A Synageva Board Member’s Trusts Bought Shares

Page 2 of 2

Some biotech companies with a similar market cap to Synageva despite also have negative profits forecast for 2012 are Dendreon Corporation (NASDAQ:DNDN), Halozyme Therapeutics, Inc. (NASDAQ:HALO), Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), and Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX). Dendreon is also a popular short target, with the short interest equal to 30% of the float, and that stock has fallen 54% in the last year as the company’s primary product has had a disappointing reception in the market. Halozyme has also slumped over the last year. The other two companies’ stocks are up, though not as strongly as Synageva’s: Alnylam has almost doubled from its levels a year ago while Lexicon is up 45%. Of course the recent performance of the stock price doesn’t tell investors much about the value of the business going forward, but we think it serves as a microcosm of the major news events that have befallen each company.

We like to be able to put our finger on some sort of value underpinning a company’s stock price, which generally amounts to earnings at least on a forward if not an a trailing basis. As a result we can’t say that it’s particularly wise to imitate this insider purchase in Synageva, though the size of the transaction is notable and is worth keeping in mind should more news unfold about the company.

Disclosure: I own no shares of any stock mentioned in this article.

Page 2 of 2