ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS)

This biotech has been "promising" for two decades but its platform seems finally at a critical mass with several drugs poised ( in collaboration with larger, pharma companies ) to enter the market, especially in areas not well-served by other drugs. Intrinsically, the platform should entail fewer side effects than more traditional drugs.

There are currently 16000 ISIS shares in my "fund" with break-even of around 8.39 USD. http://caps.fool.com/Blogs/fund-trades/678775.

Buyout Potential!

http://www.caseyresearch.com/crpmkt/Biotech2.php

A panel of top research/practicing cardiologists explained that the elevation of liver enzymes is common in patients with cardiovascular diseases. They expressed that reducing extremely high cholesterol levels in their patients far-outweighs the often temporary elevation of liver enzymes.

RNAi, please die.

Key antisense technology and substantial pipeline combined with 450M$ in cash to finance their development. Stock should double within a year.

Creative, new treatments that work, patent pipeline

great price!

valuable patents strong balance sheet valuable partnerships with pharmacuetical companies capitalization low could be ripe for a buyout at double the current price

Isis, like many small biotechs and pharmas, can be looked at as a microcosm of the stock market as a whole. There's always a bull case and a bear case, but baby biotechs rarely follow a straight trajectory upward or downward for any significant period of time. As in the sideways S&P that we are currently saddled with, we must constantly readjust our perspective based on the valuation that the market assigns. Perma-bulls and perma-bears will get whipsawed and never make any progress in their portfolios.

The bear perspective on Isis currently has the upper hand. Four phase III trials of mipomersen for hypercholesterolemia have been completed and the story remains consistent - the drug is effective at lowering cholesterol but confers a high risk of developing elevated liver enzymes, a potential precursor of irreversible liver injury. Pipeline candidates have been discontinued for less. And Big Daddy Genzyme has been the subject of takeover rumors, raising concerns that mipomersen may end up being returned to Isis on a Tupperware platter. So far in the month of August, momentum has been downward.

In the rush to sell, investors have likely discounted the fact that Isis' 900M market cap will be supported by about 550M in cash once earnings are released August 9. Isis appears to be the corporate leader in anti-sense technology, despite mipomersen's failings, and has other anti-sense drug candidates to treat diabetes advancing in their pipeline. Besides the potential of these new drugs, the technology platform and strong financial position will keep Isis on the short list of companies that may be acquired once the pendulum swings back in the direction of growth.

At a share price over 12, which would correspond to an enterprise value of 900M, I'd certainly have a jaundiced view of Isis' short-term prospects (so to speak). But at the current price of 9 and enterprise value of 600M, I'll play Isis in CAPS for a short-term rebound as they remind the investing community of their proprietary anti-sense platform and other pipeline candidates, and prepare their mipomersen NDA for H1 2011.

best business model in biotech field, antisense drugs will be proven winners

Buy $9 and sell $11 a couple of times a year.

Fantastic growth potential and long term contracts with major pharmas

Leading developer of cholesterol controlling drugs with positive phase III results in a climate of aging baby boomers.

Isis took a unfortunate dip, but I am certain it is going to
come back up strong

With over 1700 owned/controlled patents in the most cutting edge biotechnology arenas, plus over 600 million dollars of cash on hand, the current market cap of ISIS is ( to put it mildly) ridiculous.

Hoping the Liver problem is found to be incorrect or fixed, stock will go back up.

I expect a turnaround with decent pipeline