Acura research report, why not a big seller?

Discussion in 'Pfizer' started by Anonymous, Jul 26, 2011 at 6:03 PM.

Tags: Add Tags
  1. Anonymous

    Anonymous Guest

    I used to follow and own this, and have revisited the situation with the stock so low and the drug approved. What's going on? I doubt anyone on this board can answer that, but I find it amazing that a well respected analyst on this stock had a $40 target in his model for a few years after the first drug was approved. Now, this was the niacin version, but Acura says that their market research indicates that their drugs will disproportionately replace the existing IR opioids, according to the market research they've done. What in the world is the counter-argument to put this stock at $3 and change?

    Here's the report. I know Corey Davis has moved to Jeffries, but he's very well respected and qualified. He's got over $2B in revenue for Acura's platform a few years out.

    http://www.mediafire.com/?x9n2u2lacdwi3z2

    https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B8HiRn7JVl_zMTVmMGM3NjQtZDA5MC00ZjZmLWEzMTQtY2E1NjVjYWIzNTRj&hl=en_US


    Here's the info on Davis:

    http://investing.businessweek.com/businessweek/resear ch/stocks/private/person.asp?personId=26858076=22401937 &previousCapId=987036&previousTitle=APPLIED%20MINERALS% 20INC

    Dr. Corey B. Davis serves as a Managing Director and Analyst at Jefferies & Company, Inc., Research Division. He covers the pharmaceuticals and specialty in the healthcare sector of U.S. equity research. Prior to this, he was an Equity Analyst at JP Morgan Chase & Co, Research Division. Previously, Dr. Davis was a Managing Director and Senior Analyst at Natixis Bleichroeder Inc., Research Division covering specialty pharmaceuticals. Prior to that, he was a Vice President at JP Morgan (and its predecessor Hambrecht and Quist), where he spent nine years. Dr. Davis was also employed at HSBC Holdings plc, Research Division. He served as Director of Applied Natural Gas Fuels, Inc. since November 21, 2008. Dr. Davis was named to the Institutional Investor All-America Research Team for several years. He holds BS in Finance from Georgetown University in 1994 and MBA from Harvard Business School 1998.

    I have no idea what kind of story is floating around that is holding this down, but this company will have 5 drugs on the market by end of 2012, 4 opioids and a pseudoephedrine that should ultimately be the only version of that drug that is allowed to be sold anywhere. Don't be scared out of your position by short-term aberrations. In fact, take advantage of it by buying more.

    Here's what Acura discloses about the markets for their products.

    http://acurapharm.com/our-business/markets-for-abuse/

    It sure sounds like it has multi-billion dollar potential. Has anyone come up with a reason why this stock isn't way undervalued?

    what do you sales reps think?