Raptor Pharmaceutical Corp. (RPTP), Mylan Inc. (MYL), Forest Laboratories, Inc. (FRX): Will You Adopt This Orphan Drug?

My take

Being an orphan drug, Procysbi is assured of protection against competition from generic products for a period of seven years. However, it has Mylan Inc. (NASDAQ:MYL)’s Cystagon to contend with, which is priced at $8,000 a year against Procysbi’s roughly $250,000-a-year price tag.

According to Bloomberg, potential sales of Procysbi in 2015 are estimated to be $77 million. Even if we add another $60 million (from European sales, assuming that it is approved by the EMA) at a current valuation around $740 million, the market is valuing Raptor at roughly five times its worldwide peak sales. In terms of the drugs in its pipeline, until it starts showing positive results in mid-stage trials, I’ll wait to assess the potential of RP103 in treatment of HD. For the moment, I’m happy to sit on the sidelines.

The article Will You Adopt This Orphan Drug? originally appeared on Fool.com and is written by Kanak Kanti De.

Kanak Kanti De has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 

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