Disclaimer: NOT investment advice, always do your own due diligence and seek your financial advisers and be responsible for your own trade/investment. These are our notes, idea, and opinion only.
- Note: Elite stocks are for investment holding with time frame 6-12months hold or until reach our target 20-30% gain. There will be update if thesis changes or new found information from the company.
Profile: Akebia Therapeutics, Inc., a biopharmaceutical company, focuses on the development and commercialization of proprietary therapeutics based on hypoxia inducible factor (HIF) biology for patients with kidney disease. http://akebia.com/
Pipeline: The leading product is Vadadustat is an investigational drug being studied for the treatment of anemia associated with chronic kidney disease (CKD), currently enrollment in Phase 3 program in NDD-CKD in Dec 2015 and phase 3 DD-CKD in August 2016. Clinical trial for DD-CKD https://clinicaltrials.gov/ct2/show/NCT03054350?term=akebia&rank=1 and Clinical trial for NDD-CKD https://clinicaltrials.gov/ct2/show/NCT03054337?term=akebia&rank=2
From the company site “In the phase 2a trial vadadustat significantly increased hemoglobin levels compared to baseline in a dose-dependent manner across all treatment arms (P < .0001). There are NO drug-related serious adverse event were reported. Dosing were tolerated.
- Feb 13, 2017 Licenses Portfolio of Novel HIF Compounds from Johnson & Johnson Innovation http://ir.akebia.com/releasedetail.cfm?ReleaseID=1011522
- Dec 20, 2016 and Otsuka Pharmaceutical Announce Collaboration to Develop and Commercialize Vadadustat in the U.S. http://ir.akebia.com/releasedetail.cfm?ReleaseID=1004962
- From Collaboration with Otsuka Pharm: Committed Capital and Potential Milestone Payments Could Exceed $1 Billion, Akebia will receive $265 million in committed funds plus development and commercial milestones. Stock current market cap at $348 as of March 7, 2017.
- The company ended 2016 with cash, cash equivalents and available for sale securities of $260.3 million. The company expects cash resources, together with the timing of amounts expected to be received from collaborators, including a $33.8 million payment from Otsuka received in March of 2017, to fund the current operating plan into mid-2018.
- R&D expenses were $33.4 million in Q4 ’16 and $115.8m full year 2016 compared to $43million in 2015. largely due to expenses for phase three studies.
- Chronic Kidney Disease (CKD) drug market will increase to $11.7 billion in 2022
- AKBA Vadadustat may be the new leader of CKD in future.
- Market cap size valuation is cheap vs the collaboration investment from Otsuka Pharmaceutical
- Less follow, less pump, less crowded, and therefore, made a good investment to hold.
Price target: $12-14
(AKBA sold off today as reaction on Q4 earnings; http://ir.akebia.com/releasedetail.cfm?ReleaseID=1016104; Price action may react further to near 8.4/ 8; Prcie is what you pay, value is what you get. ).
~~~~~~~~~~Update info 4/25/17~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~