ISIS Pharmaceuticals (NDAQ: ISIS) has the attention of analysts but is having trouble attracting a good valuation from investors. Jefferies Research reiterated their $30 price target for the pharmaceutical company, saying a number of near-term catalysts should drive share appreciation. Meanwhile, the company’s chief executive came out early this week saying that the street was grossly undervaluing the Genzyme Corporation (NDAQ: GENZ) deal they recently inked on Monday. So, do shareholders have it wrong?

There are several catalysts that could set ISIS shares soaring. Recently, the company has been exploring strategic alternatives for its Ibis Biosciences division and some believe that a partnership with a substantial upfront payment, spin-off, or sale could materialize sooner than the street expects. This could prove to be a windfall for the company’s shareholders if it went through at attractive pricing.

ISIS is also expecting to commence its Mipomersen P3 heterozygous FH (HeFH) trials shortly. Analysts believe that one of the key points with the FDA centers around finalizing the most appropriate definition of a HeFH patient. Meanwhile, physicians have reported expressed a large degree of comfort with all the mipomersen data presented so far in the process. Consequently, there are no major road-blocks seen the P3 trails in the broader FH population. Obviously, news of this could send shares much higher.

Finally, ISIS’ recent deal with Genzyme only managed to return about 16% now since the announcement despite an early pop in the share price. The deal to license ISIS’ experimental cholesterol fighter could result in more than $1.5 billion in milestone payments and a 50% share of profits from the medicine. Considering that ISIS’ market capitalization stands right around $1.5 billion alone, this could definitely prove to be a windfall if everything goes as planned.

In the end, there are many things that could jump ISIS’ share price over the short and medium terms. However, as with most pharmaceutical companies, there is no guarantee that anything happens. Often times, you just have to play the odds. If nothing else, this is an interesting stock that is definitely worth watching over the next few weeks and months!

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