Aralez Pharmaceuticals was founded in 2015 with a headquarters in Mississauga, Ontario, Canada. At the current share price of $1.57, the company has a market cap of “only” $107 million.
ARLZ has quite the portfolio of Cardio Health and Pain Management products. As reported just two weeks ago, their Net Revenue increased 95% — to $105.9 million in 2017 from $54.3 million in 2016. However, their Profitability has currently been an issue and that’s something they’re really focusing on for the coming twelve months.
The reason I became interested in buying ARLZ around $1.60 is because of the CEO, Adrian Adams. Matthew Herper from Forbes did an article about him titled, “Want To Sell Your Drug Company? Hire This CEO“. Here’s a quick glance at his track record:
- As CEO of Auxilium Pharmaceuticals, he was able to sell to Endo International in January 2015 for $2.6B. (Source)
- As President & CEO, he was able to sell Inspire Pharmaceuticals to Merck in May 2011 for $430M. (Source)
- As President & CEO, he was able to sell Sepracor in 2010 to Dainippon Sumitomo Pharma for $2.6B. (Source)
- As President & CEO, he was able to sell Kos Pharmaceuticals to Abbott Laboratories in December 2006 for $3.7B. (Source)
So, you might agree it’s quite reasonable to think Adrian Adams was brought in to help streamline expenses by cutting unnecessary staff and ramp up sales staff. Now seems like a perfect time to point out the announcement in June 2017 where a new sales staff was targeting over 12,000 cardiologists. Check out this article from Seeking Alpha where the author even calls for a $4 share price in early 2018.
Another Seeking Alpha article from Steven Goldman on March 15th, 2018, says ARLZ is “Oversold and Undervalued”
Disclaimer: Follow the links, do your own due diligence. I wasn’t compensated in any way, shape, or form to write this article. As of the publishing of this article, I have no position, but I fully intend on buying a few thousand shares on Monday, March 26th, around the $1.60 range (or less, hopefully). I will patiently wait and see where this can go.
P.S. This stock was initially brought to my attention thanks to Kyle Dennis’ Biotech Breakouts “Sniper Report”. You can subscribe to this for an annual fee of just $99.