SpringWorks Therapeutics (SWTX) short, mcap=$1.3bn, price $25.32 vs $39.19

Short pitch:
– A bet that a P3 study of the drug previously abandoned by PFE will fail.
– Result announcement is expected in Q2’22 after years of delay, which has rendered the statistical powering assumptions meaningless.

Valuation:
– The drug in the P3 study account for the majority of the SWTX valuation.
– Assuming a $500M residual value for the pipeline would yield a ~$17 price target.

Exp. gain: 50% to $17/share on the failure of P3 results.

Full SWTX write-up (free guest account required):
https://valueinvestorsclub.com/idea/SPRINGWORKS_THERAPEUTICS_INC/7743559294

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