The Zacks Analyst Blog Highlights: Corcept Therapeutics, Epizyme, Geron and Synthetic Biologics
For Immediate Release
Chicago, IL – March 29, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Corcept Therapeutics Incorporated (CORT), Epizyme, Inc. (EPZM), Geron Corporation (GERN) and Synthetic Biologics Inc. (SYN) .
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Here are highlights from Monday’s Analyst Blog:
4 Stocks Brokers Love in Healthcare
The healthcare sector has been in the news over the past few quarters mostly for the wrong reasons namely the drug pricing controversy, a changing competitive scenario and mixed earnings reports. China, oil prices and global terrorism are also playing a role in the overall performance of the sector.
Specifically, biotech and pharma stocks have been hit hard by the increasing political and media focus on high price tags for new drugs. While there have always been concerns regarding the pricing and affordability of prescription drugs, the issue is back in focus following a 5000% price hike implemented by Turing Pharmaceuticals for Daraprim (pyrimethamine) that was approved by the FDA way back in 1953. Turing had acquired rights to Daraprim from Impax Laboratories and reportedly hiked its price from $13.50 to $750 per tablet.
Another company that continues to be affected by the drug pricing controversy is Valeant Pharmaceuticals thanks to its strategy of acquiring companies and selling their drugs at higher prices.
Meanwhile, major companies are facing the prospect of biosimilar competition in the U.S. for many of their key drugs. While Amgen is already facing biosimilar competition for Neupogen in the U.S., other legacy products like Epogen could start facing biosimilar competition from late 2016.
However, it’s not all bad news for the sector with fundamentals remaining strong. Many companies continue to deliver on their pipeline while key products continue to perform well. With valuations approaching reasonable levels, we could see several merger and acquisition (M&As) agreements being announced as the year progresses. Quite a few of the major healthcare companies are rumored to be on the look-out for suitable deals.
Moreover, several companies are working on bringing innovative new treatments to market and there could be significant catalysts this year in the form of important new product approvals as well as major data read-outs. Sales of products that gained approval last year as well as line extensions should ramp up this year and boost growth.
Four Healthcare Stocks Brokers Love
In such a scenario, let’s take a look at 4 healthcare stocks that are a favorite among brokers. We have zeroed-in on these stocks with the help of the Zacks Stock Screener. In addition to being broker favorites, these are all Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) stocks and have seen a price increase of at least 10% over the last 4 weeks.
First on the list is Menlo Park, CA-based Corcept Therapeutics Incorporated ( CORT), a Zacks Rank #1 stock focused on the discovery, development and commercialization of drugs that treat severe metabolic, oncologic and psychiatric disorders by modulating the effects of cortisol.
Corcept already has a marketed product, Korlym, in its portfolio. Korlym grew 89.4% in 2015 and should continue performing well this year as Corcept works on adding new prescribers and new patients. Korlym has a lot of room for growth as most of the patients who could benefit from the drug are yet to use it. This year should also see the company advancing with the development of its next-generation cortisol modulators and its oncology pipeline. Brokers with a positive opinion about this pharmaceutical company are encouraged by its GR-inhibition platform for oncology as well as Korlym’s performance. Corcept’s share price has increased 10.6% over the last 4 weeks.
Next on the list is Cambridge, MA-based Epizyme, Inc. (EPZM) is a clinical stage biopharmaceutical company focused on the discovery, development and commercialization of novel epigenetic therapies for cancer patients. Epizyme’s lead pipeline candidate, tazemetostat, is being developed for the treatment of non-Hodgkin lymphoma (NHL) and certain genetically-defined solid tumors. Epizyme’s partnerships with Celgene, Glaxo and Eisai are viewed positively. This Zacks Rank #2 stock has a seen a 16.4% increase in its share price over the last 4 weeks -- brokers believe that tazemetostat data, due in mid-2016, will act as a near-term catalyst.
Another Zacks Rank #2 stock on which brokers have a bullish view is Menlo Park, CA-based Geron Corporation ( GERN). This biopharmaceutical company is working on the development of a telomerase inhibitor, imetelstat, in hematologic myeloid malignancies, in collaboration with Janssen Biotech, Inc., a Johnson & Johnson company.
Imetelstat is currently in a couple of phase II studies with internal reviews expected in the second half of the year. Geron is also working on expanding its pipeline – the company is seeking to add new oncology candidates, programs or companies to its portfolio with its focus primarily on the hematology-oncology space. According to brokers, imetelstat has the potential to be a differentiated and effective hematology/oncology agent. Geron’s share price is up 13.5% over the last 4 weeks.
Rounding up the list is Rockville, MD-based Synthetic Biologics Inc. ( SYN), a clinical stage company developing therapeutics to protect the gut microbiome while targeting pathogen-specific diseases. Brokers are optimistic about SYN-010 and SYN-004 - a couple of candidates in the company’s pipeline. This Zacks Rank #2 stock has a seen a 29.2% increase in its share price over the last 4 weeks.
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CORCEPT THERAPT (CORT): Free Stock Analysis Report
EPIZYME INC (EPZM): Free Stock Analysis Report
GERON CORP (GERN): Free Stock Analysis Report
SYNTHETIC BIOLG (SYN): Free Stock Analysis Report
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