The company struggled to IPO but got public in late 2010 with a majorvaluation haircut (fraction of cash invested) as the only way to feed a very high burn rate supporting its formulation improvement for a generic migraine drug.
Wu, who has a Buy rating on the stock, says he attempted to value the business with a sum-of-the-parts approach, looking at the value of each major part of the business based on the valuation of comparable companies in the public market.