Retrophin, Inc. (NASDAQ:RTRX)

CAPS Rating: 2 out of 5

Recs

4
Player Avatar zzlangerhans (99.70) Submitted: 1/27/2014 5:53:04 PM : Outperform Start Price: $10.54 RTRX Score: +8.61

It's funny how often you hear about a micro cap biopharma company quietly advancing their pipeline or operating under the radar. Retrophin CEO Martin Shkreli is a huge, blinking blip on every biopharma radar screen from Seeking Alpha to Twitter. I'm not sure how his outsized presence is affecting Retrophin's market capitalization, which is a relatively low 200M in a frothy market. I do think the investor mix is biased towards the more high-risk, speculative traders. While down from a spike to 13 after a recent successful secondary offering, Retrophin's share price has still tripled since the beginning of 2013. During that time Shkreli has been on a tear of pipeline acquisitions. The stable now includes the original lead compound sparsentan, a combined endothelin anatagonist/ARB acquired at low cost from Ligand, who in turn received it as part of their acquisition of Pharmacopeia who were developing it as DARA for hypertension; internally developed RE-024 phosphopantothenate analogues for treatment of PKAN; Syntocinon nasal spray (US rights purchased from Novartis) for stimulation of lactation and prospectively for schizophrenia; intranasal carbetocin (via Kyalin Biosciences acquisition) in development for autism; and RE-034 (cosyntropin) synthetic ACTH analogue for infantile spasms. Some of this pipeline is exceedingly speculative, but it's hard to deny that the orphan disease projects have the potential to catch fire even if they don't pan out in the long run.

We're waiting for the current storm to settle, but Retrophin does fit the zzporte model of relatively low-priced biopharma stocks with stong long-term potential and concrete catalysts. Expect a real position to be initiated within the coming days.

Report this Post 2 Replies
Member Avatar AsianMatter (42.31) Submitted: 4/14/2014 3:31:50 PM
Recs: 0

Hi zzlangerhans whats your opinion on the recent drop ? Good entry point ahead?

Thanks

AM

Member Avatar zzlangerhans (99.70) Submitted: 4/15/2014 4:05:49 PM
Recs: 1

Yes, good entry point ahead. How much ahead is the question.

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