The pharmaceutical market is experiencing hot weeks. Shares in a lesser-known company have climbed to an all-time high after its key drug showed significant improvements in clinical trials for patients with serious lung disease. Rapid revenue growth, high margins and near-zero debt beg the question: are we facing a new leader in the biotech sector, or is this just a short-term shot of euphoria?

Top points of the analysis

• Shares shot to an all-time high following the release of results from a pivotal study that showed significant improvement in lung function in patients with idiopathic pulmonary fibrosis.
• The company's revenues are growing at a double-digit pace and operating margins are well above 30%, which is rather exceptional in the biotech sector.
• The financial position is exceptionally strong - virtually zero debt and robust cash flow give room for further expansion.
• In addition to lung disease, Pipeline also offers projects in xenotransplantation and 3D printing of organs, opening up…