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RTRX - Retrophin


Vish_ram

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This is a company Gio might love.

 

Martin Shkreli is the CEO and founder. It has had a controversial beginnings with going public from a reverse merger. The CEO is young, brash with a terrific record in a biotech hedge fund. He has earned the wrath of many biotech investors by going short. His record is here http://seekingalpha.com/author/martin-shkreli/instablog

 

He calls RTRX a M&A company. He has bought companies in quick succession. The PR http://finance.yahoo.com/news/retrophin-enters-u-license-agreement-204100983.html . If the forecasts become true, it will trade at a P/E multiple of 10 or less.

 

Shkreli is young (31), brilliant, hungry and raring to go. this article sums up everything about him. He has the unique experience of being in hedge fund, and now in operations. He doesn't court sell side analysts.

 

http://www.businessweek.com/articles/2014-04-17/retrophins-martin-shkreli-the-biotech-short-seller-who-went-long?campaign_id=yhoo

 

This is a biotech and risky. But this is a co to watch. I like his strategy of acquisition, raising prices (Like Qcor's Acthar), and laser focus on rare disease areas.

 

His twitter posts are sometimes unprofessional (like F U). You'll hear more about him & Retrophin in the future.

 

Disclaimer: I've a small position

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They used to borrow money at extremely high interest rates in the past.  Usually not a good sign.

G&A is also rather high.

 

Then again, Martin Shkreli seems like a maverick and he is very smart.  Even smart enough to paint the tape with insider buying.  I don't think I'd want to go long biotechs right now given the valuations.  Biotech is probably in a bubble right now.

 

*Disclosure:  Shorted this in the past, covered at a very small profit.  There are many better biotech shorts out there.

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  • 3 years later...
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Cuurent market Cap = $790M

Commercial portfolio generates at least $165M a year

& they have $440M in cash on balance sheet ( downside protection)

 

Friend at biotech fund says this is interesting risk/reward given a number of upcoming catalysts ( potential FDA approvals)

 

Anyone follow RTRX?

 

 

 

 

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Cuurent market Cap = $790M

Commercial portfolio generates at least $165M a year

& they have $440M in cash on balance sheet ( downside protection)

 

Friend at biotech fund says this is interesting risk/reward given a number of upcoming catalysts ( potential FDA approvals)

 

Anyone follow RTRX?

 

 

 

 

 

Your friend have any idea why the stock has been lagging or why it's trading cheap on the numbers. I wonder if there is a concern if their existing revenue goes away so not really as cheap as it screens?

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Cuurent market Cap = $790M

Commercial portfolio generates at least $165M a year

& they have $440M in cash on balance sheet ( downside protection)

 

Friend at biotech fund says this is interesting risk/reward given a number of upcoming catalysts ( potential FDA approvals)

 

Anyone follow RTRX?

 

The revs are trash.  They came from buying old drugs and hiking the prices a gazillion percent.  That's why it screens so cheap. 

 

Google Martin Shkreli retrophin and get out the popcorn.

 

The real catalysts are the upcoming trial readouts which I have no view on.

 

 

 

 

Your friend have any idea why the stock has been lagging or why it's trading cheap on the numbers. I wonder if there is a concern if their existing revenue goes away so not really as cheap as it screens?

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Read this-Multiple more catalysts

 

Retrophin: Highly Investable, Except For A 'Pharma Bro' Problem

https://seekingalpha.com/article/4274126-retrophin-highly-investable-except-pharma-bro-problem

 

Looks like 1 of the 3 Phase 3 trials failed. At these valuation levels (about $150 million of enterprise value, or $400 million including convert due in 2025), burned $50 million of cash last year, seems like you're not paying much for the company. Might be even better risk/reward here even with the 1 failed Phase 3.

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