3 Little-Known Drugmakers That Deserve More Attention

3 Little-Known Drugmakers That Deserve More Attention January 12, 2017
By Mark Terry, BioSpace.com Breaking News Staff

Some biotech companies just fly under the radar, then catch everyone’s attention when they spike. Three writers with The Motley Fool pick their favorite companies that should inspire investors to take a look.

1. Teligent

Headquartered in Iselin, N.J., Teligent has sites in Buena, NJ, Toronto, Ontario and Tallinn, Estonia. Dubbed a “specialty generic,” the company’s focus is on the topical, injectable, complex, and ophthalmic markets. The Motley Fool’s Brian Feroldi writes, “The company’s products include a number of lotions, creams, and ointments. Each year a number of brand-name drugs from these categories lose patent protection, allowing Teligent to swoop in, make a generic, and send it off for regulatory approval. Once it gets the green light from regulators, it sells its product at a discount, allowing it to steal market share.”

It’s a business model that seems to be doing well, with the company’s revenue showing a steep and consistent rise. In 2016, the U.S. Food and Drug Administration (FDA) approved nine new products.

Teligent is currently trading for $7.02.

2. Synergy Pharmaceuticals

Based in New York City, on December 9, 2016, Synergy Pharmaceuticals announced positive topline results from one of two pivotal Phase III clinical trials of plecanatide in patients with irritable bowel syndrome with constipation (IBS-C). On December 22, it announced positive topline results from the second trial of plecanatide for the same indication. The FDA is expected to make a decision on January 29, 2017.

The Motley Fool’s Keith Speights thinks the approval is likely and the drug would have a huge market.

Synergy is currently trading for $6.59.

3. Portola Pharmaceuticals

Based in South San Francisco, Calif., Portola Pharmaceuticals is focused on hematologic disorders and inflammation. The company has had its ups-and-downs lately. In January 2015, shares rocketed with positive data on its Andexanet Alfa, a Factor Xa inhibitor antidote. Then, shortly afterwards, its second lead candidate, a heparin replacement called Betrixaban, failed to meet its primary endpoint in a Phase III trial.

So all eyes turned to Andexanet, expecting approval. Instead, the FDA issued a complete response letter (CRL) over some manufacturing issues. Then, because Portola is definitely a dramatic company, just a few weeks ago it announced a $50 million unsecured loan agreement with Pfizer and Bristol-Myers Squibb that will be repaid through future royalties. The two companies apparently have a lot of confidence in Portola.

So what does this all mean?

Well, The Motley Fool’s Cory Renauer suspect’s the company’s saga may soon be ending on a high note, and that both drugs have a good shot at approval.

Portola is currently trading at $24.69.

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