Three biotech stocks gained over 25 percent last week.
With the recent volatility in the stock market, most investors were happy to note that biotech stocks were more stable than the general market. Three biotech stocks in particular gained 25 percent or more last week. Keith Speights, writing for The Motley Fool, took a look.
#1. Alkermes. Headquartered in Dublin, Ireland, Alkermes recently submitted a New Drug Application to the U.S. Food and Drug Administration (FDA) for ALKS 5461, a once-daily oral drug to treat major depressive disorder (MDD). It was based on data from more than 30 clinical trials on more than 1,500 patients. In the trials, the drug showed a consistent antidepressant activity with good safety and tolerability. The drug was given Fast Track status by the FDA in October 2013.
“ALKS 5461 represents the first potential treatment option with a novel mechanism of action for the treatment of depression in 30 years,” said Eliot Ehrich, the company’s executive vice president, Research and Development, in a statement. “We believe its unique pharmacology may provide distinct clinical benefits for the large number of patients who do not get adequate relief from first-line standard antidepressant therapy.”
Company shares spiked 25 percent last week, also likely spurred by its fourth-quarter financial reports, which exceeded analysts’ estimates. Speights writes, “Alkermes CFO James Frates predicts that 2018 will be ‘a transformative year’ for the biotech. He’s probably right. The company anticipates Food and Drug Administration (FDA) approval by June 30 for its aripiprazole lauroxil nanocrystal dispersion designed for initiation onto schizophrenia drug Aristada. Alkermes hopes to win FDA acceptance of its regulatory filing for depression drug ALKS 5461 soon. Also, the company’s partner, Biogen, should submit multiple sclerosis drug BIIB098 (formerly known as ALKS 8700) for FDA approval in the second half of the year.”
#2. ImmunoGen. Based in Waltham, Massachusetts, ImmunoGen, Inc. stock rose 27 percent last week, partly on the basis of its fourth-quarter results on February 9. Since the company doesn’t generate any revenue of its own yet, investors were mostly looking at the promise of upcoming products.
Speights writes, “ImmunoGen’s lead candidate mirvetuximab soravtansine is what investors are most interested in. The antibody-drug conjugate holds promise in treating ovarian cancer in patients who are platinum-resistant. ImmunoGen has several clinical studies in progress for the drug, the most important of which is its Forward I study of mirevetuximab as a monotherapy. If all goes well, the biotech could launch the drug in 2020.”
#3. Sorrento Therapeutics. Located in San Diego, Sorrento Therapeutics, Inc. focuses on developing antibody therapeutics for cancers and other diseases. It has a number of assets for immuno-oncology and pain. Company stocks grew more than 29 percent last week, and it appears to be based on future promise as well. Sorrento shares have grown almost 140 percent year to date. Speights writes, “First the company expects to receive FDA approval for ZTlido this month. ZTlido is a lidocaine patch for treatment of postherpetic neuralgia—pain caused by shingles. Another factor behind the interest in Sorrento is its immuno-oncology pipeline. The biotech is developing cheimeric antigen receptor T-cell (CAR-T therapies that are non-viral, which could offer several benefits over CAR-T that use lentivirus, retrovirus, or adeno-associated virus.”
