Michael Sacerdote

Agios: Risk Without Reward

For those noble individuals who equate money with sin, Agios (NASDAQ:AGIO) offers a sublime opportunity to watch capital evaporate. Agios is one of the beneficiaries of the frothy market for biotech IPOs, having raised more than $100 million in its IPO in July 2013. Shares have soared after the biotech sell-off last autumn, rising 150% since the November low of $15.77. At a market cap of $1.3 billion, Agios has already joined the big leagues. The only problem is that none of the company's drug prospects have moved beyond phase 1 trials. With the market already pricing in a greater than 100% likelihood of success for AGIO's lead compound AG-348, investors can only lose by owning AGIO stock....

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