Home » Bear Case Scenario » Versartis IPO Bear Case Scenario $VSAR

Versartis IPO Bear Case Scenario $VSAR

Versartis launches their IPO March 21, 2014. Ponder this Bear Case Scenario.

By their own words “…global annual sales from currently marketed rhGH products have grown approximately 6% per year over the last five years, reaching over $3 billion in 2012. Based on market research, we believe that the market for daily rhGH products is likely to grow to over $4 billion by 2018.”

While no one as yet is disputing the clinical value of the products 6% annual growth rate is not what the IPO risk profile calls for. This may be a slow plodding product range that they are off-loading on an IPO crazed market.

George Gutowski writes from a caveat emptor perspective.