5 Biotech Stocks Poised to Grow in Trumpworld
11/14/2016 6:30:17 AM
November 14, 2016
By Mark Terry, BioSpace.com Breaking News Staff
The biotech stock market appears to have had a boost from the unexpected election of Donald Trump to the U.S. presidency. What that was actually related to the election, individual company catalysts, or the overlap with most third-quarter reports remains to be determined. On November 9, the iShares NASDAQ Biotechnology Index (IBB) rose 23.37 points, or 8.9 percent, to land at 284.99. There is some speculation that this is related to Trump’s silence on drug pricing and his vow to “repeal and replace” Obamacare.
It’s also been noted that that “around 72 percent of white men without college degrees voted for Trump.” That hardly seems like a demographic that would benefit from higher drug prices or higher insurance costs, so in many ways the immediate responses are a mystery. Nonetheless, InvestorPlace looks at five biotech stocks that investors might consider in light of Trump’s victory.
1. Enzo Biochem
Headquartered in Farmingdale, NY, Enzo (ENZ) is both a biotechnology company and a clinical diagnostic laboratory services company. It has three wholly owned subsidiaries, Enzo Life Sciences, Enzo Therapeutics, and Enzo Clinical Labs. Operations include research and development, manufacturing, and marketing of biomedical research products and tools. Enzo Clinical Labs is a regional clinical reference laboratory.
InvestorPlace writes, “The company’s expected growth rate for the current year is 15 percent. Following Trumps victory, the company’s shares surged 6.3 percent on November 9.”
Enzo stock is currently trading for $6.62.
Based in South San Francisco, Calif., Exelixis (EXEL) focuses on cancer treatments. It recently launched Cabometyx (cabozantinib) to treat advanced renal cell carcinoma (RCCC) in patients who have received prior anti-angiogenic therapy. In the third quarter of this year, the drug generated $31.2 million in net product revenue, its first full quarter of product sales.
InvestorPlace writes, “The company’s expected growth rate for the current year is 34 percent. After Trump’s victory, the company’s shares soared 20.5 percent on November 9.” It’s probably a good idea to evaluate whether this company’s stock increase has anything to do with the election results or its stellar start with a new cancer treatment.
Exelixis stock is currently trading for $16.40.
3. Genmab A/S
Located in Cophenhagen, Denmark, Genmab (GEN.CO) focuses in developing differentiated antibody treatments for cancer. Most recently, on November 10, the company announced that the European Medicines Agency (EMA)’s Committee for Medicinal Products for Human Use (CHMP) gave a positive opinion for the use of ofatumumab (Arzerra) in combination with fludarabine and cyclophosphamide (FC) to treat adults with relapsed chronic lymphocytic leukemia (CLL).
InvestorPlace writes, “The Zacks Consensus Estimate for its current year earnings surged 109.8 percent over the last 60 days. The company’s expected growth rate for the next year is a whopping 224.3 percent.”
Genmab stock is currently trading for 1,206 DKK.
4. Heska Corp.
Based in Loveland, Colo., Heska (HSKA) focuses on a variety of veterinary products, including blood diagnostic solutions, treatments, and digital imaging technology. At its third-quarter earnings report on November 1, the company reported $33.4 million in third-quarter revenue, an increase of 19 percent.
InvestorPlace writes, “The company’s expected growth rate for the current year is 72.4 percent. Following Trump’s victory, the company’s shares gained almost 3 percent on November 9.”
Heska stock is currently trading for $64.49.
5. Incyte Corporation
Based in Wilmington, Delaware, Incyte (INCY) has two products on the market, Jakafi and Iclusig. Jakafi is a JAK1 and JAK2 inhibitor to treat polycythemia vera. In May 2016, Incyte acquired the European rights to Iclusig for leukemia from Ariad Pharmaceuticals (ARIA).
InvestorPlace writes, “The company’s expected growth rate for the next year is a staggering 163 percent. After the Trump win, the company’s shares rallied almost 13 percent on November 9.”
Incyte stock is currently trading for $104.51.
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