"We believe that anti-sense technology represents an exciting and potentially revolutionary platform for developing therapeutic candidates to treat a wide range of diseases. In our view, anti-sense, as a platform, is today where biologics were 10 years ago. The company’s leading candidates are ISIS-301012 for high cholesterol and ISIS-113715 for diabetes, along with several partnered programs for oncology, inflammatory disease, asthma, and viral infections. Our financial model forecasts profitability in 2010.
"We are big fans of anti-sense technology and believe that the number of potential therapeutic applications is enormous. Anti-sense drugs may have significant potential to treat a number of diseases where small molecule and biologic compounds have failed.
"Although still early stage, anti-sense technology as a platform for developing drugs reminds us greatly of the promise of biologic drugs over a decade ago. Potential mechanisms such as siRNA, RNAi, alternate splicing, and micro RNA have the potential to change how we treat diseases in the years to come.
"Thanks to collaborations with some of the big names in the pharma sector, Isis has put itself in a constant position to receive developmental milestone. This is evident by the $26.5 million from Alnylam (ALNY) and the $50 million from J&J (JNJ) just in the past few months. We believe that Isis has plenty of cash to fund operations for the next several years.
"We are keeping our Buy rating on Isis Pharmaceuticals and raising our target to $20. Our price target is derived by discounting our 2011 EPS of $1.76 back to present day at 20% using a 25x multiple."