Investing in pharmaceutical companies are always risky.   Most of these companies are not making money but if they have one drug that works well, they can easily be bought out or make all the royalties back from their research and development.  It’s better if these companies already have a partnership with one of the behemoth drug companies that can help give them money and sponsor their drugs.

The company I’m talking about is Theravance (THRX).  Seth Klarman owns a majority of this company in his portfolio.  His basis is much higher than the current price of the stock.  It has hit weakness the past couple of quarters but there has been really good guidance going forward and growth should happen in 2015 and 2016.  GlaxoSmithKline recently purchased 832,456 shares of Theravance costing them a total of $12,786,524.16.  With such a large purchase, they are really betting on their drugs and I assume they eventually would like to buy them out.

This is a risky place but if THRX does well, it could be a great benefit to the stockholders.