Aegerion Pharmaceuticals, Inc. (
) recently announced its intention to raise funds through the
issuance of its common stock in an underwritten public
The funds raised through this offering should come in handy
for the commercialization of Aegerion's recently approved
Juxtapid. Juxtapid, which gained US Food and Drug Administration
(FDA) approval in Dec 2012, has been approved for the treatment
of patients suffering from homozygous familial
hypercholesterolemia (HoFH) as an adjunct to a low-fat diet and
other lipid-lowering therapies.
As part of its post-marketing requirements, the company is
required to conduct a juvenile toxicology study in rodents. The
study will provide information on the impact of Juxtapid on
growth and development. This study needs to be conducted before
the company can initiate a study in pediatric patients,
potentially in 2014.
Cash and cash equivalents at the end of 2012 was roughly $78
million to $83 million.
Neutral on Aegerion
We are encouraged with the US approval of Juxtapid. The
company recently provided guidance for 2013. For 2013, Aegerion
expects to generate revenue between $15 million to $25 million
assuming 250 to 300 patients are on Juxtapid therapy by the end
of the year.
Once Juxtapid is approved in the EU, the company expects to
achieve an annualized worldwide net revenues run rate of $100
million eighteen months after EU approval. The company also
expects to achieve cash flow breakeven from operations eighteen
months after EU approval.
However, we note that Isis Pharmaceuticals Inc. (
) is also looking to enter the market with its HoFH candidate,
Kynamro, which is currently under review in the US.
We currently have a Neutral recommendation on Aegerion. The
stock carries a Zacks Rank #4 (Sell). Right now, Cambrex
) looks attractive with a Zacks Rank #1 (Strong Buy).
AEGERION PHARMA (AEGR): Free Stock Analysis
CAMBREX CORP (CBM): Free Stock Analysis
ISIS PHARMACEUT (ISIS): Free Stock Analysis
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