In this article, let's take a look at Dermira, Inc. (DERM, Financial), a $360.4 million market cap company, which is a biopharmaceutical company focused on bringing differentiated medical dermatology products to dermatologists and their patients.
Revenues, EPS and Stock Performance
Revenue for the fourth quarter was $7.3 million and it has reported a net loss of $6.7 million. Now, considering the entire year, revenue was $7.3 million (no records for the previous fiscal year) and a net loss of $31.9 million compared to a net loss of $22.4 for 2013.
In October 2014, the firm announced the pricing of its initial public offering (IPO) of 7,812,500 shares of common stock at a price to the public of $16.00 per share. Since then, shares lost about 0.45%.
Peer Group Ratios
In the following table we can appreciate some key ratios for the company and its peers.
| Ticker | Company Name | Revenue 1Y Growth | EPS 1Y Growth | P/E |
| DERM US Equity | DERMIRA INC | N/A | - 6,43 | N/A |
| BLCM US Equity | BELLICUM PHARMACEUTICALS INC | - 8,28 | - 281,40 | N/A |
| CHRS US Equity | COHERUS BIOSCIENCES INC | 1.030,72 | 60,36 | N/A |
| FGEN US Equity | FIBROGEN INC | 54,96 | 54,55 | N/A |
| VVUS US Equity | VIVUS INC | 40,82 | 53,49 | N/A |
| ACET US Equity | ACETO CORP | 2,10 | 25,30 | 26,00 |
| PFIZ IN Equity | PFIZER LIMITED | 13,29 | - 54,23 | 46,74 |
| MNKD US Equity | MANNKIND CORP | N/A | 20,31 | N/A |
| CTIX US Equity | CELLCEUTIX CORP | N/A | - 150,00 | N/A |
| AGEN US Equity | AGENUS INC | 129,13 | 74,64 | N/A |
| ADXS US Equity | ADVAXIS INC | N/A | 76,34 | N/A |
| IMMU US Equity | IMMUNOMEDICS INC | 82,22 | - 180,00 | N/A |
| ARWR US Equity | ARROWHEAD RESEARCH CORP | - 39,71 | 3,66 | N/A |
| SGYP US Equity | SYNERGY PHARMACEUTICALS INC | N/A | - 39,73 | N/A |
| CPRX US Equity | CATALYST PHARMACEUTICAL PART | N/A | 11,11 | N/A |
| SYUT US Equity | SYNUTRA INTERNATIONAL INC | 39,42 | N/A | 7,76 |
| Â | Average | 134,47 | - 22,13 | 26,83 |
From the table, we can highlight the strong revenue growth reported by Coherus Biosciences (CHRS, Financial), as well as the extremely good EPS growth of Bellicum Pharmaceuticals (BLCM, Financial).
Turning our attention to the return on equity, in general, analysts consider ROE ratios in the 15-20% range as representing attractive levels for investment. For investors looking those levels or more, Vivus Inc (VVUS, Financial), Pfizer (PFE, Financial) and Cellceutix (CTIX, Financial), Immunomedics (IMMU, Financial) and Synergy Pharmaceuticals (SGYP, Financial) are all very good options.
Dermatologic Improvement
Tom Wiggans, chairman and chief executive officer of Dermira considered that capital position will be strengthened. Also, the fact that having added key management positions is crucial to focus on developing the pipeline of late-stage, as well as in innovative and differentiated dermatology products. He said he was delighted “with the progress we are making, particularly the positive Phase 2b results for DRM04 announced in February and the advancement of our CIMZIA program, in which all three of our Phase 3 clinical trials are underway. Looking forward, we eagerly anticipate the start of the Phase 2b trial in acne for DRM01 in April and intend to commence our Phase 3 program in hyperhidrosis for DRM04 in the second half of the year, subject to an end-of-phase 2 meeting with the FDA."
Final Comment
The Company faces competition from pharmaceutical and biotechnology companies, including specialty pharmaceutical companies, and generic drug companies, academic institutions, government agencies and research institutions.
Disclosure: As of this writing, Omar Venerio did not hold a position in any of the aforementioned stocks.
