Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Anacor Pharmaceuticals (NASDAQ: ANAC) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Anacor and see what CAPS investors are saying about the stock right now.
Anacor facts
|
Headquarters (founded) |
Palo Alto, Calif. (2000) |
|
Market Cap |
$224.6 million |
|
Industry |
Biotechnology |
|
Trailing-12-Month Revenue |
$10.7 million |
|
Management |
CEO David Perry |
|
Return on Capital (average, past 3 years) |
(62.1%) |
|
Cash/Debt |
$45.5 million / $25.7 million |
|
Competitors |
Johnson & Johnson |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 40% of the 43 members who have rated Anacor believe the stock will underperform the S&P 500 going forward.
Earlier this morning, one of those Fools, All-Star zzlangerhans, succinctly summed up the Anacor bear case for our community:
As predicted, in March the stock rebounded from the weak phase III performance of tavaborole with positive results from dose-ranging phase II trial of AN2728 in atopic dermatitis. But [$220M] is simply too much for a phase II drug in the crowded indication of atopic dermatitis. Anacor will certainly raise big before getting close to topline data from a phase III trial of AN2728, and approval of Valeant's efinaconazole in May will provide another nail for tavaborole's coffin.
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