Epizyme: Undervalued Rare Asset With Outsized Potential
- Lead drugs EPZ-5676 and EPZ-6438 are first-in-class HMT inhibitors that are backed by significant scientific literature and strong preclinical data.
- Considerable opportunity for short-term gains as investors buy shares ahead of clinical data expected in 2H14. Stock is expected to run up substantially in the interim.
- The bar for FDA approval of the company’s drugs is set relatively low as the agents are being developed to treat relapsed and refractory patients with ultra rare disorders.
- Story is significantly derisked as Celgene, GlaxoSmithKline, and Eisai are funding most of the company’s drug development pipeline.
- I derive a sum-of-the-parts based Price Target of $33.28/share with considerable opportunity for upside over the next few months and years.