Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical 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 |
$422.6 million |
|
Industry |
Biotechnology |
|
Trailing-12-Month Revenue |
$10.9 million |
|
Management |
CEO David Perry (since 2002) |
|
Return on Capital (average, past 3 years) |
(105.7%) |
|
Cash/Debt |
$45.8 million / $27.7 million |
|
Competitors |
Johnson & Johnson |
Sources: S&P Capital IQ and Motley Fool CAPS.
Just yesterday, All-Star zzlangerhans touched on Anacor's seemingly unsustainable valuation:
[T]avaborole is likely to be an also-ran to Valeant's efinaconazole which has a substantially higher cure rate in phase III trials. Tavabarole is likely to be approved, but revenues will almost certainly be disappointing. A similar fate may await atopic dermatitis drug AN2728, which is yet to begin phase III trials but was only modestly efficacious in phase II.
As always, when a stock runs like this and attracts pumpers and momo traders I have no idea where the upward trajectory will end. Good chance I go deep into the red here, but a better chance I come out green in the end.
