ISIS Pharmaceuticals, Inc. (ISIS): This Anti-Sense Bet Makes Sense

Earlier this year, the company received FDA approval for its LDL lowering drug, KYNAMRO. FDA has approved the drug for the treatment of inherited Cholesterol disorder Homozygous Familial Hypercholesterolemia (HoFH). In clinical trials ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS)’s heart treatment has cut down triglyceride levels by 72% and increased the HDL cholesterol (healthy) by 40%. According to sell-side estimates, the drug can have an annual sales potential of around $850 million. KYNAMRO will have to compete with Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR)‘s Juxtapid (lomitapide). The drug is expensive ($295,000) but has been supremely effective against HoFH. Aegerion valuations have shown significant resistance to the approval of KYNAMRO. Despite competition, the stock is up almost 160% in 2013.

While many would argue that the market for HoFH is too small, the approval actually proves the success of the antisense platform. The company has over 28 antisense drugs in the pipeline, most in partnership with key players like Roche, AstraZeneca, Pfizer Inc. (NYSE:PFE), GSK etc.

Bottom-line

The approval of KYNAMRO and positive Phase II data of ISIS-APOCIII is a testament to the mammoth potential of the Isis antisense platform. The approval of KYNAMRO has been priced in, but the company still has a lot of upside potential due to pipeline strength. The antisense platform has already proven itself, and the same technology can help against numerous other ailments. Despite a 160% rally in the last six months, the company is an excellent long term investment due to its pipeline strength and lucrative partnerships.

Mohsin Saeed has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Mohsin is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article This Anti-Sense Bet Makes Sense originally appeared on Fool.com and is written by Mohsin Saeed.

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