Stock price when the opinion was issued
Their number 1 product is Botox and their number 2 product is eye drops, and there is some competition coming from generics for their eyedrops drug. Thinks that is what has been hurting the stock recently. When the technicals are working against you where a stock has fallen below the 200-day moving average, and the price is below both the 50 day and 100 day, technically you want to step away.
(A Top Pick September 14/17- Down 22%.) This was a high-risk position. They sold a drug to a native band and then they leased the rights back to circumvent potential generic competition. Something cheeky and probably that is why the stock sold off. Their strength is still in Botox and aesthetics. He doesn’t see that changing or being threat. He still likes it. Management is under the gun.
Form a valuation standpoint, trading at 10 times forward earnings with high single digit growth rate. But the stock keeps falling down. He would be very careful with this. Could be a value trap.