Although I like HZNP, and have a 3.5% position in it, please don’t anyone get carried away and take a 10% or 15% position. They have only three money-producing products at present, and if one of those runs into a problem, that could cause a lot of difficulties for the company and the stock.
JMO
Saul
Great post, Saul.
I always appreciate a realistic cautionary post. I am going to open a starting position in the morning.
Jim
I don’t understand why this company is doing well. Their 3 drugs are:
ibuprofen/famotidine (ie advil/pepcid) both cheap and over the counter, but now available in what is likely an expensive prescription only combination.
naproxen/esomeprazole (ie aleve and a proton pump inhibitor antacid). Similar equivalents also available cheaply over the counter. (prilosec/omeprazole and prevacid/lansoprazole).
And prednisone slow release.
Prednisone is already inexpensive and has once daily dosing, so I’m not sure there is a medically significant benefit to this new slow release preparation.
HZNP may be a winning investment and company, but as a prescriber and from a medical standpoint, I just can’t get excited about them.
I also couldn’t get excited about another wings restaurant chain (BWLD) looks like I was wrong there.
-Brandon
brandon,
It’s not clear to me either what their secret sauce is. However their revenue is growing at an astounding rate, and they hadn’t even started marketing their Zimovo product yet.
It’s a gift horse. Who knows if it has any teeth, but I’m not looking at this point.
Saul