One stock that we believe has been ignored in this current biotech rally is Ionis Pharmaceuticals (IONS), suggests biotech expert John McCamant, editor of The Medical Technology Stock Letter.
The company held a virtual meeting profiling its rather prolific neurology program. Its pipeline, both wholly-owned and with top-tier partners (e.g., Roche, BIIB, etc.) is incredibly deep and touches upon almost every major CNS disease and many rare, orphan diseases, as well.
The net message of its ~70 page presentation is that IONS’ platform for neurological diseases is as broad and comprehensive as any Big Pharma or Big Bio company out there.
Moreover, over the next 6-18 months, we expect to see various data releases on a handful of clinical trials from both IONS and its partners. Key late-stage, Phase III results in Huntington’s disease, TTR amyloidosis and ALS will become available during 2020/2021 — any of which can easily move the needle.
In addition, multiple Phase I/II trials are also due that, in these conditions, could readily provide strong enough POC evidence that reduces the overall risk profile of any individual compound.
Taken together, the diversification is impressive as well. By 2025, IONS predicts possibly NDA filings for more than 15 of its wholly-owned or partnered programs.
We believe that IONS’ neuro pipeline remains largely under-appreciated by investors. With almost $2 billion in cash and positive cash flow from blockbuster Spinraza, the company is well positioned to fund the clinical trials listed above and create shareholder value.
Lastly, as data is released by partners Roche and BIIB, we believe IONS represents a very strong takeover candidate, particularly in the current environment.
