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The 3 Best Developmental Stage Biotech Stocks Surging Now

Maher Syed

Every week, there are small, under-the-radar companies that see their share prices surge immensely.  Not all of these companies are worth being bullish on, but the Zacks Rank helps to find companies that might be worth taking a chance on.  Remember, successful companies surpass earnings expectations, and our ranking system does a great job of finding potential winners that can do this.  

Here are three such stocks seeing significant share price appreciation within the last week.  These companies have a Zacks Rank #2 (Buy) or better.  Each of these stocks has seen their earnings estimates revised upwards by analysts in the last 60 days.  In that same time frame, these companies have not received a single negative estimate revision from financial analysts for this quarter.

Developmental stage biotechnology stocks make for an intriguing investment choice, especially when their drug candidates see positive trial results.  Below, we outline three of the best small-cap biotech stocks worth taking a bet on right now.

Vitae Pharmaceuticals, Inc-VTAE

Vitae Pharmaceutical focuses on developing small molecule drugs in order to treat diseases.  The company is developing drugs to combat multiple ailments such as diabetes, Alzheimer’s, autoimmune disorders, atopic dermatitis, and acute coronary syndrome.  Over the last five trading sessions, VTAE has seen its shares rise by 24.11%.  Today alone, shares are up 5.49%. 

Vitae Pharmaceuticals is a Zacks Rank #2 (Buy).  In the last 60 days, six analysts revised their earnings estimates upwards for this quarter.  Our EPS consensus has moved upwards in the last 90 days.  3 months ago, our EPS consensus estimated earnings of $-0.57 per share.  Now, our earnings consensus is higher, and it estimates EPS of $-0.40 per share for this quarter.  VTAE beat our EPS consensus estimate last quarter by 12%.

Since March 16, the company’s shares have gained 129%.  The stock price rally stemmed from the fact that a clinical trial of the company’s VTP-43742 resulted in positive reactions from patients afflicted with psoriasis. 

CEO Jeff Hatfield said that “VTP-43742 has the potential to expand utilization of oral therapy in a variety of autoimmune disorders, such as psoriasis, psoriatic arthritis, rheumatoid arthritis, multiple sclerosis and inflammatory bowel disease with an effective, safe and well tolerated, once-a-day agent”.  If VTP-43742 can treat multiple diseases orally, the company could reap massive profits over time.

GlycoMimetics Inc-GLYC

GlycoMimetics is a biotechnology company that engages in developing drugs to treat diseases where carbohydrate biology plays a key role.  GLYC is a Zacks Rank #2 (Buy).  Since the 10th of May, shares have gained 30.95% in value.  Over the last week, shares have appreciated by 26.92%.  The surge stems from news that GlycoMimetics’ drug candidate, GMI-1271, inhibits breast cancer metastasis.  The drug candidate was also found to have a possible new application towards treating solid tumors.  GLYC’s GMI-1359 was also found to have possible uses for the treatment of certain cancers.     

Over the last month, our quarterly EPS consensus has been revised upwards, going from -$0.49 to -$-0.47.  The consensus has been boosted by the fact that two analysts revised their quarterly EPS expectations upwards.  GLYC has beaten our EPS consensus estimate in three of the last four quarters.

Dimension Therapeutics Inc-DMTX

Dimension Therapeutics is a biotechnology company that is focused on developing novel, liver-directed gene therapy treatments for severe genetic disorders.  DMTX shares are a Zacks Rank #2 (Buy), and shares have gained 20.54% in share value over the last week.  The surge is stemming from a major earnings beat by the company posted on the 12th of May.  Since then, shares have picked up a whopping 34.12% in value.

The company feels optimistic about results for its ongoing clinical trial regarding the treatment of hemophilia B.  DMTX is also making aggressive moves within its inherited metabolic disease programs.  The company posted EPS of -$0.38 for the quarter.  This represents a 74.5% beat on our EPS consensus estimate of -$1.49. 

The Zacks Rank is a truly marvelous trading tool.  Our ranking system has beaten the S&P 500, yielding an average return of 25% per year for the last 29 years!  Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

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GLYCOMIMETICS (GLYC): Free Stock Analysis Report
VITAE PHARM INC (VTAE): Free Stock Analysis Report
DIMENSION THERP (DMTX): Free Stock Analysis Report
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