20 Oct 2013

Is Santarus :SNTS a Buy?

The company’s treatments for colitis, angioedema, and travelers’ diarrhea could triple—that’s right, triple—the company’s 2012 revenue.
How can this be?
  1. On January 14, 2013, the FDA approved its colitis treatment—pushing share prices 11% higher.

  2. In the five months since the company’s colitis treatment was launched, the company has seen sales jump $22 million, and we expect revenues to double again by year’s end.

  3. What’s more, the company’s new acid reflux product has one key advantage over its competitors: It offers the longest lasting acid control in the market—nearly 19 hours. The results will drive millions more in annual sales and earnings, not just for the next 90 days but for years to come.

  4. In addition, the company’s anti-diabetes agent just received a huge endorsement from the AACE (American Academy of Clinical Endocrinologists), whose guidelines doctors use in prescribing. With the annual diabetes market estimated at $35 billion, that’s like winning a $100 million lottery every year as tens of thousands of doctors begin to prescribe this company’s new treatments over the competition.

  5. As if that weren’t exciting enough, the company’s angioedema treatment just received orphan drug status from the FDA. As a result, the company will now receive millions of dollars in tax incentives, plus enhanced patented production and marketing rights—not to mention subsidies for its clinical research.
This is why the company’s stock price has soared 392% since I first recommended it in March 2012. With the analyst community expecting the company to declare another 150% earnings growth come November, we see the upward trajectory on this stock continuing for some time to come.

This is why, if you can add this one to your holdings before it declares earnings—and before the pension funds pile in—you could easily grab its next 100% gain by the end of the year.

Santarus Inc...
  • Has registered 89% sales growth and 2,032% earnings growth year over year,

  • Has analysts forecasting another 154% earnings rise come November,

  • Has a forward P/E ratio of—get this—just 15, and that’s after the stock has handed my readers 392% gains in 19 months,

  • Has a market cap of under $2 billion,

  • Has one of the strongest buy ratings of any of our stocks, and

  • Has just reported a 7.8% sales surprise and a 72.2% earnings surprise and raised its full-year outlook to $1.61 to $1.65 per share from $0.72 to $0.81 per share.
Throw in the fact that ObamaCare is about to funnel another 31 million potential customers its way and you can see why I’m convinced beyond doubt the company is going to clobber Wall Street and double investors’ money again.

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