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Is Raptor Pharmaceuticals Ready to Roar?

By Brian D. Pacampara, CFA - Nov 16, 2012 at 9:54AM

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Market-trouncing returns could be written in this 5-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Raptor Pharmaceuticals (NASDAQ: RPTP) has earned a coveted five-star ranking.

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

Raptor facts


Novato, Calif.

Market Cap

$232.9 million



Trailing-12-Month EBITDA

($36 million)


Co-Founder/CEO Dr. Christopher Starr
CFO Georgia Erbez

Return on Capital (average, past 3 years)



$43.1 million / $23.4 thousand


AstraZeneca (AZN 1.93%)Endo Health Solutions (ENDP -6.82%)Pfizer (PFE 0.50%)

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

On CAPS, 96% of the 50 members who have rated Raptor believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star zzlangerhans, highlighted Raptor as a strictly short-term opportunity:

I'm a long-term skeptic on Raptor, but I believe the stock is due for a turn-around before the DR Cysteamine PDUFA for cystinosis on January 30. Will convenience and a reduction in side effects convince insurers to pay 10-20 times as much as they pay now for the current therapy? I doubt it, and I don't think traders buying into the PDUFA will stick around to find out. Far-fetched use of the same compound for Huntington's disease and NASH is still in pie-in-the-sky stage and won't provide much lift until late 2013. This is a quick ditch if I have a positive score going into the PDUFA.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, Raptor may not be your top choice.

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Stocks Mentioned

AstraZeneca PLC Stock Quote
AstraZeneca PLC
$64.54 (1.93%) $1.22
Pfizer Inc. Stock Quote
Pfizer Inc.
$50.65 (0.50%) $0.25
Endo International plc Stock Quote
Endo International plc
$0.58 (-6.82%) $0.04

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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