|Bid||6.80 x 800|
|Ask||7.46 x 800|
|Day's Range||6.79 - 7.70|
|52 Week Range||3.24 - 9.25|
|Beta (5Y Monthly)||2.13|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 06, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||18.17|
Blink, and you might just miss it. We are referring to the colossal gains that can be achieved by a select group of stocks in almost no time at all, namely those inhabiting the healthcare sector. But how is it that these types of investments can reach such heights overnight? The answer, as it turns out, is related to the nature of the industry itself.Unlike other names, these companies count on only a few vital indicators like the release of data or FDA rulings. As a result, a single update can act as a catalyst, with the power to rapidly catapult shares in either direction. This volatility and the risk that come with it can be enough to ward off some investors. For others, these stocks represent some of the most captivating growth plays the Street has to offer.Based on this, seasoned Street veterans argue that the right time to snap up shares of a healthcare name might just be ahead of key catalysts. However, once a potential portfolio addition has been identified, it isn’t always easy to determine if it’s the most compelling investment. That’s where TipRanks comes in.Taking advantage of TipRanks' Stock Screener tool, we were able to find out what Wall Street analysts are saying about 3 healthcare stocks as they approach important catalysts in the first quarter. Not only is the analyst community bullish, with each earning a Strong Buy consensus rating, but the stocks also boast substantial upside potential from current levels. Let’s jump right in.Karyopharm Therapeutics (KPTI)Karyopharm Therapeutics’ primary goal is to develop treatments that will help patients in their battles against cancer. Thanks to its innovative oral Selective Inhibitor of Nuclear Export (SINE) technology, its products could potentially inhibit Exportin 1 (XPO1), a protein that decreases the body’s ability to defend against tumors.With Phase 3 BOSTON study data for its Selinexor (Xpovio) drug scheduled for release this quarter, Wall Street’s focus has shifted towards KPTI. The therapy, which has already been approved for relapsed or refractory multiple myeloma (RRMM) treatment in patients that have received at least four previous therapies, is being evaluated for use in earlier lines of treatment. Specifically, the BOSTON study will provide data on its ability to treat patients with multiple myeloma who have already received one to three lines of therapy.J.P. Morgan analyst Eric Joseph tells clients that he expects a favorable outcome based on its SVd performance in the Phase 1b/2 STOMP study and the control Vd regimen’s previous performance. On top of this, the four-star analyst noted that the FDA’s statements about Xpovio’s accelerated approval in July as well as physician experience with SVd support this conclusion. While he did acknowledge that the readout window does create some risk, he wrote in a note to clients that “current levels still reflect overly cautious risk assumptions for BOSTON against a base case peak sales opportunity.”In line with this bullish thesis, Joseph maintained an Overweight rating in addition to increasing the price target by $4. At the new $27 price target, shares could surge 54% in the next twelve months. (To watch Joseph’s track record, click here)In general, the rest of the Street is on the same page. 5 Buys and a single Hold add up to a Strong Buy analyst consensus. Additionally, the $25.60 average price target puts the upside potential at 46%. (See Karyopharm stock analysis on TipRanks)Kala Pharmaceuticals (KALA)Switching gears now, Kala Therapeutics is focused on treatments for eye diseases. Due to its proprietary mucus-penetrating particle (MPP) technology, the analyst community has been keeping tabs on this biopharma.After the company received a complete response letter (CRL) for the KPI-121 0.25% (EYSUVIS) NDA, its Dry Eye Disease therapy, the upcoming Phase 3 STRIDE 3 trial top-line data readout has attracted significant attention as this data will be used in its CRL response. Management stated that they have decreased the patient variability in STRIDE 3 that led to missing statistical significance for ocular pain in the STRIDE 2 Phase 3 trial. With the readout expected sometime from late February to the end of March, an NDA could be resubmitted in the first half of 2020, should the results be positive.For Wedbush’s Liana Moussatos, the large market opportunity is enough to get her on board. “We estimate that in 2027 gross annual sales for KPI-121 0.25% could reach about $1.89 billion for Dry Eye Disease. We project full year profitability in 2021 with about $173 million in revenues in 2021 (~$87 million for Dry Eye and ~$86 million for Post-Surgical Inflammation and Pain),” she commented. As KALA represents a “buying opportunity”, she reiterated her Outperform call. Most noteworthy, however, is her $51 price target, which is the highest on the Street and suggests 694% upside potential. (To watch Moussatos’ track record, click here)While not nearly as aggressive as Moussatos, Oppenheimer analyst Esther Rajavelu is still very much in favor of KALA. “We maintain our Outperform rating as we believe Eysuvis (if approved) may address significant unmet needs in the nascent dry eye disease market, which we estimate could be a $3B US market opportunity. We remain positively skewed on STRIDE-3 readout anticipated in 1Q20, as the changes in trial inclusion/exclusion criteria could meaningfully increase the probability of success,” she explained. Based on this assumption and the lower operating expenses, the analyst increased the price target from $9 to $12 along with her bullish call. (To watch Rajavelu’s track record, click here)Looking at the consensus breakdown, the rest of the Street also has high hopes. A Strong Buy consensus rating breaks down into 3 Buys and 1 Hold assigned in the last three months. Not to mention the $19.75 average price target implies 208% upside potential. (See Kala stock analysis on TipRanks)Kadmon Holdings (KDMN)With a proven track record of successful drug development, Kadmon Holdings wants to offer cutting-edge medicines for immune and fibrotic diseases as well as immuno-oncology therapies. As it prepares for a Pivotal trial data readout for its late-stage candidate, KD025, in chronic graft-versus-host disease (cGVHD), some think that 2020 could be a big year for KDMN.Analysts are even more excited about the company’s prospects after it was announced that INCY’s candidate itacitinib failed to meet its Phase 3 endpoint for treatment-naive acute GVHD. Cantor Fitzgerald’s Eliana Merle argues that the itacitinib setback indicates significant commercial upside for Kadmon’s candidate and supports its safety profile.“We think KD025's differentiation on safety/tolerability could be a key driver of longer duration of use (and ultimate market opportunity),” the analyst stated. On top of this, she believes that the design of KD025’s trial lends itself to a favorable outcome. Itacitnib was evaluated in the acute steroid-naive setting, which makes it more difficult to achieve a successful result, while KD025 was studied in the steroid-refractory chronic environment.Merle added, “We continue to see the cGHVD market opportunity as underappreciated for KDMN's KD025. We model $500 million in U.S. peak sales and we see INCY's update as supportive of this opportunity.”It makes sense, then, that the analyst stayed with the bulls, leaving the Overweight rating and $10 price target unchanged. Should the target be met, a 118% twelve-month gain could be in the cards. (To watch Merle’s track record, click here)What do other Wall Street pros think? As 100% of the analysts that have published a review in the last three months were bullish, the word on the Street is that KDMN is a Strong Buy. With a $13.25 average price target, the upside potential comes in at 189%. (See Kadmon stock analysis on TipRanks)
Kala Pharmaceuticals, Inc. (Kala) (NASDAQ:KALA), a biopharmaceutical company focused on the development and commercialization of therapeutics using its proprietary AMPPLIFY™ mucus-penetrating particle (MPP) Drug Delivery Technology, today announced that it has completed enrollment in its STRIDE 3 (STRIDE – Short Term Relief In Dry Eye) Phase 3 clinical trial for KPI-121 0.25%, its product candidate for the short-term treatment of dry eye disease. If approved, Kala plans to commercialize KPI-121 0.25% under the brand name EYSUVIS™. Kala is targeting to report top-line results from this trial during the first quarter of 2020 and resubmission of the EYSUVIS New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) in the first half of 2020. Kala believes this resubmission would be subject to a six-month review.
It is a pleasure to report that the Kala Pharmaceuticals, Inc. (NASDAQ:KALA) is up 53% in the last quarter. But in...
Kala Pharmaceuticals, Inc. (NASDAQ:KALA), a biopharmaceutical company focused on the development and commercialization of therapeutics using its proprietary AMPPLIFY™ mucus-penetrating particle (MPP) Drug Delivery Technology, today announced that it will present at the 38th Annual J.P. Morgan Healthcare Conference in San Francisco, CA. Mark Iwicki, Chairman, President and Chief Executive Officer of Kala Pharmaceuticals, is scheduled to present a corporate overview on Wednesday, January 15, 2020 at 11:30 a.m. PT (2:30 p.m. ET).
Hedge funds are not perfect. They have their bad picks just like everyone else. Facebook, a stock hedge funds have loved dearly, lost nearly 40% of its value at one point in 2018. Although hedge funds are not perfect, their consensus picks do deliver solid returns, however. Our data show the top 20 S&P 500 […]
Kala Pharmaceuticals, Inc. (NASDAQ:KALA), today announced that the Company granted non-statutory stock options to new employees as inducement awards outside the Company’s 2017 Equity Incentive Plan in accordance with NASDAQ Listing Rule 5635(c)(4).
For the uninitiated, biotech stocks can seem a tad intimidating. The untrained eye is confronted with masses of obscure data, clinical trial information and industry specific medical jargon. Once cracked, though, the information becomes a lot clearer and a general pattern emerges.Biotechs, in particular, have a reputation for extreme volatility, gaining and losing value almost on a whim. Tending to soar after receiving good news, and likewise crashing violently following the release of unsuccessful trial data. Therefore, the risks are abundant, but equally, so are the rewards. The key is knowing how to spot the right investment, and furthermore, when to execute it.TipRanks’ Stock Screener tool makes it a lot easier to pick out a promising stock, as it provides a collection of key metrics to identify the right choice. So, we took out our virtual scalpel, and dissected the data at hand to find three 'Strong Buy' biotech stocks that offer the highest upside potential on Wall Street. Let's take a closer look:ObsEva SA (OBSV)ObsEva is a good example of the inherent volatility in biotechs. In the last five weeks alone, ObsEva's stock experienced both the highs and, especially, the lows.In early November, the company made the surprise announcement that it will discontinue development of Nolasiban in vitro fertilization (IVF) due to its miss on primary endpoint in Phase 3 clinical trial, IMPLANT4. Investors were not pleased, sending the stock tumbling by over 60%.So that sounds bad, right? Yet, over the following month, the volatile stock managed to claw back about 60% to its share price, before sharply dropping again.Earlier this week, ObsEva announced what it called "positive" top-line PRIMROSE-2 results, the first of two phase 3 studies evaluating linzagolix with and without co-administration of add-back therapy (ABT) for the treatment of heavy menstrual bleeding due to uterine fibroids. The stock initially rallied on the news, but the gains soon faded and the stock finished the day 30% down.Wedbush analyst Liana Moussatos says that "based on the clinical and safety profile of Linzagolix to date," she anticipates "positive results for PRIMROSE 1 in Q2:20."As a result, Moussatos reiterated an Outperform rating on OBSV, while raising her price target to $36 (from $33). In other words, the analyst sees the stock rising 10-fold in just over a year. (To watch Moussatos' track record, click here)The Street is not quite as bullish as Moussatos, indicating massive gains of "only" 525% might be in place, should the average price target of $21 be reached. The volatile biotech has a Strong Buy consensus rating, represented by 4 "buy" ratings and 1 "hold." (See ObsEva stock analysis on TipRanks)Kala Pharmaceuticals (KALA)Those are pretty hefty gains, right? Let’s take a look at what our next biotech has in store.Kala develops treatments for inflammatory ocular conditions. In August, the biopharma was on the receiving end of the dreaded CRL (complete response letter) from the FDA, requesting data from an additional clinical trial for KPI-121 0.25%, the company’s dry eye disease candidate. Kala intends to respond with top-line results from the Phase 3 (STRIDE 3) trial anticipated in Q120.Wedbush’s Liana Moussatos is confident in Kala’s ability to turn things around, noting, “We project a new PDUFA to be assigned sometime in 2020, with potential U.S. approval by YE:20 and launch in early Q1:21. We estimate that in 2027 gross annual sales for KPI-121 0.25% could reach about $1.89 billion for Dry Eye Disease. We project full year profitability in 2021 with about $173 million in revenues in 2021 (~$87 million for Dry Eye and ~$86 million for Post-Surgical Inflammation and Pain).”Accordingly, Moussatos reiterated an Outperform rating on Kala, alongside a price target of $51. Kala currently trades at $4.20, indicating potential upside of an incredible 1111%. (To watch Moussatos’s track record, click here)Does the Street agree? Yes, but not quite to the same extent. Two other Buy ratings assigned over the last 3 months add up to a Strong Buy consensus rating. The average price target, though not quite as mercurial as Moussatos’s, is $24.33. By no means to be sniffed at, as this target indicates gains in the magnitude of 414% could be in place. (See KALA price targets and analyst ratings on TipRanks)Novavax (NVAX)Our final pick is another example of the sector’s extreme volatility. Novavax is a biotech engaged in the production of vaccine candidates. The company shed 70% of its value back in February, after its respiratory syncytial virus (RSV) vaccine, ResVax, failed in a pivotal trial. Since then the share price has been gathering moss and has yet to regain a foothold on the market ladder.Novavax, though, might have an ace up its sleeve in the shape of NanuFlu, a seasonal influenza vaccine candidate. NanoFlu exhibited impressive phase 2 results, and is currently in a fully enrolled 28 day phase 3 trial, with results expected in 1Q20.Ladenburg Thalmann’s Michael Higgins thinks NanoFlu’s unique design “sets up well for Novavax.” The analyst noted, “The design of NanoFlu’s pivotal sets up well for Novavax. The primary endpoints in NanoFlu’s pivotal are non-inferiority comparisons of hemagglutination inhibition (HAI) between NanoFlu vs. Sanofi’s Fluzone Quad for the four strains in the vaccine. This design is in line with the three most recent seasonal flu vaccines’ pivotals. In our view, this non-inferiority trial is de-risked when considering NanoFlu has demonstrated superiority to FluZone HD in Phase 2 and its Phase 1/2."Therefore, Higgins reiterated a Buy rating on Novavax, alongside a price target of $27.50, indicating potential upside of a blockbusting 572%. (To watch Higgins’ track record, click here)Novavax currently only has two other analysts appraising its potential, both deeming the vaccine manufacturer a Buy. The Strong Buy consensus rating comes with an average price target of $18.83, implying upside of 360%. (See Novavax stock analysis on TipRanks)
Kala Pharma (KALA) delivered earnings and revenue surprises of -1.49% and -59.20%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Kala Pharmaceuticals, Inc. , a biopharmaceutical company focused on the development and commercialization of therapeutics using its proprietary AMPPLIFY™ mucus-penetrating particle Drug Delivery Technology, today announced that it will report third quarter 2019 financial results on Thursday, November 7, 2019.
If you want to know who really controls Kala Pharmaceuticals, Inc. (NASDAQ:KALA), then you'll have to look at the...
Investors need to pay close attention to Kala Pharmaceuticals (KALA) stock based on the movements in the options market lately.
Buy low and sell high – it’s an old saw, true, but it’s still the surest way to turn a profit in the markets. The hard part, of course, is knowing just what to buy when it’s low. Not all low-cost stocks are created equal, and a savvy investor needs to know how to sort out the potential winners for his portfolio.Here, we look at three stocks have taken a beating in recent months but retain their Buy rating. The reasons vary, as do the industries and business models, but all three have three features in common: an entry cost below $15 per share, a low-end price target well above the current share price, and a huge upside potential.Let's take a closer look:Carbonite, Inc. (CARB)The cloud backup company took two hard hits at the end of last month, when it reduced full-year revenue and earnings guidance the same week that CEO Mohamad Ali announced his pending departure. Investors generally don’t like getting reams of bad news all at once, and CARB shares fell from $23.90 to $18.01. The stock has been slipping slowing ever since, and currently stands at $14.48.There was good news, however. Q2 GAAP revenues jumped to $121.5 million, a gain of 56%, and the adjusted EPS of 56 cents was 16% higher than the 47-cent expectation. Gross margins improved, too, from 77.1% in the year-ago quarter to 82.3% in Q2 2019.While the CEO has left, his place has been taken on an interim basis by Board chairman Steve Munford. In a statement on the company’s path forward, Munford said, "We remain committed to capitalizing on the opportunity of combining data protection and security, while we improve the effectiveness of our go-to-market efforts and deliver on our profitability targets." It’s a good note of continuity, which investors like.Some of Wall Street’s top analysts also like what they see in Carbonite, although they are cautious enough to lower their price targets. Northland Capital Markets’ Tim Klasell, a 5-star analyst, says, “We are reducing our top line in response [to Q2 revenue numbers], but cost synergies from the Webroot acquisition are protecting the bottom line. The CEO has left for a new opportunity, which raises the possibility of a strategic move.” With the company’s bottom line safe for now, and the way open for new ideas at the top, Klasell gives CARB a Buy rating with a $30 price target, suggesting a 107% upside from current levels. (To watch Klasell's track record, click here)John DiFucci, of Jefferies, is more cautious but still bullish. He has lowered his price target from $37 to $29, but still sees a 100% upside to the stock. He describes Carbonite as “Consistently Inconsistent,” but adds that, “the stick will work if the company can hit numbers and the post-earnings selloff brings an attractive valuation.” DiFucci is also a 5-star analyst, and rated 27 overall in the TipRanks database.Carbonite’s analyst consensus is a Moderate Buy, based on 5 buys, 2 holds, and 1 sell. The average price target of $26.75 gives an upside potential of 84% from the current share price of $14.48.Kala Pharmaceuticals, Inc. (KALA)Our next example of an undervalued stock with great potential is KALA. A small-cap pharma company, Kala Pharmaceuticals released its first drug – Inveltys, an eye drop to relieve pain and swelling after ocular surgery – to the markets early this year, and analysts expect its annual sales will peak near $300 million. Not bad, for a company with a market cap of just $136 million.So why has KALA’s share price dropped 71% in the past 12 months, from its peak at $13.87 last August to just $4 at Friday’s close?The answer may lie in the nature of biopharma investing, and the heightened expectations around the sales of new drugs. Inveltys’ slow start in the market is hardly out of the ordinary; medical research and drug development are capital intensive, and it generally takes several quarters before a new pharmaceutical begins to turn a profit. The investors are not worried about Kala’s red ink, so much as they are worried by the disparity between the $2.06 million in Q2 Inveltys revenue and the $2.69 million of the average estimate. Going forward, profit estimates grow, reaching $14 million for full-year 2019 and over $70 million for 2020. By the early indications, Inveltys will have difficulty meeting those numbers.On the other hand, prescription numbers are moving in the right direction. Kala disclosed 11,000 Inveltys scrips in Q1, and 31,000 in Q2. The June quarter ended with Inveltys holding 6.8% market share in a crowded environment. More importantly, insurance plans covering a total of 92 million people have added Inveltys to their benefits lists.Several Wall Street analysts see Kala’s growth potential outweighing its near-term risk. Speaking for the bulls, H. C. Wainwright’s Yi Chen says, “In our view, INVELTYS still has plenty of room for growth within the market of 4.8M cataract surgery procedures each year in the U.S. However, we have lowered the growth rate for INVELTYS revenue to reflect current market conditions given the entry of new competitors into the marketplace.” He may be cautious, but his price target and upside reflect the profit potential of the biopharma industry; at $12, the target suggests a 200% upside. (To watch Chen's track record, click here)Wedbush analyst Liana Moussatos agrees with Chen about KALA’s potential, and then some. Writing, “We reiterate our OUTPERFORM rating,” she sets a 12-month price target of $51, implying a whopping 1,175% upside to the shares.Despite KALA’s near-term risk, the stock holds a unanimous Strong Buy on the analyst consensus, with 3 buy ratings given in the last two weeks. Shares are selling for a low $4, but the average price target of $24 suggests an upside potential of 500%. It’s an indication of the high profits possible in the biotech industry.Superior Industries International, Inc. (SUP)Our third stock today may surprise you – it’s an industrial company, part of the supply chain for Detroit’s auto industry. The Motor City may not be what it once was, but it’s hardly down and out, and whether they go electric, alt fuel, or stick with gasoline, cars are always going to need wheels.That’s where Superior comes in. SUP is the leading manufacturer and supplier of cast aluminum wheels to the auto makers. Slowing net sales have led to declines in year-over-year income, however, and the company is facing a rough time. On the positive side, SUP showed a strong positive cash flow in Q2, and paid down $26.1 million in debt principal. CEO Majdi Abulaban said, of Q2, “In light of the persistent volume weakness, we are taking action to right size costs... As a result of these actions, we have reduced production schedules in certain facilities and realized an improvement in working capital and cash flow, which supported sizeable debt principal reductions in the second quarter… We are confident that the initiatives we are implementing, including reducing capital expenditures, will further enhance cash generation for continued debt paydown in 2019.”Watching from Wall Street, B. Riley FBR analyst Christopher Van Horn agrees that SUP has an upbeat outlook going forward. He writes, “We recognize that the company is exposed to production decreases in both North America and Europe. However, our thesis revolves around the company’s ability to manage a difficult top- line environment through better execution on the operating line. We are maintaining our Buy recommendation given that we think the company can improve their sales mix as program launches this year are likely on larger SUVs with higher priced wheels.”Van Horn gives SUB shares a $9 price target to go along with his buy rating, indicating confidence in a high 287% upside to the stock. (To watch Van Horn's track record, click here)Overall, SUP maintains a Moderate Buy from the analyst consensus, based on 2 buys assigned in the last 10 days. The stock sells for only $2.32, so the average price target, $8, suggests a potential upside of 244%.
Kala Pharma (KALA) delivered earnings and revenue surprises of 5.41% and -21.43%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?