91.11 -0.13 (-0.14%)
After hours: 4:34PM EDT
|Bid||91.13 x 1300|
|Ask||91.24 x 800|
|Day's Range||90.82 - 91.92|
|52 Week Range||64.38 - 101.55|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.73|
|Expense Ratio (net)||0.35%|
A biotech breakout. The Apple effect. And do ETFs really cause volatility? With CNBC's Bob Pisani, Dave Nadig, ETF.com and Doug Yones, New York Stock Exchange.
Last week was an event-filled one for the biotech space, with M&A, FDA decisions, clinical trial results and earnings all on offer. Biogen Inc (NASDAQ: BIIB ) announced an $800-million deal to buy Nightstar ...
Healthcare companies were among the worst performing stocks Wednesday, with biotechnology sector-specific ETFs taking the brunt of the hit, after FDA Commissioner Scott Gottlieb unexpectedly resigned, ...
The SPDR S&P Biotech ETF (XBI), one of the largest biotech exchange traded funds, surged last week on news after Roche (RHHBY) acquired gene therapy researcher Spark Therapeutics (ONCE). Roche announced it will pay $4.8 billion to acquire Spark Therapeutics.
Biotech stocks turned lower after news reports on Tuesday afternoon that Food and Drug Administration Commissioner Scott Gottlieb was resigning. The iShares Nasdaq Biotechnology ETF was down 0.3% after being up 0.5% just before the news. The ProShares Ultra Nasdaq Biotechnology ETF fell 0.6%, while the SPDR S&P Biotech ETF fell 0.2% . Biotech and pharmaceutical executives have praised Gottlieb for accelerating the approval of generic drugs and updating the process for FDA evaluation of novel treatments such as gene therapy.
Last year was not kind to many biotech stocks. When investors abandoned high growth equities as the economy and market got rocky, biotech stocks were some of the first to go. This was especially true for many of the clinical-stage drug developers with no actually marketed products under their belts. The equal-weighted SPDR S&P Biotech (NYSEArca:XBI) -- which has a high concentration of smaller biotech stocks -- managed to lose around 24% in 2018.Investors clearly were not willing to gamble on those smaller stocks that don't have revenues.But the new year is shaping to be a bit better for biotech stocks in general and those clinical-stage developers. So far, risk has once again returned to the menu and the effects of the government shutdown on the FDA are no longer an issue. Investors have once again taken a shine to early-stage drug developers. The XBI is up more than 16% year-to-date.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnd more gains could be in store for the clinical biotech stocks. * 7 Cheap Stocks That Make the Grade Even better is that, prices for many of the earlier developers remain below their peaks. This gives investors plenty of chances to snag-up some promising drug firms with some serious potential under their belts. But which ones to buy? Here are five clinical stage biotech stocks to buy today. Nightstar Therapeutics (NITE)One of the hottest trends in biotech stocks is gene therapy. There are thousands of diseases and disorders are caused by faulty genes. In a nutshell, gene therapy is fixing those problems by either adding new genes to fight faulty ones, replacing/editing missing/broken genes or actually "turning off" the genes causing problems. It's a major breakthrough and is just starting to get critical mass with the FDA and drug makers.On the ground floor of that is Nightstar Therapeutics (NASDAQ:NITE). NITE's main focus is on gene therapies for patients who suffer from rare inherited retinal diseases that would otherwise progress to blindness. The biotech has several candidates in various trials. It's lead product targeting a condition called choroideremia begun enrolling for phase 3 trials. Choroideremia is a rare disease that has no current treatments. Data so far for NITE's work here has been more than promising and has received several fast-track FDA designations based on early data.But NITE isn't done yet.The clinical stage biotech stock's work on X-Linked Retinitis Pigmentosa -- another genetic eye disease -- has proven successful as well. Nightstar was successful in its "proof of concept" during the fall of last year. Phase 2/3 data is expected in mid-2019.Both of these as well as NITE's full pipeline of other therapies could be very fruitful for investors over the next few years. And that makes the biotech stock a big buy. Ra Pharmaceuticals Inc. (RARX)Clinical biotech stocks can win if they are able to offer something better than established treatments. That's exactly Ra Pharmaceuticals' (NASDAQ:RARX) bag.Generalized Myasthenia Gravis (gMG) is a serious condition that progressively weakens muscles. It's rare and only around 60,000 Americans suffer from the disorder. The only drug approved to treat is the insanely priced Soliris. Soliris and its hefty price tag have allowed Alexion Pharmaceuticals (NASDAQ:ALXN) to reap billions in revenues. But that might end if RARX has its way.At the end of last year, RARX's lead therapy zilucoplan posted amazing phase 2 results for gMG. Digging into the data, Ra's drug was able to improve patients' quantitative MG scores by 6 points. Soliris was approved after improving patients scores by just 4.6 points. Now, that Soliris improvement was at a much great rate than those receiving a placebo, RA wasn't too far behind. What it really means is that RARX should be able to meet with the FDA to discuss the design of a phase 3 trial and work towards getting the drug approved.With a strong balance sheet and continued insider stock purchases, Ra Pharmaceuticals has plenty of potential to pay for that trial and actually see it to the end. * 5 Dow Jones Stocks That Will Lead the Market Higher For investors, with blockbuster replacement looming, RARX stock is alone biotech that shouldn't' be missed. Aurinia Pharmaceuticals (AUPH)Clinical stage biotech stocks tend to be gambles. That's sort of the situation with Aurinia Pharmaceuticals (NASDAQ:AUPH). A ton hinges on a late-stage trial reporting at the end of the year. However, it's a gamble that may be worth looking at.For AUPH, the mission remains to tackle lupus. Lupus remains one of the least understood auto-immune diseases. With lupus, the body's immune system mistakenly attacks healthy tissue. That's pretty bad by itself, however, many people often develop lupus nephritis (LN) and succumb to life-threatening kidney damage. Aurinia is developing a compound called voclosporin works by inhibiting an enzyme that activates immune cells. Voclosporin worked amazingly in phase 2 trials and had a high rate of success for LN patients.Aurinia should wrap phase 3 trials for the drug and LN treatments at the end of 2019. If it hits, analysts now peg sales of the medicine to fetch around $1 billion annually. Naturally, investors have placed a lot of stock on the drug and AUPH's potential. If it hits, investors could be looking at huge blockbuster and a sharp increase in AUPH stock.And if it doesn't, Aurinia may be ok as the firm is developing voclosporin for various indications as well. But given the potential, the firm may be one of the best clinical biotech stocks to buy for a gamble. Arena Pharmaceuticals (ARNA)Partnerships can mean big things for clinical stage biotech stocks. A prime example is Arena Pharmaceuticals (NASDAQ:ARNA).For starters, ARNA has a rich pipeline of treatments in mid-to-late stages of trials. This includes drugs for Ulcerative Colitis, Crohn's Disease, and IBS. That alone is worth the price of admission. But where Arena could be winning is in its drug Ralinepag. Ralinepag has been touted as potentially a best-in-class medicine for treating pulmonary arterial hypertension. So, naturally, any biotech firm that has drugs already on the market that could be threatened by the future blockbuster is willing to bend over backward to defend their position.And that's just United Therapeutics (NASDAQ:UTHR) did by paying Arena $800 million cash up-front as well as up to $400 million in milestone payments and double-digit royalties on sales in order to license Ralinepag.For Arena, this is a win-win. They get cash to develop it and other drugs in their platform and still are able to share in the long-term success of the drug. For investors, this is a big win as well and shows that ARNA's management is thinking about the total portfolio and not just one drug. * 5 Big-Yield REITs to Check Out Now In the end, Arena should have enough money to make its pipeline a reality and get more of its drugs out to market. That makes the clinical biotech stock one to bet on. Galapagos (GLPG)When it comes to late-stage biotech stocks or really any drug manufacturer, pipeline means everything. It's what drives your valuation and future potential. Luckily for clinical-stage firm Galapagos (NASDAQ:GLPG), its pipeline is very robust indeed. GLPG has multiple late-stage programs as well as 25 different drugs in discovery/early trial stages. But what separates Galapagos is that that pipeline is actually churning out real results.Partnering with biotech-giant Gilead (NASDAQ:GILD), GLPG's Filgotinib is quickly becoming a winner and after impressive phase-3 data, the duo has moved closer to marketing the drug rheumatoid arthritis. At the same time, Galapagos has scored wins in cystic fibrosis, idiopathic pulmonary fibrosis, systemic sclerosis and a fast-track designation for its osteoarthritis treatment.All in all, GLPG has many shots on goal to make it. That's very important to a clinical-stage biotech stock. And yet, last years rout of the sector sent shares of GLPG downwards and they've stayed that way. Today, Galapagos is still about 17% below its 2018 peak of $117 per share.Given its huge pipeline -- that is increasingly winning in trials -- that difference may not last long. When it comes to clinical stage biotech stocks, GLPG is one you must own.Disclosure: At the time of writing, Aaron Levitt was Long the iShares Nasdaq Biotechnology ETF -- which holds a position in GILD, ALXN, AUPH, GLPG, RARX, UTHR and ARNACompare Brokers The post 5 Clinical-Stage Biotech Stocks to Buy appeared first on InvestorPlace.
Biotechnology stocks and sector-specific ETFs climbed Monday after Roche (RHHBY) acquired gene therapy researcher Spark Therapeutics (ONCE). Among the best performing ETFs of Monday, the Invesco Dynamic ...
After languishing in the latter stages of 2018, the iShares Nasdaq Biotechnology ETF (NASDAQGM: IBB) , the largest biotech exchange traded fund by assets, and the SPDR S&P Biotech ETF (XBI) are sporting double-digit gains early in 2019. Some analysts see the potential for these biotech ETFs and other to lure more assets from investors. Healthcare stocks are also showing attractive valuations relative to other defensive sectors, which are richly valued.
It's debatable whether the stock market, as a whole, had a bear market or just a stiff correction to end 2018. There is, however, no such question about biotech stocks. The sector got clobbered last fall. The SPDR S&P Biotech ETF (NYSEARCA:XBI) dropped 35% from its September peak. It was a bear market, no doubt about it. However, pharma and biotech stocks have gotten off to a better start in 2019. Deal-making brought the sector back to life. For starters, Bristol-Meyers Squibb (NYSE:BMY) made one of the biggest deals in pharma history with its purchase of Celgene (NASDAQ:CELG). Shortly after that, Eli Lilly (NYSE:LLY) made a huge deal of its own, taking out oncology player Loxo (NASDAQ:LOXO). These big moves have investors focused again on the biotech sector. * 10 F-Rated Stocks That Could Break Your Portfolio With that in mind, here are five more biotech stocks to buy that could be winners in 2019. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Source: Shutterstock ### Gilead Sciences (GILD) Eli Lilly's deal to buy Celgene reignited the animal spirits in the biotech industry. Everyone is curious what big deal will happen next. For long-suffering biotech major Gilead Sciences (NASDAQ:GILD), it gets its turn in the spotlight now that Celgene is out of the picture. Gilead has looked cheap for a while now with its price-to-earnings ratio often below 10 in recent years. Its P/E ratio is still around 10 now. Unlike in the past, however, Gilead's Hep C franchise has just about stabilized in terms of revenues, and as such, earnings are set to rebound as well. Analysts see earnings-per-share rising from $5.40 last year to more than $6 this year and up to something in the $9 range in the year 2021. It's unlikely GILD stock will still sell under $70 once it is earning $9/share annually with EPS continuing to rise. On top of that, Gilead is very friendly to its shareholders. It has been buying back loads of its own stock in addition to its generous 3.3% dividend yield. Source: Shutterstock ### Novo Nordisk (NVO) Investors usually don't think of biotech stocks as either conservative or as good sources of dividend income. And, usually, they aren't -- we'll get to a couple more volatile high-risk, high-reward biotech names here in a minute. But for now, let's talk about Novo Nordisk (NYSE:NVO), which is the clear leader in diabetes treatment worldwide. It, like Gilead, is highly profitable and pays a strong 2.6% dividend. Novo is one of those so-called inevitable investments, in that demographics make it a very likely winner in the coming years. The rate of diabetes cases continues to explode throughout the world. Make no mistake about it: The diabetes epidemic isn't just a U.S. problem. Increasingly, even in emerging markets such as India and Mexico, diabetes-related health care costs are soaring. * 10 Cold Weather Stocks to Heat Up Your Returns Novo, which controls roughly 25% of the global market in that indication, is the logical winner from this epidemic. NVO stock plunged from its highs a couple years back on insulin pricing concerns. The stock has recovered from its worst levels but is still well short of all-time highs and sells for just 18x earnings. That's a pretty great valuation for a company whose product portfolio and addressable market continues to show serious expansion. While Novo is a very large company on its own, with a $90 billion market cap, the Celgene deal showed us that these sorts of bigger independent biotech firms can potentially be in play as well. Source: Shutterstock ### Puma Biotechnology (PBYI) Usually, biotech stocks crater after their drug fails to win Food and Drug Administration approval. Sometimes, however, a drug gets FDA approval and then the stock still plummets anyway. Meet Puma Biotechnology (NASDAQ:PBYI). Puma is a victim of the biotech disease known as the slow new drug launch. Puma started earning commercial revenues off its Nerlynx breast cancer adjutant in 2017. PBYI stock soared to as high as $120 as excitement around the drug launch mounted. Unfortunately, sales didn't pick up as quickly as expected. From Q3 2017 through Q3 2018, Nerlynx sales grew about $15 million per quarter compared to the prior quarter. That is solid growth, though not exponential. However, Q4 showed just a $1.8 million uptick in revenue, falling far below trend. The near absence of revenue growth combined with other concerns such as potential competition has sent investors into a state of panic. PBYI stock has plunged from as high as $83 just last spring to as low as $17 this past November. It's worth taking another look at PBYI stock now, however. At the end of the day, this is just a $1 billion market cap company doing nearly $250 million a year in revenues with a promising new cancer drug that has tests underway for other conditions beyond its initial breast cancer label. On top of that, Puma should be able to start launching its product in other markets, such as Europe, in addition to its domestic sales. Finally, if the price stays this low, Puma Biotechnology looks like a possible buyout target. Source: Shutterstock ### Aimmune Therapeutics (AIMT) Aimmune Therapeutics (NASDAQ:AIMT) offers investors an interesting catalyst trade. The company recently posted excellent results from its Phase III trial for its treatment to aid with peanut allergies. It is widely expected that Aimmune will commercially launch its product in 2019. In fact, the company already secured a $170 million loan package from KKR (NYSE:KKR) to get its peanut allergy medication commercially launched. That funding will also help fund trials of the therapy for egg allergies. Unfortunately, due to the recent government shutdown, the FDA delayed various paperwork, including Aimmune's marketing approval. With the government open again, that should come through soon, however, allowing AIMT stockholders to start focusing on the upside again. * The 7 Best Penny Stocks to Buy Ultimately, once the therapy is up and running, it should be a commercial success. The company estimates that there are 1.7 million children in the U.S. with peanut allergies, not to mention the global market. On top of that, the company is running tests for other food allergies such as eggs. At a market cap of just $1.3 billion, there's still upside for Aimmune as its product starts generating meaningful revenues. Source: Shutterstock ### Viking Therapeutics (VKTX) Finally, we have arguably the most controversial pick of the bunch, Viking Therapuetics (NASDAQ:VKTX). Make no mistake, this is among the riskier of the biotech names, and could have substantial downside if the bears are right. On the other hand, the stock could easily double or triple if events go well. What's the buzz around Viking? Last spring, VKTX stock spiked from $5 to $10 following positive clinical results from competitor Madrigal Pharmaceuticals (NASDAQ:MDGL). Madrigal and Viking's drug candidates for non-alcoholic liver disease use the same mechanism of action, thus suggesting that Viking's drug would be effective as well. Later that fall, Viking stock doubled again, hitting $20 following positive results of its own. Since then, VKTX stock has given back nearly all its gains, falling back to just $9. That is in large part due to a recent short report from Citron Research. Citron went after Ligand Pharmaceuticals (NASDAQ:LGND), causing a 22% decline in Ligand's share price. Ligand is a major backer of Viking, and Citron took some shots at Viking's prospects as well. Perhaps as a result, short sellers have pounded Viking, putting its short interest up to 37%. That could be a risky bet though, as Viking has a promising Phase 2 drug and $300 million (half the market cap) in net cash to keep doing research. At the time of this writing, Ian Bezek owned GILD and NVO stock. You can reach him on Twitter at @irbezek. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 S&P 500 Stocks to Buy That Tore Up Earnings * 10 Cold Weather Stocks to Heat Up Your Returns * The 7 Best Penny Stocks to Buy Compare Brokers The post 5 of the Best Biotech Stocks to Buy Now appeared first on InvestorPlace.
Last year's stock market sell-off may provide opportunities this year for investors. Miracle Mile's Brian Sterz offers his three best ETF ideas.
The bullish news triggered a minor uptick that reversed at range resistance in place since an October 2018 breakdown, but thin pre-market volume may not reflect buying and selling power after the opening bell. Biotech stocks have struggled since 2015 when Valeant Pharmaceuticals and Turing Pharmaceuticals provoked nationwide outrage and price gouging charges that eventually lead to Martin Shkreli's imprisonment and Valeant's rebranding as Bausch Health Companies Inc. (BHC).
Biotech ETFs allow investors to buy into a basket of biotech stocks, rather than trying to select specific winners. The best biotech ETFs are diverse, with less volatility.
Healthcare ETFs weakened Wednesday after Abbot Laboratories (ABT) slipped on a revenue miss and revealed an uninspiring forecast for the first quarter of the new year. The Health Care Select Sector SPDR ETF (XLV) fell 0.3% on Wednesday while the S&P 500 was 0.1% lower. Abbot Laboratories' quarterly revenue fell short of expectations due to lower sales of generic drugs in the emerging markets, Reuters reports.
So far, 2019 is starting off with a bang in the pharmaceutical industry. Last week, we learned that Bristol-Myers Squibb (NYSE:BMY) is buying out beleaguered Celgene (NASDAQ:CELG) in a behemoth $74 billion takeover. Eli Lilly (NYSE:LLY) followed that up with a large deal of its own, announcing an $8 billion offer for Loxo Oncology (NASDAQ:LOXO). Whether the purchase helps Eli Lilly stock in the long term is another question altogether. While it may seem small compared to the blockbuster Celgene deal, $8 billion is still a major announcement. Don't forget Gilead Science's (NASDAQ:GILD) deal to buy the revolutionary Hep-C cure company Pharmasset for $11 billion in 2011. Within a couple years, GILD stock quintupled as the Pharmasset drugs lifted Gilead's profitability to the stratosphere. Needless to say, Loxo, if it delivers in similar fashion, could fundamentally reshape Eli Lilly's future for many years to come. That's especially as Eli Lilly has some patent expirations of its own to consider and really could use a big new product launch or two. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks at Risk of the Global Smartphone Slowdown ### Loxo: A Steep Price Could Hamper Eli Lilly Stock It's no secret that biotech stocks got crushed in the 2018 correction. The SPDR Biotech ETF (NYSEARCA:XBI) dropped as much as 35% within three months. That meant that companies with strong balance sheets had the ability to go discount shopping. Bristol-Myers was first to take a big swing with the Celgene deal. However, Eli Lilly's move will also be a game-changer. Not only did Eli Lilly pay $8 billion for Loxo, they also paid a huge premium. LOXO stock previously traded as high as $188/share. Due to the biotech correction it was trading around $140 prior to Eli Lilly's offer. As such, you'd think something like $200/share (above Loxo's all-time high) would be enough to close the deal. Instead, Eli Lilly offered a whopping $235/share. Now, to be fair to Eli Lilly, Loxo did enjoy a positive development in that interim period; they managed to get FDA approval for their leading pipeline drug candidate. Though, that approval was widely expected. Regardless, Eli Lilly is paying heavily for a company that is just at the beginning of the commercialization process for their drug candidates. ### Loxo and Eli Lilly Stock Loxo has taken a different path from most companies in oncology. Instead of targeting its drugs for specific types of cancer, such as lung or prostate, Loxo targets genetic mutations. These genetic mutations appear to lead to cancers across a variety of different body parts. Loxo's first approved drug targets NTRK gene fusions. This is a rare condition which occurs in roughly 0.2% of the population. Loxo estimates that there are a few thousand eligible patients with NTRK fusions in the U.S. at this time. Thus, with a nearly $400,000/year price tag for the drug, it may take longer than expected for Loxo's product to become a huge commercial seller. The Chief Business Officer for Loxo, Jake Naarden, stated last year that: "We expect the initial launch to be challenging, though we remain optimistic about the longer-term trajectory. One of the truisms you often hear about new drug launches is that the first few quarters determine the commercial fate of the drug. Given the penetration of tumor genomic testing today, we do not believe that the first few quarters of this launch will inform very much." He makes an important point. Most oncology patients are not prescribed genomic testing today. Additionally, some genomic tests do not include the NTRK fusion. As a result, many potentially eligible patients may not know that Loxo has a beneficial therapy for their condition. This, however, highlights one big advantage to the Eli Lilly purchase. Eli Lilly has far more connections and influence within the medical community. It has the budget and reach to ensure that more cancer patients test their genomes and are aware of potential novel solutions. It's likely that Eli Lilly's purchase will bring Loxo's first drug far more attention and quicker clinical uptake. Loxo also brings its promising Loxo-292 therapy which is still in clinical trails. ### Eli Lilly Stock Takeaway One point in favor of the deal is that Eli Lilly has a strong balance sheet and can pay for Loxo with cash. Heading into the deal, Eli Lilly had $9 billion in cash against $13 billion in total debt. The Loxo purchase will consume almost all of the company's existing cash reserves, but still leave it in a reasonably sound fiscal position. After adjusting for one-time expenses, Eli Lilly will earn in the ballpark of $4.5 billion dollars for 2018. That means that it's net debt load is not especially problematic. On a debt/EBITDA basis, it comes in around 1.5x, which is quite conservative. From an earnings basis, the Loxo deal will consume just under two full years of Eli Lilly's ongoing net income. Given the limited size of Loxo's market, at least at first, Eli Lilly won't earn back its $8 billion purchase price in the near-term. But the potential is still great. Eli Lilly is buying a drug platform with a rather novel approach to treating cancer. If the company is able to commercialize other Loxo drugs that are earlier along in clinical trials, the deal could end up being a big win for Eli Lilly stock. At this point, Eli Lilly stock may be a bit overvalued. It's still trading at 20x forward earnings. That's quite aggressive for a pharma company, as patent expirations tend to keep PE ratios rather low. And Eli Lilly stock is up 35% over the past year which is a stark contrast to struggles elsewhere in the health care space. As for the Loxo deal in particular, it could pay off big, but for now, a wait and see approach seems most prudent. At the time of this writing, Ian Bezek owned GILD stock. You can reach him on Twitter at @irbezek. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post The Loxo Oncology Purchase Eventually Could Help Eli Lilly Stock appeared first on InvestorPlace.
TORONTO, ON / ACCESSWIRE / January 10, 2019 / The Wealthy Biotech Trader (or ''WBT''), an investment newsletter focused on showing everyday investors new opportunities in rapidly growing, little-known biotech, pharma, medical device stocks making news and subsequent market moves, would like to update investors on several breakthroughs in cancer therapies hitting the market. Stock investors have soured on biotech companies over the past several months, as demonstrated by the SPDR S&P Biotech ETF (XBI), off 30% since June, and the NYSE Biotechnology Index (NYSE:NBI), which has dropped from 3500 in mid-2018 to just under 3000 at year-end, and a host of their component companies and others in addition. One of those is Propanc Biopharma, Inc. (OTCQB:PPCB), an Australian biotech company with strong management and technology that has the potential to help millions of cancer patients worldwide.
Biotechnology stocks and sector-related ETFs were among the best performers Monday after Eli Lilly (NYSE: LLY) said it will acquire Loxo Oncology Inc. (NasdaqGS: LOXO) for $8 billion. Among the best performers ...