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MAXY, LXRX, LGND, KERX, ISIS, IDRA, Biomed - Genetics Stocks 51.19% undervalued


Published on 2011-01-26 12:42:05 - WOPRAI
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January 26, 2011 / M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Biomed - Genetics sector and these stocks are the most undervalued as of today. MAXYGEN INC (NASDAQ:MAXY), LEXICON PHARMACEUTICALS INC (NASDAQ:LXRX), LIGAND PHARMACEUTICALS-CL B (NASDAQ:LGND), KERYX BIOPHARMACEUTICALS (NASDAQ:KERX), ISIS PHARMACEUTICALS INC (NASDAQ:ISIS), IDERA PHARMACEUTICALS INC (NASDAQ:IDRA) are all expected to go Up as they are undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.

The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:

     Symbol     Company Name                        Last Close     Fair Value     Valuation                   Industry               
     MAXY       MAXYGEN INC                         4.04           8.28           51.19% undervalued          Biomed - Genetics      
     LXRX       LEXICON PHARMACEUTICALS INC         1.73           2.51           31.01% undervalued          Biomed - Genetics      
     LGND       LIGAND PHARMACEUTICALS-CL B         8.69           30.32          71.34% undervalued          Biomed - Genetics      
     KERX       KERYX BIOPHARMACEUTICALS            3.97           6.16           35.56% undervalued          Biomed - Genetics      
     ISIS       ISIS PHARMACEUTICALS INC            9.26           9.8            5.46% undervalued           Biomed - Genetics      
     IDRA       IDERA PHARMACEUTICALS INC           2.78           11.12          75.00% undervalued          Biomed - Genetics      

Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.

Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.

MAXYGEN INC (NASDAQ:MAXY) - Maxygen, Inc., a biopharmaceutical company, focuses on developing improved versions of protein drugs. The company utilizes its MolecularBreeding directed evolution technology platform, along with ancillary technologies, and protein modification expertise to pursue the creation of biosuperior proteins. It engages in the discovery, and research and development of multiple protein pharmaceutical programs, including CTLA-4 Ig product candidates that are designed to be CTLA-4 Ig therapeutics for the treatment of an array of autoimmune disorders, including rheumatoid arthritis, and transplant rejection; and MAXY-G34 product candidates for the treatment of chemotherapy-induced neutropenia. The company also focuses on developing biocatalytic process technologies for pharmaceutical, energy, and industrial chemical applications. Maxygen, Inc. was founded in 1996 and is headquartered in Redwood City, California.

LEXICON PHARMACEUTICALS INC (NASDAQ:LXRX) - Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the discovery and development of pharmaceutical products for the treatment of human disease, including immunology, metabolism, cardiology, and ophthalmology. The companys drug candidates include LX1031, which has completed Phase II clinical trials for the treatment of irritable bowel syndrome and other gastrointestinal disorders; LX4211 that has completed Phase II clinical trials to treat type 2 diabetes; LX2931, which is in Phase II clinical trials for the treatment of rheumatoid arthritis and other autoimmune diseases; and LX1032 that has completed Phase II clinical trials to treat the symptoms associated with carcinoid syndrome. It also has a preclinical development drug candidate, LX7101, for the treatment of glaucoma. The company has drug discovery alliances with Bristol-Myers Squibb Company; Genentech, Inc.; N.V. Organon; and Takeda Pharmaceutical Company Limited. It also has drug development financing collaboration with Symphony Icon; collaboration agreement with Taconic Farms, Inc.; and an alliance with Nuevolution A/S, which provides access to Nuevolutions Chemetics platform chemistry technology. The company was founded in 1995 and is headquartered in The Woodlands, Texas.

LIGAND PHARMACEUTICALS-CL B (NASDAQ:LGND) - Ligand Pharmaceuticals Incorporated, a biotechnology company, focuses on the discovery and development of pharmaceuticals for the critical unmet medical needs in the United States. It offers Avinza for the treatment of chronic pain; and Eltrombopag/Promacta for the treatment of thrombocytopenia in patients with chronic immune thrombocytopenic purpura (ITP). The companys products under food and drug administration review comprise Bazedoxifene and Lasofoxifene to treat osteoporosis; and Eltrombopag/Revolade for the treatment of ITP. Its products under Phase III include Bazedoxifene/Premarin for menopausal symptoms; and Eltrombopag to treat hepatitis C and chronic liver disease. The companys products under Phase II consist of PS433540, a dual acting receptor agonist that targets the angiotensin and endothelin receptors; LGD-4665 for the treatment of ITP; Eltrombopag to treat oncology related thrombocytopenia; PS291822 to prevent COPD and asthma; and PS540446 for the treatment of psoriasis and atherosclerosis. Ligands products under Phase I comprise Eltrombopag to treat oncology related thrombocytopenia; PS095760 for leukemia; PS386113 and PS873266 for inflammation; PS948115 to treat respiratory diseases; PS248288 for the treatment of metabolic related diseases; and PS178990 for muscle wasting. Its products under preclinical stage consist of BACE inhibitor for the treatment of Alzheimers disease; LGD-4033 for muscle wasting; CCR1 antagonist and glucocorticoid receptor modulator for inflammation; Erythropoietin receptor agonist for hematological indications; and receptor modulators for androgen independent prostate cancer. Ligand has research and development collaborations with pharmaceutical companies, including GlaxoSmithKline; Wyeth; Pfizer, Inc.; Schering-Plough Ltd.; Bristol-Myers Squibb Company; Cephalon, Inc.; Celgene Corporation; and Trevena. The company was founded in 1987 and is based in San Diego, California.

KERYX BIOPHARMACEUTICALS (NASDAQ:KERX) - Keryx Biopharmaceuticals, Inc., a biopharmaceutical company, focuses on the acquisition, development, and commercialization of pharmaceutical products for the treatment of life-threatening diseases, including cancer and renal disease. The companys products under development include KRX-0401 (perifosine), a phase III clinical stage product, which is an oral anti-cancer agent that inhibits Akt activation in the phosphoinositide 3-kinase (PI3K) pathway, and also affects other pathways associated with programmed cell death, cell growth, cell differentiation, and cell survival; and Zerenex (ferric citrate), an oral iron-based compound, which completed phase II clinical stage for the treatment of hyperphosphatemia in patients with end-stage renal disease. It has strategic alliances with AEterna Zentaris Inc.; Panion & BF Biotech, Inc.; Japan Tobacco Inc.; and Torii Pharmaceutical Co., Ltd. for the manufacture and commercialization of its products. Keryx Biopharmaceuticals, Inc. was founded in 1998 and is based in New York, New York.

ISIS PHARMACEUTICALS INC (NASDAQ:ISIS) - Isis Pharmaceuticals, Inc. engages in the discovery and development of a new class of drugs called antisense drugs using antisense technology, a novel drug discovery platform to generate a broad pipeline of first-in-class drugs. It develops antisense drugs focused on treating cardiovascular, metabolic and severe neurodegenerative diseases, and cancer for systemic, local, and inhaled delivery. The company has commercialized antisense drugs and has 22 drugs in development. Isis Pharmaceuticals has strategic alliances with GlaxoSmithKline, Genzyme Corporation, Archemix Corp., and Alnylam Pharmaceuticals, Inc. The company was founded in 1989 and is based in Carlsbad, California.

IDERA PHARMACEUTICALS INC (NASDAQ:IDRA) - Idera Pharmaceuticals, Inc., a biotechnology company, discovers and develops DNA- and RNA-based drug candidates for the treatment of infectious diseases, autoimmune and inflammatory diseases, cancer, and asthma and allergies, and for use as vaccine adjuvants. The company designs and creates proprietary Toll-Like Receptors (TLR) to modulate immune responses, including TLR agonist, a compound that stimulates an immune response through the targeted TLR; and TLR antagonist, a compound that blocks activation of an immune response through the targeted TLR. Its drug candidates include IMO-2125, a TLR9 agonist, which is in Phase 1 clinical trial for hepatitis C virus infection; and TLR7, 8, and 9 agonists that are in research stage for viral diseases. The company also develops IMO-3100, a dual TLR7/TLR9 antagonist, which is in preclinical development stage for autoimmune and inflammatory diseases, such as lupus, rheumatoid arthritis, multiple sclerosis, psoriasis, and colitis. In addition, its drug candidates also comprise TLR7 and TLR8 agonists that are in research stage for solid tumor cancers. The company has a licensing and collaboration agreement with Merck KGaA to research, develop, and commercialize TLR9 agonists for the treatment of cancer, excluding cancer vaccines; a license and research collaboration agreement with Merck & Co., Inc. to research, develop, and commercialize therapeutic and prophylactic vaccine products containing its TLR7, 8, and 9 agonists in the fields of cancer, infectious diseases, and Alzheimers disease; and a research collaboration and option agreement, and a license, development, and commercialization agreement with Novartis International Pharmaceutical, Ltd. to discover, develop, and commercialize TLR9 agonists for the treatment of asthma and allergies. The company was founded in 1989 and is based in Cambridge, Massachusetts.

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