Here's Why Assertio Holdings (ASRT) Stock is Up This Year
Assertio Holdings ASRT stock has risen 45.9% this year so far against a 20.3% decrease for the industry.
This Lake Forest, IL-based specialty pharma company, which markets neurology, inflammation and pain medications, has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Earnings estimates for 2022 have improved from 35 cents per share to 40 cents per share, while those for 2023 have risen from 5 cents to 29 cents over the past 60 days.
Here we discuss the reasons for the stock’s upbeat performance this year so far.
Assertio Holdings has undergone a major transformation. Its restructuring is now complete and the company has shifted focus on growing its business. Assertio Holdings has invested in digital capabilities, resolved several legacy legal uncertainties and set up a new commercial model. The company’s successful execution of its restructuring plan has resulted in significant cost savings, which have boosted its profits. The company raised its full-year adjusted EBITDA guidance in May, following strong first-quarter results and an optimistic outlook for the rest of the year.
In December 2021, the company acquired Otrexup (methotrexate), a drug-device combination single-dose once-weekly auto-injector, from Antares Pharma. Otrexup is a strategic fit with Assertio Holdings’ unique digital platform, which is expected to drive long-term growth. Otrexup accounted for nearly one-third of the company’s incremental product revenue growth in the first quarter of 2022.
Assertio Holdings has set some goals for the next couple of years. It is looking to bring on new products to help diversify and transform its business. It expects to add $40 million of gross profit by 2024. Otrexup represents about one-fifth of this goal. The company looks well on track to meet its goals.
Other Stocks to Consider
Other small drugmakers worth considering are Chinook Therapeutics KDNY, Viracta Therapeutics VIRX and Soleno Therapeutics SLNO, all with a Zacks Rank of 2 (Buy).
Loss estimates for Chinook Therapeutics have narrowed from $3.12 per share to $2.49 per share for 2022 and from $3.35 per share to $2.63 per share for 2023 over the past 60 days. The stock is up 14.3% this year so far.
Earnings of Chinook Therapeutics beat estimates in each of the last four quarters, the average being 42.05%.
The stock of Viracta Therapeutics has risen 3.9% this year so far. The consensus loss estimate for 2022 has narrowed from $1.44 per share to $1.24 per share, while that for 2023 has narrowed from $1.65 to $1.36 per share over the past 60 days.
Earnings of Viracta Therapeutics beat estimates in two of the last four quarters and missed on two occasions, the average surprise being 3.34%.
Soleno Therapeutics’ loss estimates for 2022 have narrowed from 30 cents per share to 28 cents per share over the past 60 days. The stock has declined 52.6% this year so far.
Earnings of Soleno Therapeutics beat estimates in two of the last four quarters, missed the mark on one occasion and delivered in-line results in one quarter, the average negative surprise being 10.92%.
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