Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company Synageva BioPharma (NASDAQ: GEVA) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Synageva and see what CAPS investors are saying about the stock right now.
Synageva facts
|
Headquarters (founded) |
Lexington, Mass. (1996) |
|
Market Cap |
$1.2 billion |
|
Industry |
Biotechnology |
|
Trailing-12-Month Revenue |
$11.7 million |
|
Management |
CEO Sanj Patel (since 2008) |
|
Trailing-12-Month Return on Equity |
(29.2%) |
|
Cash/Debt |
$233.4 million / $0 |
|
Competitors |
Gilead Sciences (GILD -0.53%) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 83% of the 12 members who have rated Synageva believe the stock will underperform the S&P 500 going forward.
Earlier this week, one of those Fools, All-Star zzlangerhans, succinctly summed up the bear case for our community:
I imagine that Synageva bulls, who maintain a low profile, look to [Alexion Pharmaceuticals (ALXN)] as a model for a multi-billion company treating a single orphan disease. However, no other companies developing replacement therapies for orphan congenital diseases have come close to Alexion's success. ...
Synageva has only completed a single phase I/II trial of sebelipase alfa for CESD, and to the best of my knowledge has not announced concrete plans for further trials. ...
I also find it concerning that Synageva obtained their public listing via a reverse merger with zombie biopharma Trimeris in July 2011. That gave Synageva some cash, a dying HIV drug called Fuzeon, and the ability to avoid the scrutiny that comes with an IPO. ... The current valuation of Synageva reminds me of that of [Protalix Biotherapeutics (PLX -2.41%)] right before they crushed their shareholders with an 80% below market dilutive financing in 2007. Food for thought.
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