TESARO (NASDAQ:TSRO)

CAPS Rating: 2 out of 5

Results 1 - 7 of 7

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Member Avatar pchop12316 (69.05) Submitted: 8/18/2014 10:21:10 AM : Outperform Start Price: $31.11 TSRO Score: -12.61

more price appreciation to come

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Member Avatar pchop123 (79.76) Submitted: 8/6/2014 4:43:11 PM : Outperform Start Price: $28.16 TSRO Score: -5.76

upside looks solid

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Member Avatar CramersSkeeDaddy (98.02) Submitted: 7/10/2014 2:38:58 PM : Outperform Start Price: $32.13 TSRO Score: -15.64

fly to the moon in late 2014, pending FDA and/or positive clinical results. Step aboard the rocket (maybe wait until after the correction in real life).

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Member Avatar Flygal5 (98.82) Submitted: 7/8/2014 6:48:08 PM : Outperform Start Price: $33.39 TSRO Score: -18.70

4 cancer drugs

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Member Avatar zzlangerhans (99.84) Submitted: 3/17/2014 11:10:45 PM : Outperform Start Price: $35.32 TSRO Score: -28.45

Welcome to the biopharma sector 2014, where a company can announce they have inlicensed preclinical compounds for an upfront payment of 17M in the premarket and the stock will have added 300M in market cap by the end of the session. How exactly do buyers justify this kind of math? Well, the short answer is that they don't. In markets like this, the share price movement becomes its own justification. Look at Opko - that company's market cap has continued to appreciate for years despite the company's never having generated positive cash flow from any of their myriad projects and purchases.

If Tesaro intends to follow in Opko's footsteps, they appear to have been good students of Philip Frost's technique. They've assembled a coterie of diverse, hard-to-value programs and show no sign of slowing down. Their latest deal for mAb checkpoint inhibitors from AnaptysBio has industry watchers scratching their heads. The collection of preclinical antibodies can't be worth 17M and 300M at the same time. Somebody has to be getting the short end of the stick. AnaptysBio has no shortage of suitors, counting Celgene, Gilead, Merck and Roche among their partners. Clearly, they know how to deal and presumably they know the value of their own internally discovered candidates. They're not about to give away high potential drugs for chump change.

It seems more likely to me that Tesaro is more interested in purchasing pipeline than seeing candidates through to approval and commercialization. Checkpoint inhibitors are one of the hottest drug categories out there right now, and a stable of these in the preclinical stage can justify raising capital for five or more years before they ultimately prove ineffective. The first clinical trials of the licensed candidates won't even begin for 18-24 months. In the meantime, Tesaro will be seeking approval of the wounded anti-emetic rolapitant and progressing trials of their PARP inhibitor niraparib and ALK inhibitor TSR-011.

I realize this review hardly seems to me to be the stuff of green thumbs, but I'm attempting to adapt to the biopharma bull market in which stories matter more than real performance. Portefeuille has flagged Tesaro as a likely outperformer and therefore I've suspended disbelief and purchased 200 shares at 35.4 for the zzporte portfolio. Hopefully either I'm wrong about Tesaro's long-term potential or we'll find a greater fool to sell our shares to over 40.

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Member Avatar IBDContrarian (< 20) Submitted: 11/30/2012 11:22:59 AM : Underperform Start Price: $18.30 TSRO Score: -9.18

IBD EPS, RS, SPROE, Acc ratings plus P/E and div yield
MEDICAL 1 97 ..A, NEG EARNINGS

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Member Avatar orangeandblue2 (62.95) Submitted: 11/9/2012 6:21:09 PM : Outperform Start Price: $15.96 TSRO Score: +27.34

Jim Cramer approved spec play.

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