4 Biotechs That Could Release Stock-Shattering Data Soon
May 10, 2017
By Mark Terry, BioSpace.com Breaking News Staff
Political rhetoric over drug pricing over the last 18 months has put a bit of a damper on biopharma stocks. Many Wall Street analysts noted that yesterday’s firing of FBI director James Comey and its resultant fallout is likely to delay any of the Trump administration’s attempts to change the tax code and install more business-favorable regulations. That said, a recent Stifel analyst report focused on four biotech companies with 80 percent to 200 percent upside potential.
Dicerna Pharmaceuticals
Based in Watertown, Mass., Dicerna Pharmaceuticals focuses on RNA interference (RNAi) as a way to silence genes in the liver. Its lead program is DCR-PHXC, currently in preclinical development to treat primary hyperoxaluria (PH). In its first-quarter earnings report on May 8, Dicerna announced a $70 million convertible preferred stock financing, which closed on April 11.
“The financing, led by Bain Capital Life Sciences and a syndicate of current and new investors, lends an additional level of validation to the potential of our proprietary GalXC RNAi technology platform,” said Douglas Fambrough, president and chief executive officer of Dicerna , in a statement. “Furthermore, the funds, when combined with cash already on-hand, provide us with the necessary resources to execute our stated strategy, which includes pursuing the advancement of our core therapeutic programs.”
Stifel gave it a price target of $9, while Wall Street consensus is $5.70. Dicerna is currently trading for $3.07.
2. Intrexon
Intrexon utilizes an integrated technology suite that it licenses for manipulating DNA, proteins and cells, which are used in a broad swath of industry, including health care, food, energy, environmental and consumer end products.
24/7 Wall Street writes, “Intrexon and the firm’s partner, Fibrocell , received FDA Orphan Designation for FCX-007 for the treatment of dystrophic epidermolysis bullosa, which includes recessive dystrophic epidermolysis bullosa (RDEB). In addition, FCX-007 has been granted Rare Pediatric Disease Designation and Fast Track Designation by the FDA for treatment of RDEB.”
Stifel gives the company’s stock a price target of $57, while the Wall Street consensus is $37.83. Intrexon is currently trading for $19.13.
3. Mallinckrodt Pharmaceuticals
Based in Staines-Upon-Thames, UK, Mallinckrodt Pharmaceuticals is a global specialty pharmaceutical company. For its recent first-quarter financial report, it noted $810.9 million in net sales in the first quarter, which were down 0.6 percent, with GAAP gross profit of $418.6 million.
24/7 Wall Street noted, “Top Wall Street analysts recently met with management and key takeaways were that U.S. health care policy change will be gradual, but the industry views greater price transparency, positively and MSD-LDD Acthar growth is supported by data build-out and volume gains. Stifel feels that Wall Street underappreciates the company’s pipeline, as clinical timelines for StratGraft and Terlipressin remain on track.”
Stifel’s price target is $85 compared to Wall Street consensus of $73.62. Mallinckrodt is currently trading for $44.50.
4. Horizon Pharma
With global headquarters in Dublin, Ireland, Horizon Pharma markets 11 drugs through its orphan, rheumatology and primary care business units. On May 8, the company announced it was buying River Vision Development Corp. and its development-stage drug teprotumumab (RV001), a fully human monoclonal antibody (mAb) in development for Thyroid Eye Disease (TED).
24/7 Wall Street writes, “The company missed market expectations on both the top and bottom lines in its first-quarter report. The company said revenues grew 7.9 percent, driven by strong growth from Horizon’s orphan and rheumatology business units, but offset by lower sales in the primary care business unit.”
Stifel dropped its price target from $35 to $20, but kept a “buy” rating. The consensus price target is $21.40. Horizon is currently trading for $9.50.