indianrider schreef op 13 januari 2020 23:30:
Pharming Group NV (AEX:PHARM): Set For A Swelling Growth In 2020
Every now and then The Golden Investor covers interesting stocks overseas. Today we end up in The Netherlands where Pharming Group NV (AEX:PHARM) is heading to grow exponentially this year and the years beyond. Their main product being Ruconest, a treatment against angioedema attacks in patients with hereditary angioedema.
Hereditary angioedema is a rare genetic condition which occurs in approximately 1 in 30,000 people worldwide. Symptoms include episodes of swelling in the hands, feet, abdomen, face and airway. Patients may suffer bouts of excruciating abdominal pain, nausea and vomiting that is exacerbated by swelling in the intestinal wall. Airway swelling is particularly dangerous and can lead to death by asphyxiation. Untreated, attacks can last between 48 and 120 hours and can be fatal.¹ The severeness of this disease is exactly the reason why Ruconest is such a great medicine, why Pharming Group was only profitable in 2018 and almost doubled its EPS in 2019.
This success is attributable to superior leadership by Sijmen de Vries who bought the commercial license for Ruconest back from Valeant Pharmaceuticals in 2016. Recently it announced that it also bought the Ruconest commercial license for another 36, mainly EU, countries. This will instantly increase their profitable and proves yet again the supreme leadership from this well managed company in an effort to boost their growth. Interesting fact: CEO's can be accountable for up to 30 percent of variance in ROA (Crossland et. al., 2007).²
If Pharming Group is able to grow their market share and revenue like they have been the last few years, this stock is up for a big jump. The right leadership and an increasing workforce are looking for additional indications for Ruconest and the broadening of their pipeline. In combination with an increase in R&D spending recent years this could potentially be the next Galapagos (AEX:GLPG).