| Director Resigns at Wellcare Health A prominent director at WellCare Health Plans resigned Wednesday and raised questions about accounting practices at the Medicare and Medicaid company. online.wsj.com |
BUYINS.NET Updates Cord Blood America SqueezeTrigger Report (GlobeNewswire) NEWPORT BEACH, Calif. -- BUYINS.NET, http://www.buyins.net, a leading provider of Regulation SHO compliance monitoring, short sale trading statistics and market integrity surveillance, has updated coverage on Cord Blood America after releasing the latest short sale data through June 8, 2010. us.rd.yahoo.com |
Sanofi-Aventis on the Prowl The Burrill Report submits: by Marie DaghlianEver since CEO Chris Veihbacher took the helm of France’s largest pharmaceutical company in September 2008, he has actively looked outside Sanofi-Aventis (SNY) for ways to stem the impending loss of over one third of its revenue from patent expirations. A Burrill Report analysis shows that he has spent $17 billion to expand and diversify the company, including more than $9 billion in acquisitions ranging from small biotechs to companies focused on generic drugs, animal health, and emerging markets. Now, reports say he’s ready to eclipse that in a single deal. Complete Story » seekingalpha.com |
DUSA: A Great Value in Micro Cap Biotech Logical Thought submits:By far the best value story I know in microcap biotech is a company called DUSA Pharmaceuticals, Inc. (DUSA). DUSA combines a proprietary light-activated topical drug (the Levulan Kerastick) with a proprietary light system (BLU-U) that allows dermatologists (or their assistants) to treat patients for an increasingly common pre-cancerous skin lesion called an actinic keratosis (AK). The company has been growing revenues over 20% a year and gross margins on its core product have just hit 88%. The sole analyst (from Roth Capital) covering the company projects it will do $36.6 million in revenue this year and earn .04/share, and because of those very high gross margins and great top-line growth, the company is projected to earn .20/share in 2011. Additionally, it has almost $18 million in cash (with no debt), plus net operating losses which I estimate NPV (net present value) at around $5 million or so. The stock closed on Wednesday at $2.34/share, so with 24.2 million shares outstanding the market cap is $56.7 million, and if you net out $23 million for the cash and NOLs, you get an enterprise value of around $34 million, which is less than 1x projected 2010 revenue. Typically, a company growing the top line at around 20% a year (it even did this in 2009 over 2008, excluding some discontinued non-core products) with gross margins approaching 90% will sell at an EV of closer to 4x revenue. As noted above, for 2011 the company is projected to earn .20/share (a 400% increase over the 2010 estimate). With that kind of growth and gross margins, I believe that the stock very conservatively deserves a 20x multiple on that 2011 estimate, which is a valuation of $4/share, and with the cash and NOLs worth another $1/share, I see fair value here at $5/share. And if a larger pharma company buys the company, it could easily pay 4x to 5x revenue due to the SG&A savings (DUSA has a lot of sales & marketing overhead for a single-product company), which would be an acquisition price of $6 to $7/share, fully diluted. In short, I think this company is an outstanding value, and have a large position here.Complete Story » seekingalpha.com |
White House Revives Health-Care Push The Obama administration this week plans to revive its pitch for the health-care overhaul, hoping that a slate of consumer-friendly provisions will boost public support before midterm elections. online.wsj.com |