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The Zacks Analyst Blog Highlights: Pfizer, Pharmacyclics, Geron, Anthera Pharmaceuticals and Cytori Therapeutics - Press Releases

Zacks Equity Research

For Immediate Release

 

Chicago, IL – April 16, 2015 – 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 the Pfizer (PFE-Free Report), Pharmacyclics (PCYC-Free Report), Geron Corp. (GERN-Free Report), Anthera Pharmaceuticals, Inc. (ANTH-Free Report) and Cytori Therapeutics, Inc. (CYTX-Free Report).

                    

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Here are highlights from Wednesday’s Analyst Blog:    

                

These Inexpensive Biotechs Have Plenty of Room to Grow


The biotech sector is witnessing changing dynamics with the focus shifting from large caps to smaller companies with high growth potential. Several big biotech players are being weighed down by pricing pressure and are feeling the threat of biosimilars.


Attracted by its lucrative biosimilars portfolio and pipeline, which is potentially worth multi-billion dollars, Pfizer (PFE-Free Report) has entered into an agreement to acquire Hospira in a deal valued at approximately $17 billion.


According to Pfizer, the worldwide biosimilars market is expected to be worth approximately $20 billion by 2020. Introduction of biosimilars is expected to directly affect the market for branded biotech drugs and eat into their share.


In such a scenario, biotech companies with newer therapies or interesting pipeline candidates have been attracting a lot of attention. Big players are resorting to merger and acquisition (M&A) deals and licensing activity to bolster their beleaguered pipelines. Last month, AbbVie entered into an agreement to acquire Pharmacyclics (PCYC-Free Report) in a deal valued at approximately $21 billion to gain partial rights to Imbruvica. Imbruvica is expected to generate U.S. net product revenues of approximately $1 billion in 2015.


While the M&A frenzy shows no signs of slowing down, it is a great time to go beyond familiar names in the biotech sector and indulge in some cheap growth stocks. These pint-sized stocks are not only easy for the pockets but also ensure outsized returns in a trending market.


How to Pick?


Picking the correct growth stocks from so many options could be a daunting task. However, with the assistance of our new style score system, one can locate stocks that have a solid growth potential.


Our Growth Style Score condenses all the essential metrics from the company’s financial statements to get a true sense of the quality and sustainability of its growth. Our research shows that stocks with Growth Style Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 (Strong Buy) or #2 (Buy) offer the best investment opportunities in the growth investing space.


For finding the best growth picks, we first short listed biotech stocks that have a Zacks Rank #1 or #2 and carry a Growth Style Score of ‘A’ or ‘B.’ Finally, we zeroed in on three stocks that are priced less than $10. These stocks have bright prospects and their attractive price serves as a perfect opportunity for investors to jump in and ride the growth curve.


Geron Corp. (GERN-Free Report)

Geron is a clinical stage biopharmaceutical company focused on the development of its sole pipeline candidate, imetelstat, a telomerase inhibitor, for hematologic myeloid malignancies. Late last year, the company entered into an exclusive collaboration and license agreement with Janssen Biotech, Inc., a unit of Johnson & Johnson, for the development and commercialization of imetelstat.


This Menlo Park, CA-based company carries a Zacks Rank #2. The company has seen its current year estimate narrowing to a loss of 1 cent over the last 60 days. Geron currently has a Growth Style Score of A.


Anthera Pharmaceuticals, Inc. (ANTH-Free Report)


The Hayward, CA-based company is focused on developing and commercializing drugs for serious and life-threatening diseases including systemic lupus erythematosus and exocrine pancreatic insufficiency due to cystic fibrosis. The company’s pipeline boasts of two late-stage candidates – Sollpura and blisibimod.


Adding to the positives, this Zacks Rank #2 stock has witnessed a narrowing of loss estimate to $1.17 from $1.37 for its current year over the last 30 days. Anthera also has a Growth Style Score of A.


Cytori Therapeutics, Inc. (CYTX-Free Report)


San Diego, CA-based Cytori is a biotech company with no approved product in its portfolio. However, the company has collaboration agreements with several big companies including Amgen.


This Zacks Rank #1 stock has a Growth Style Score of B. The stock has witnessed a favorable revision in estimates for the current year over the last two months.


Conclusion


Despite challenges like increasing competition, pricing pressure and the launch of biosimilars, we believe that key industry fundamentals are intact. Newer therapies should aid growth. In this case, scouting beyond the well-known names with the help of Zacks' style score system can help one find the best stocks for their portfolio and earn impressive returns.

 

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PFIZER INC (PFE): Free Stock Analysis Report
 
PHARMACYCLICS (PCYC): Free Stock Analysis Report
 
GERON CORP (GERN): Free Stock Analysis Report
 
ANTHERA PHARMA (ANTH): Free Stock Analysis Report
 
CYTORI THERAPEU (CYTX): Free Stock Analysis Report
 
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