QLT Inc.QLTI

Morningstar Rating

Stock Research and Analysis

by Brian Laegeler, CPA

QLT is a no-moat specialty pharma company that only briefly made it to the big leagues. Today, the company's two existing products, Visudyne and Eligard, have limited patent life and flat-to-declining sales. The company's only significant development Read more

Bulls Say

QLT may be an acquisition target. An outside firm could shut down QLT's research operations, eliminate the bulk of its expenses, and benefit from Visudyne's free cash flow.

While a long shot at this point, QLT is working to develop eye plugs that deliver medicine continuously to the eye. If successful in current trials, the firm's long-term prospects could improve.

QLT recently completed a major share repurchase at prices below fair value. Read more

Bears Say

A surge of new drugs for wet AMD is expected to hit the market in the next five years. QLT may have a difficult time positioning Visudyne in this highly competitive marketplace.

Visudyne is a light-activated drug, which requires the use of a laser. As the lasers' replacement cycle approaches, hospitals may avoid the added cost in lieu of newer treatment options.

Last year, Genentech's Lucentis was granted marketing approval in Europe. As a result, Visudyne's international sales fell another 41% this year, mirroring the drug's earlier fate in the U.S. Read more

Strategy

QLT develops drugs centered mainly in the field of ophthalmology. QLT focuses most of its efforts on unmet needs, as it did with Visudyne for wet AMD. The company usually sells its drugs through a third Read more

Management

Robert Butchofsky assumed the CEO title in early 2006, capping an eight-year climb through the firm's management ranks. Butchofsky previously worked for Allergan AGN in the eye-care pharmaceutical and Botox divisions. After two years of underperformance Read more

Profile

QLT is a biopharmaceutical firm that specializes in drugs for ophthalmology. Its main product, Visudyne, was the first nonsurgical treatment for wet age-related macular Read more

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