CV Therapeutics looks to be on a good trajectory.
CV Therapeutics (NASDAQ: CVTX, Stock Forum) probably deserves yet another look from biotech investors. Its last quarter was better than expected, and the company looks like it is on a very good trajectory.
In the first quarter, CVTX managed to do a better job with expenses than it recently has and sales of its core product, chronic angina drug Ranexa, jumped.
In light of this, the stock may be too low. It trades at $8.70, well below its 52-week high of $13.74.
For Q1, CVXT reported a net loss of $31.9 million. In the same period a year ago, the firm had a net loss of $34.1 million. Revenue went to $22.8 million from just over $15 million last year.
CV also disclosed what most investors view as very good news. The company said that that TPG-Axon Capital agreed to pay CV Therapeutics up to $185 million in exchange for rights to 50% of the royalty on North American sales of the Lexiscan (TM) (regadenoson) injection. Is the firm giving up too much of its future sales? It is too early to tell.
At 5x sales, the shares look attractive.
