2/08/2016

Speculative: Below Net Cash, Talented Management, Positive Insider And Guru Value Ownership


KIN price on post date 02/08/16 = $3.34

Click for current price  

this post is a continued update of yesterday's post "Value Ideas Posting Negative Returns after Value Guru Purchases"

Kindred Biosciences, Inc. (KIN): is a speculative development-stage biopharmaceutical company (no reported revenues as of 02/08/16) focused on saving and improving the lives of pets.  KIN has a pipeline of products for dogs and cats in development. They have multiple additional undisclosed products under development.


hard Chin, MD
Founder and Chief Executive Officer










The stock trades at a negative enterprise value (-16.43M), cash per share $4.22, BV per share 4.13 versus a market price of $3.34.

Market Cap: 66.36M , Enterprise Value : -16.43M
Total Cash (mrq):  83.59M , Total Cash Per Share (mrq):   4.22
Total Debt (mrq):    0.00
Current Ratio (mrq):  28.27 , Book Value Per Share (mrq):  4.13
52-Week Change:   -48.71%
Shares Outstanding:   19.81M , Float:  11.36M
% Held by Insiders:    15.97% ,% Held by Institutions:        60.90%
Short % of Float (as of Jan 15, 2016): 1.43%


Talented management team and founders for such a small company.
Founder and executive CEO Richard Chin is a Harvard-trained physician and a former Rhodes Scholar with a track record of a dozen drug approvals and over 50 INDs. Drugs Richard developed, including Lucentis®, Xolair®, Tysabri®, and Rituxan® for immune diseases, have current sales of well over $10 billion per year.

Prior, Mr Chin was Head of Clinical Research for the Biotherapeutics Unit at Genentech. He oversaw Genentech's drug development programs except oncology products; Senior VP of Global Development at Elan; CEO of Oxigene, a NASDAQ-listed biotechnology company; and CEO of OneWorld Health, a Gates Foundation-funded nonprofit developing drugs for impoverished patients in developing countries.  BusinessWeek named Mr Chin in 2006 as one of 99 youngest public company CEOs in the United States. He authored several major textbooks on clinical development and teaches drug development at UCSF.


Stephen Sundlof, DVM, PhD is the  Chief Scientific Officer and Executive Vice President of Regulatory Affairs and Quality.
Mr  Sundlof served as the Director of the Center for Veterinary Medicine at the FDA from 1994 to 2008. He oversaw  veterinary products regulated by the FDA. Further, He served as the Director of Center for Food Safety and Applied Nutrition at the FDA from 2008 to 2010. Steve began his career in 1980 on the faculty of the University of Florida's College of Veterinary Medicine. In 1994, FDA Commissioner David Kessler named him the CVM director.

Denise Bevers, Founder and Chief Operating Officer" is an expert in clinical operations, medical affairs, and scientific communications. Ms. Bevers has over 20 years of pharmaceutical and research experience, and has managed dozens of products and development programs from Phase I through Phase IV. She was previously at Elan Pharmaceuticals, Scripps Clinic and Research Foundation, Quintiles, and SkyePharma. Most recently, she was President and Founding Partner of SD Scientific, a full-service medical affairs and communications company". Source Corporate Website

Strong board of directors,
Ernest Mario, PhD served as the CEO of Glaxo (world's second largest drug company) from 1989 to 1993. Chairman and CEO of ALZA Corporation acquired by Johnson & Johnson for $10.5 Billion in 2001. Chairman and CEO of Reliant Pharmaceuticals, which was acquired by  GlaxoSmithKline. Ervin Veszprémi served as the Vice President and Global Head of Marketing at Novartis Animal Health, one of the largest veterinary companies in the world. 30 years of experience in the pharmaceutical industry, including 15 in the animal health sector. Raymond Townsend formerly the Worldwide Director and Vice President, Outcomes, Epidemiology and Policy Research at Glaxo. He also served as Senior Vice President, Pharmacoeconomic and Epidemiology Outcomes Research, at Elan Pharmaceuticals.


Value institution purchasing shares at higher prices;  BAUPOST GROUP (Seth Klarman) holds 15.21% of the shares outstanding.  ARIEL INVESTMENTS (John Rogers) 8.84% of shares outstanding.




Positive insider activity 2015 and prior years.













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Institutional Value Firms with Recent and Historical Activity:  Taken from Gurufocus.com
































Institutional Value Firms with Recent and Historical Activity:  Taken from Gurufocus.com


































Kindred Biosciences, Inc. (KIN) is speculative. But it's trading below net cash value with a talented proven management team and board. Coupled with positive insider activity and proven value institutional ownership purchasing at higher than current market price.

1 comment:

bart said...

Before I started reading this blog ;)