Richard had stumbled onto something that few physicians today know, but was common knowledge two centuries ago. The fields of animal medicine and human medicine are brother and sister. Drugs that work for humans almost always work for animals, and drugs that work in animals virtually always work in humans. And diseases in animals, like Alzheimer’s disease, asthma, lupus, congestive heart failure, Crohn’s diseases, and cancer, are twins to those in people.
But despite this, there is a gap between the two fields. Veterinarians and physicians rarely talk to one another. Realizing this, Richard thought that perhaps, there might be hidden opportunities, drugs from the human pharmaceuticals field that might be developed for companion animals, drugs formerly forgotten or abandoned that could revolutionize care for animals.
As he looked further, he also discovered that veterinary market is just past a major tipping point. He found that it has recently become a vibrant, highly attractive field with low competition. In many ways, it echoes the human pharmaceutical field 30 or 40 years ago. That was the dawn of the golden age of pharmaceuticals when opportunity and profit were plentiful, reimbursement was simple, commercialization was affordable, and generics were obscure.
There are drugs, knowledge, and technology that exist on one side of the chasm between human and animal medicine that could transform medicine on the other side. KindredBio was founded to capitalize on this extraordinary opportunity and to carry the best medicines and technologies across this gap.
Kindred Biosciences, Inc., a development stage biopharmaceutical company, focuses on the development of therapies for pets. The company's product pipeline consists of small molecules and biologics for a range of indications in dogs, cats, and horses. Its lead product candidates include Zimeta, a dipyrone injection for the control of pyrexia (fever) in horses; and Mirataz, a mirtazapine transdermal ointment for the management of weight loss in cats. The company's other small molecule product candidates consist of KIND-014 for the treatment of equine gastric ulcers in horses; and KIND-015 for the management of clinical signs associated with equine metabolic syndrome. It is also developing biologics programs, such as KIND-510, a feline recombinant erythropoietin for the control of non-regenerative anemia in cats; KIND-011, an anti-tumor necrosis factor (TNF) treatment for newborn foals; KIND-502 for the treatment of allergic and immune-mediated diseases; KIND-0888, an antibody that targets CD20; various antibodies that target cytokines involved in atopic dermatitis; KIND-509, an antibody that targets the canine TNF; and KIND-Bodies, a novel biologics with certain advantages over antibodies, including bispecific binding. The company was founded in 2012 and is headquartered in Burlingame, California.
(Summary) (Company) (Chart)
24 September 2017
1yr Target $9.88
Payout Ratio 0.00%
1yr Cap Gain 33.51%
1yr Tot Return 33.51%
EPS (ttm) $-1.17
EPS next yr $-1.03
Forward P/E ---
EPS next 5yr 40.00%
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Market Cap $206.02 Mil
Revenues $--- Bil
Earnings $-24.80 Mil
Profit Margin ---
Quick Ratio 29.90
Current Ratio 29.90
1yr RevGR ---
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1yr EarnGR ---
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Over the last couple of decades the role of pets in our lives has changed. They have now become full members of the family. Illustrative of this, we spend $700 million every year on Valentine’s Day gifts for our beloved pets. We also spend $1.5 billion per year for knee surgeries for our dogs.
Today, there is a critical need for, and willingness to pay for, innovative medicines for our pets. However, there are very few companies dedicated to developing such therapies. It is a burgeoning market in dire need.
Kindred BioScience’s mission is to bring to our animal family members the same kind of innovative, breakthrough medicines that our human family members enjoy.
The Company's core strategy is to leverage the billions of dollars that have been invested by other companies in human pharmaceuticals by modifying, improving, and repurposing pre-existing drugs and targets that have already proven to be safe and effective in humans. For example, they are developing a canine version of Humira, one of the most successful human biologics on the market.
In addition, they develop most of their drugs and biologics for between $3 million to $5 million and in only 3 to 5 years. Given that most veterinary drugs reach peak sales between $10 million and $100 million per year, the Company believes that the return on investment is very attractive.
This companion animal biotech sector is where the human biotech sector was a generation ago. Kindred BioScience believes that the pet pharmaceutical industry is poised to replicate the tremendous success seen in the human pharmaceutical industry over the last 25 years.
Kindred BioScience is one of the pioneers in this pet biotech field, and they have one of the best teams and pipelines in the industry. Their goal is to continue to build on their leadership position and transform veterinary medicine.
This company is an interesting twist on the entire BioTechnology Sector, which seems to be red hot these days. And while this company is specifically narrowed in on Pet BioScience, I believe there's quite a bit of money to be made investing in this area. People continue to spend, spend, spend on their pets.
This investment has to be based on the stock chart alone. The data available on the fundamentals is sketchy at best, and nonexistent at times. Therefore I look for support and resistance lines. In this case, it appears that there's support just above $7 per share so that's probably the best place to put a buy in. At $7.40, we're pretty close to that area right now. And with a projected $9.88 price target, we'll get a nice 33% return. And the closer the price gets to $7, the closer the one year return gets to 40%.
At this price it's tempting to pick up a hundred shares and see where this thing goes. I'll be monitoring the quarterly reports to see what kind of year over year and quarter over quarter comparisons develop. If things continue to improve, this could end up being a very nice investment.