NewLink Genetics Corp (NLNK): Three Therapeutic Approaches That Are Worthy of Your Due Diligence

VS-6063 is just the beginning of the company’s pipeline. It then has VS-4718 to target cancer stem cells and a small molecule inhibitor VS-5584. With the chemotherapy market being $15 billion annually, and there being no form to prevent disease recurrence, it seems likely that Verastem’s next generation chemotherapy could be very successful in this large market; although no peak sales have been established.

As a result, with Verastem’s programs being early stage, I would watch the company closely over the next few years.

Attacking HCV from all angles

The final company is worth $300 million, Enanta Pharmaceuticals Inc (NASDAQ:ENTA). Here’s a company with two Phase 3 and two Phase 2 programs in the treatment of HCV (Hepatitis C Virus) as well as five other products in its pipeline. Not to mention, the company already has partnerships with the likes of AbbVie Inc (NYSE:ABBV) and Novartis AG (ADR) (NYSE:NVS).

So what makes Enanta Pharmaceuticals Inc (NASDAQ:ENTA)’s approach as innovative as NewLink’s multi-cancer and Verastem’s second-gen chemotherapy approach? Well, Enanta has specifically developed its late-stage products to be used in conjunction with other HCV drugs. Already, Enanta is targeting the disease from four different approaches, meaning that each of its drugs will build off the other, thus creating larger sales potential.

Over the next 10 years, the HCV market could become a $20 billion industry. Since Enanta’s drugs work in conjunction with both other drugs and its own products, the company looks poised to control a piece of this market; although peak sales are yet to be determined.

Conclusion

I like each of these companies and their therapeutic approaches. If I were still working in the space, these are the exact type of companies that I would recommend Pfizer Inc. (NYSE:PFE) or Bristol Myers Squibb Co. (NYSE:BMY) buy/partner – but for retail investors – I think it depends on your time horizon.

If you seek short-term gains, than NewLink Genetics Corp (NASDAQ:NLNK) is the most advanced. If you seek the largest long-term gains, then I think Verastem’s approach is most striking, due to chemotherapy being so widely used. If you’re looking for security, then I’d go with Enanta and the protection of having large partners. When it’s all said and done, I think all are great, and will be market leaders in the future.

Sherrie Stone owns shares of NewLink Genetics, Verastem. The Motley Fool has no position in any of the stocks mentioned. Sherrie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Three Therapeutic Approaches That Are Worthy of Your Due Diligence originally appeared on Fool.com and is written by Sherrie Stone.

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