Drug Manufacturer Drawing Attention

It’s shaping up to be another rollercoaster week in the markets. At the end of Tuesday the DOW was up almost 300 points from its low on Monday. Then Wednesday opened to a massive selloff.

Despite the volatility there are some interesting value stocks out there to keep on your radar.

 

QUICK FACTS

Ticker                                      ALTH

Industry                                   Drug Manufacturer – Other

Recent Price                          $1.47

Market Cap                             $155.4 m

Shares Outstanding               105.7 m

Average Volume                      257,446

Dividend Yield                          N/A

Website                                   http://www.allos.com

 

COMPANY DESCRIPTION

Allos Therapeutics (ALTH) is a biopharmaceutical company that develops, manufactures and markets cancer treatments. More specifically they focus on FOLOTYN, otherwise known as a pralatrexate injection.

Pralatrexate is a “small molecule” chemotherapy treatment that received FDA approval in 2009. This type of treatment is primarily for people with serious cases of T-cell lymphoma. FOLOTYN is administered during an outpatient procedure and delivered with an IV.

The company sells their FOLOYTN to wholesale distributors who then sell it to healthcare service providers.

 

FINANCIALS

Allos’ third quarter numbers were just released a week ago.

The company reported revenue of $14.2 million in the third quarter, down from last quarter’s revenue of $39.1 million.  This is a decrease of 66.3% from last quarter.  ALTH also reported a net loss of $11.2 million… a sharp drop from last quarter’s profit of $2.1 million.

As of September 30, 2011, the company reported $69.6 million in cash and no long term debt.

 

 KEY METRICS ANALYSIS

Trailing P/E                                       N/A

Price / Sales                                     2.3 x

Return on Assets                             N/A

Insider ownership                             1.6%

Short Ratio                                        5.5 x

Current Ratio                                    4.3 x

Total Debt To Equity                           N/A

 

RECENT EVENTS

During the third quarter Allos was nearly bought up by AMAG Pharmaceuticals Inc. (AMAG). The deal planned in October would have been a buyout at $2.44 a share. Another company was temporarily in the bidding at $2.20 a share but they pulled their offer off the table. ALTH shareholders would have received 0.12 shares of AMAG for each share of ALTH they owned.

Then later in October AMAG’s shareholders voted against the idea. That may have contributed to the resignation of AMAG’s CEO on November 4. The silver lining for Allos is the $2 million breakup fee they are owed by AMAG.

 

MANAGEMENT TEAM

Paul L. Berns – CEO

Bruce K. Bennett – Vice President, Pharmaceutical Operations

David C. Clark – Vice President, Finance and Treasurer

Bruce A. Goldsmith, Ph.D. – Senior Vice President, Corporate Development


STOCK ANALYSIS

 

 

 

 

 

 

Chart Courtesy of StockCharts.com

 

ALTH’ 52-week low was $1.28 and the 52-week high was $4.81.  Right now the stock is trading at $1.47.  The 50-day moving average is near $1.60 a share and the 200-day moving average is at $1.94.  The company has a market cap of $155.4 million and 105.7 million shares outstanding.

 

 

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