my prior conclusions. This comes despite a couple of notable setbacks: a data issue in the ZA-301 trial of Androxal that might be grounds for an eventual CRL, and the FDA refusal to permit the company to move directly to a phase III trial of vaginal Proellex for uterine fibroids. I think Repros has benefited from the recent forgiving mood of the market toward the biotech sector in general, but all pendulums eventually swing. A market cap of [$370M] doesn't seem like a lot compared to some other frothy companies, but I'll make a measured bet that Repros has gotten a little ahead of itself.

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