One company goes down; causes other to raise

But not all biotech stocks showed good returns today. Some showed significant losses: Enanta Pharmaceuticals, Inc. (ENTA) was down by 40.62%, Horizon Pharma plc (HZNP) closed 11.53% lower and Merrimack Pharmaceuticals, Inc. (MACK) lost 12.99%.

One of top gainers today is ZS Pharma, Inc. (ZSPH): shares went up and closed 19.7% higher. $1.61B company was popular today: almost 2 million shares were traded (comparing to 3 month daily average of 673K).

And its all because of its competitor’s Relypsa (RLYP) announcement. RLYP got its treatment Veltassa approved by FDA to sale on the US market to treat hyperkalemia. However, combined with other oral treatments Veltassa may lose it effectiveness. It made investors really worried about the future of Veltassa.

ZS Pharma has its own competitor to Veltassa called ZS-9 (now on late-stage development) which is also a treatment for hyperkalemia. It may be approved by FDA in 2016 and there no information about any negative effects of ZS-9. It may become serious competitive advantage over Veltassa (which is predicted to be sold over $1B)
ZS Pharma was founded in 2008. It has 71 employee. The last year EPS: -$4.17. Cash on hand: $232M, debt: $10.10M.

We forecast share price for ZS Pharma for the next 52 weeks at $75 what is good premium to the current price of $64.

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