Santarus, Inc. (SNTS), Aegerion Pharmaceuticals, Inc. (AEGR), Ariad Pharmaceuticals, Inc. (ARIA): Did a Strong New Drug Make This Biotech Overvalued?

Phase 3 trials are under way for Rifamycin SV MMX — a treatment for intestinal infections and a globetrotting condition called travelers’ diarrhea, And the pipeline is finished off with rheumatoid arthritis project SAN-300, which will initiate phase 2 trials near the end of this year.

Performance comparison
I previously compared Santarus’ price over the past year compared to Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR) and Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA). Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR) launched Juxtipid  for severely high cholesterol and Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) launched leukemia drug Iclusig.

Here’s a closer look at the trio, measuring their total return compared to the S&P 500.

SNTS Total Return Price data by YCharts.

Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) is below the S&P as it deflates from some of the Iclusig anticipation. Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR) has had another growth journey thanks to encouraging Juxtipid sales in the second quarter. But Santarus, Inc. (NASDAQ:SNTS) has the most products of the three and is the only one reacting to more than one product showing strength.

Foolish final thoughts
Santarus seems fairly valued at this time. The large growth over the past year was powered by the strong return of Zegerid, the launch of a new drug, and Santarus’ second quarter beating expectations. Santarus could run into some trouble in a couple of years when Zegerid and Glumetza head for the patent cliff, but there’s still time to adjust for that inevitability.

The article Did a Strong New Drug Make This Biotech Overvalued? originally appeared on Fool.com and is written by Brandy Betz.

Brandy Betz has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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