DCPH - Deciphera Pharmaceuticals: The 75% Haircut Doesn't Seem Justified

• Deciphera Pharmaceuticals is the unusual case of a commercial-stage company whose drug succeeds at first but then has a major setback.
• Top-line data from a key phase 3 trial suggest that their flagship drug will not be moving from later-line to second-line therapy for GIST.
• With buoying expenses, Deciphera needs to make a splash to increase revenues quickly, or else dilution is a serious risk.
• Though risky overall, Deciphera at these levels presents a very interesting risk/benefit case.

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