Tomahawk, WI 03/11/2014 (Basicsmedia) – Shares of Agios Pharmaceuticals Inc. (NASDAQ:AGIO) have responded well in line with the earnings report for the fourth quarter and full year 2013. The company banked a total of $25.5 million over the last year with only $6.7 in Q4 revenues. The growth in loss per share was steeper than before yet higher R&D kept the loss per share below the analysts’ estimates of $0.4 a share. Revenue growth was the one highlight which novice traders might find very attractive for this stock. However, in the RnD intensive industries like Biopharma and Biotechs the accounting returns don’t always show the real potential of the business.

BioTech Figures Could Be Deceptive

As the accounting and financial reporting conventions to record R&D expenses, are complex it is difficult to ascertain the real economic worth of a biotech stock from merely accounting data. This is why the clinical stage bio-therapeutics’ real potential lies in the efficacy of, the demand for and the FDA approval of its candidate products offering.

Product Portfolio Speaks The Real Potential Of Agios

Agios Pharmaceuticals Inc. (NASDAQ:AGIO) has developed techniques to inhibit or activate metabolic enzymes for treating in-born metabolic dysfunctions and cancers. Its Oncology candidate drug selectively targets the Isociterate-Dehydrogenase enzyme mutation (IDH1 and IDH2) in cancer cells. Biotherapeutics possess an edge over mainstream oncology treatments like chemo and radio therapies because both of these later techniques respond to grown cancers when the symptoms emerge while the former can inhibit genome of high-risk patients, thus eliminating or reducing the chance of first occurrence of cancer to an effectively lower level. An FDA approval wpuld mean breakthrough innovation commercialized for long run revenues owing to firm demand.

Financial Edge!

Having dealt with the product portfolio let’s look at Agios Pharmaceuticals Inc. (NASDAQ:AGIO)’s financial strength. It is 74% institutionally owned which makes it less fragile against many equally sized competing stocks.

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