A: Thanks for the question.

Sirtex (SRX) had a big run up in 2015 and it looks like the market is starting to question whether they can achieve dose sales increases of 20% pa, plus also the challenges with clinical trials.

Broker Morgans recently wrote this (precis):

Morgans observes investors are starting to question the sustainability of 20% underlying volume growth. The broker does not believe that SIRFLOX results will boost sales. There are also headwinds from the US reimbursement environment. Morgans remains pessimistic about the slowing dose sales growth per treatment site and continues to believe portfolios should exit positions to limit downside risk. Reduce rating retained. Target is $17.60.
According to FN Arena, the broker consensus target price is $35.67 – with a range of $17.60 to $46.90. This is a huge range – which shows the divergent views on this stock. Sirtex is one of the more volatile health care stocks, and I would caution having a position in this stock unless you really understand the business well.

Regards

Peter