S&P 500   4,471.37
DOW   35,294.76
QQQ   368.94
S&P 500   4,471.37
DOW   35,294.76
QQQ   368.94
S&P 500   4,471.37
DOW   35,294.76
QQQ   368.94
S&P 500   4,471.37
DOW   35,294.76
QQQ   368.94

7 Great Biotech Stocks That Don’t Depend on a Coronavirus Cure

Posted on Monday, June 15th, 2020 by MarketBeat Staff
7 Great Biotech Stocks That Don’t Depend on a Coronavirus CureBiotech stocks are some of the most volatile for investors to include in their portfolio. And that volatility can be hard to predict. Biotech companies don’t have a firm correlation with the overall economy. And what can add to the challenge is that many of these companies are small-cap companies that are not well-known names.

These small biotech stocks may shoot higher based on a vaccine or drug candidate that gets national attention. But these small-cap stock also reflect the adage of letting the buyer beware. The stark reality for many investors is that the vast majority of these treatments never make it past clinical trials, and that means that a stock that goes up rapidly can move down just as fast. We’re seeing that right now with the multitude of companies competing in the race towards a vaccine and/or treatment for Covid-19 and the novel coronavirus that causes the disease. And if you’ve been good at timing the market, you could have made some good money on some of these candidates.

Of course, if you held the stock too long, you could have lost your shirt as well.

That doesn’t mean. However, that buy and hold investors should avoid the biotech sector altogether. There are still some attractively priced small-cap biotech companies working on treatments for a range of conditions that provide them with a large addressable base. And we’ve identified seven of these stocks in this special presentation.

#1 - ImmunoGen (NASDAQ:IMGN)

ImmunoGen logo

ImmunoGen (NASDAQ:IMGN) has effectively managed its balance sheet despite not yet having brought a product to market. The company has done this by leveraging its technology in a variety of partnerships with a broad range of biopharmaceutical companies, including Jazz Pharmaceuticals (NASDAQ:JAZZ), Amgen (NASDAQ:AMGN), Sanofi (NASDAQ:SNY), and Bayer (OTCMKTS:BAYRY).

More than likely, IMGN stock is trading flat for the year because investors are focusing on biotechs with direct exposure to the novel coronavirus's treatment. However, you can see the company has gained over 130% in the last 12 months when you back out a little bit. That’s a gain that investors won’t ignore once they start looking.

And ImmunoGen does have its own pipeline of attractive candidates. The company is specifically working on developing antibody-drug conjugate (ABC) therapeutics as a form of cancer treatment.  ImmunoGen has two candidates in Phase 3 trials and another two candidates in Phase 2 trials.

About ImmunoGen
ImmunoGen, Inc engages in the discovery and development of antibody-drug conjugates to improve outcomes for cancer patients. Its pipeline includes Mirvetuximab Soravtansine, IMGN632, IMGC936, and IMGN151. The company was founded on March 27, 1981 and is headquartered in Waltham, MA.

Current Price: $5.79
Consensus Rating: Buy
Ratings Breakdown: 3 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $9.13 (57.6% Upside)


#2 - Kadmon Holdings (NASDAQ:KDMN)

Kadmon logo

Our second small-cap biotech, Kadmon Holdings (NYSE:KDMN), is also flat in 2020. And like IMGN, it’s likely because investors have their attention diverted. However, also like IMGN, Kadmon stock is up over 140% for the year.

Kadmon is a relatively young stock, having only traded since 2016. The company focuses on drugs to treat immune disorders, fibrotic diseases, and immune-oncology. A catalyst for the stock is its in-market drug Clovique that is generating some revenue for the company. However, the company is still not profitable. For that, it will need to bring other drugs through clinical trials and to market. The company has reported favorable preliminary results in a pivotal trial stage for its KD025.

One of the cautions about small-cap biotech stocks is the possibility of an acquisition. There are whispers that Kadmon may attract attention because of its potential pipeline. But even if that’s the case, investors should only consider buying the stock on its own merits. And KDMN stock looks strong in that capacity. It has a 12-month price target of $12, which would reward investors who jump on the company’s stock at its current price of $4.50.

About Kadmon
Kadmon Holdings, Inc is a biopharmaceutical company, which engages in discovering, developing, and commercializing small molecules and biologics to address unmet medical need. The company's clinical pipeline includes treatments for immune and fibrotic diseases as well as immuno-oncology therapies. The firms late-stage product candidate KD025, which is an orally administered selective inhibitor of Rho-associated coiled-coil kinase engages in development for the treatment of inflammatory and fibrotic diseases.Read More 

Current Price: $8.73
Consensus Rating: Hold
Ratings Breakdown: 2 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $11.25 (28.9% Upside)


#3 - G1 Therapeutics (NASDAQ:GTHX)

G1 Therapeutics logo

One of the most investable fields in the biotech sector involves cancer research. And that’s the segue to introduce G1 Therapeutics (NASDAQ:GTHX). Analysts are encouraged by the possibility for its lead drug candidate, trilaciclib. In fact, they’ve given GTHX stock a $61.50 price target over the next 12 months. This would be a gain of nearly 200% from current levels. GTHX stock is down nearly 25% in the year-to-date.

Trilaciclib is designed to improve the outcomes for patients that have received chemotherapy. The company began implementing a new drug application (NDA) in the fourth quarter of 2019. On its most recent earnings call, company executives emphasized that the company was on track to complete that process in the second quarter. The company also said the FDA was doing a great job of balancing existing applications with the demand for fast-track approval of potential Covid-19 treatments and/or vaccines.

Approval of trilaciclib would be a key in buying time for the company to get some of its other early-stage candidates through the pipeline. This is particularly important because, as many of these small biotech companies, G1 Therapeutics is not yet profitable. 

About G1 Therapeutics
G1 Therapeutics, Inc engages in the development of small molecule therapeutics for the treatment of patients with cancer. Its products pipeline includes trilaciclib, rintodestrant, and lerociclib. The company was founded by Kwok-Kin Wong and Norman E. Sharpless on May 19, 2008 and is headquartered in Research Triangle Park, NC.

Current Price: $12.77
Consensus Rating: Buy
Ratings Breakdown: 4 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $40.60 (217.9% Upside)


#4 - Dynavax (NASDAQ:DVAX)

Dynavax Technologies logo

The next small-cap stock on our list is Dynavax (NASDAQ:DVAX). Unlike the other companies on this list, Dynavax does have indirect exposure to a Covid-19 vaccine. The company’s CpG1018 adjuvant is being used by several other drugmakers who have vaccine candidates.

On the one hand, this could be a tremendous boost for the stock, which is already up 10% for the year. Essentially, Dynavax is getting several bites at the apple. One of its most encouraging opportunities is stemming from its partnership with Sinovac. DVAX stock got a lift on news that Sinovac’s vaccine candidate was showing early promise. But remember, we’ve seen this movie so far this year with companies such as Novavax (NASDAQ:NVAX), Gilead Sciences (NASDAQ:GILD), and Moderna (NASDAQ:MRNA).

So it’s important to evaluate Dynavax on the strength of its existing portfolio. And unlike some small-cap firms, Dynavax does have an approved hepatitis B vaccine on the market. Sales of its Heplisav-B missed analysts’ revenue expectations of $11.3 million in the first quarter. However, the miss could easily be chalked up to declining demand due to the pandemic.

About Dynavax Technologies
Dynavax Technologies Corp. operates as a biopharmaceutical company, which engages in the discovery, development, and commercialization of novel vaccines and immuno-oncology therapeutics. Its product includes HEPLISAV-B, which prevents infection caused by all known subtypes of hepatitis B virus in adults 18 years of age and older.Read More 

Current Price: $16.94
Consensus Rating: Buy
Ratings Breakdown: 2 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $21.00 (24.0% Upside)


#5 - Alexion Pharmaceuticals (NASDAQ:ALXN)

Alexion Pharmaceuticals logo

With a market cap of over $25 billion, Alexion Pharmaceuticals (NASDAQ:ALXN) is the first large-cap company to make this list. Alexion is involved in the treatment of rare conditions. That’s why many of the drugs that they have on the market fly under the radar of many Americans.

Alexion is a polarizing stock. Overall, it has a price target that suggests the stock has a strong upside from its current level. And the company recently received support for that assessment by resolving a patent dispute that will keep its lead drug patent protected through 2025. The company has several drugs on the market and more in its pipeline.

Some investors are not as keen on the company’s debt level caused by acquisition on the downside. Like all biotech stocks, ALXN stock does not come without risk. However, in this case, it’s a risk supported by-products that deliver actual revenue. In fact, the company posted record revenue in its most recent quarter.

About Alexion Pharmaceuticals
Alexion Pharmaceuticals, Inc develops and commercializes various therapeutic products. The company offers ULTOMIRIS for the treatment of paroxysmal nocturnal hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS); and SOLIRIS for the treatment of PNH, aHUS, generalized myasthenia gravis (gMG), and neuromyelitis optica spectrum disorder (NMOSD).Read More 

Current Price: $182.50
Consensus Rating: Hold
Ratings Breakdown: 3 Buy Ratings, 12 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $161.93 (11.3% Downside)


#6 - Sarepta Therapeutics (NASDAQ:SRPT)

Sarepta Therapeutics logo

Sarepta Therapeutics (NASDAQ:SRPT) is a good example of how fast biotech stocks can move. On June 8, SRPT stock climbed over 8% on positive news regarding its experimental gene therapy for a rare muscular dystrophy type. Early results from the early-stage clinical trial showed that patients receiving a higher dose manifested greater benefits than those receiving a lower dose.

Sarepta is a leader in the area of gene therapy. The company has made a name for itself based on its novel approach for treating Duchenne muscular dystrophy (DMD). This latest treatment is being developed to treat a rare condition with a much smaller addressable market than those with DMD. However, the results are further validation of the company’s overall gene therapy platform.

The aforementioned drug candidate, SRP-9003, is one of more than 20 drug candidates Sarepta has in its pipeline. The company has completed enrollment for a Phase 3 functional study for an additional candidate SRP-9001. According to Kiplinger, the Swiss multinational Roche Holdings (OTCMKTS:RHHBY)  has purchased rights for the drug, which could bring Sarepta over $2.85 billion in revenues.

About Sarepta Therapeutics
Sarepta Therapeutics, Inc is a commercial-stage biopharmaceutical company, which is engaged in the discovery and development of therapeutics for the treatment of rare diseases. The company was founded on July 22, 1980 and is headquartered in Cambridge, MA.

Current Price: $84.19
Consensus Rating: Buy
Ratings Breakdown: 11 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $131.88 (56.6% Upside)


#7 - Vertex Pharmaceuticals (NASDAQ:VRTX)

Vertex Pharmaceuticals logo

Last but certainly not least, we will take a look at Vertex Pharmaceuticals (NASDAQ:VRTX). Vertex is the industry leader in the treatment of cystic fibrosis. It has four drug treatments currently on the market. It’s most recent addition is Trikafta. In the first quarter, sales of Trikafta were largely responsible for boosting the company’s revenue up to a record high of $1.52 billion. What makes Trikafta so appealing is that, unlike some of the company’s other drug candidates, it can treat 90% of patients with cystic fibrosis. That’s a huge addressable market and one that gives Vertex a near-monopoly.

Biotech companies are frequently measured on what’s next in Vertex's case that appears to be gene editing. To that end, Vertex recently acquired Exonics Therapeutics and is leveraging that in a partnership with Crispr Therapeutics (NASDAQ:CRSP)

About Vertex Pharmaceuticals
Vertex Pharmaceuticals, Inc is a global biotechnology company. It engages in the business of discovering, developing, manufacturing and commercializing small molecule drugs for patients with serious diseases. The firm focuses on development and commercializing therapies for the treatment of cystic fibrosis, infectious diseases including viral infections such as influenza and bacterial infections, autoimmune diseases such as rheumatoid arthritis, cancer, inflammatory bowel disease and neurological disorders including pain and multiple sclerosis.Read More 

Current Price: $181.77
Consensus Rating: Buy
Ratings Breakdown: 16 Buy Ratings, 4 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $266.61 (46.7% Upside)

 

In the introduction to this presentation, we pointed out some of the inherent risks in biotech stocks. One of the risks that we left off was the balance sheet risk. Companies will flood their balance sheet with debt to invest in drug treatments or vaccines in many cases. And when these products don’t make it through clinical trials, it can financially hamstring these companies for years to come.

And speaking of time, that’s another consideration for many investors. The risk-reward dynamic for investors is magnified because clinical trials take time. As much as vaccine candidates are “fast-tracked,” it will – and should – take time to bring a safe, effective vaccine to market.

That’s another important point to remember about the stocks in this presentation. They are all showing sound management of their balance sheets. This means that there is less risk for investors, even if it may be several years before these companies bring a product to market.

7 Fintech Stocks That Will Continue To Disrupt Traditional Banking

In April 2021, JPMorgan Chase CEO Jamie Dimon described fintech companies as one of the “enormous competitive threats” to traditional banking. And with good reason. Fintech (short for financial technology) is not just “digital banking.” It’s a different approach to banking that traditional banks will not be able to replicate by outspending their competitors.

You see, cryptocurrency is getting a lot of attention for the way it’s disrupting the monetary system. But before there was bitcoin (CCC: BTC-USD), there was fintech.

What started out as a way to send money from one person to another without the need for a bank (i.e. peer-to-peer lending) has morphed into much more. Today, individuals and businesses can get loans, invest, and pay bills conveniently and securely. And they can do so without ever having to set foot into a bank.

Financial technology is democratizing finance for many individuals who have been left behind by the traditional banking system. The “unbanked” is a huge target audience. But whereas fintech started as reaching those that were unbanked out of necessity; it is cultivating a new audience among those who are going unbanked by choice.

In this special presentation, we’ll look at seven fintech companies that are leading in this space today and will do so well into the future.

View the "7 Fintech Stocks That Will Continue To Disrupt Traditional Banking" Here.





Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.