Four Reasons to Buy This Biotechnology Stock

The agreement includes an upfront payment of $100 million to Isis. In addition, Isis is also entitled to receive milestone payments, license fees, and royalty payments for all treatments developed through the collaboration agreement. The agreement highlights one of the ways in which Isis is capitalizing on its breakthrough technology.

Partnership with Roche
Isis has also formed an alliance with Swiss drug major Roche to discover and develop antisense drugs to treat Huntington’s disease. The alliance brings together Isis’ antisense expertise and Roche’s scientific expertise in developing neurodegenerative therapeutics.

Under the terms of the agreement, Isis will receive an upfront payment of $30 million. In addition, Isis is eligible to receive up to $362 million in license fee, and pre-and post-licensing milestone payments. The company is also entitled to receive tiered royalties on sales of the drugs.

Reasons to watch Isis
As I mentioned earlier, Isis shares have surged almost 250% this year. Despite the substantial gains, there is still room for growth. This is because Isis has an innovative technology, which it is using to develop a broad pipeline of drugs. In addition, the company has entered into several strategic collaborations. Isis also has a very strong balance sheet, with more than $590 million in cash on hand. The strong cash position means that the company has the ability to advance its drug development programs. Based on these factors, I think Isis Pharmaceuticals is a compelling investment to watch in the biotech space.

The article 4 Reasons to Buy This Biotechnology Stock originally appeared on Fool.com and is written by Kanak Kanti, De.

Kanak Kanti De has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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