10 Biotech Stocks Analysts are Upbeat About in May
May 23, 2016
By Alex Keown, BioSpace.com Breaking News Staff
NEW YORK – With how volatile the S&P Biotechnology Index has been in the first five months of 2016, it may seem that investing in pharmaceutical stocks this year is something akin to betting on black in a Las Vegas casino.
But while some stocks have not been performing as strongly as many investors would like, there are still a number of companies that industry analysts believe have strong long-term potential. Analysts at 24/7 Wall Street selected 10 biotech and pharma stocks to add to your portfolio this month, but noted that these are not investments for a quick buck and some proposed are “highly speculative.”
Amarin
Analysts said Vascepa, used for treatment of mixed dyslipidemia, could be beginning to “bear fruit” and they expect to see a “steep upward trend” over the next few months. Shares of Amarin are up 3 percent this morning, trading at $1.78 per share.
Amicus Therapeutics
Trading at $6.92 per share this morning, Amicus Therapeutics should see an increase in share value after its Fabry disease treatment migalastat launches in the European Union on June 1. The U.S. Food and Drug Administration is expected to rule on migalastat later this year. Amicus also has treatments for epidermolysis bullosa and Pompe disease in its pipeline, which could also soon win approval.
Arrowhead Pharmaceuticals
Shares of Arrowhead are up this morning, trading at $5.74 per share.
Aveo Pharmaceuticals
Although recently hit with a $4 million fine by the feds for misleading investors about its kidney drug Tivozanib, AVEO Oncology , which used to be called Aveo Pharmaceuticals, is considered a promising stock for 2016. The stock, which is trading at 88 cents per share this morning, has a target of $2.35 per share.
Depomed
Shares of California-based Depomed are up about 2 percent this morning, trading at $20.37 per share and analysts have predicted the stock could hit $28 per share. Shares of the stock have been bolstered after a court provided the company with an additional 30 days before generics could compete with its opioid pain medication Nucynta.
Editas Medicine
Gene therapy company Editas Medicine, which went public earlier this year, has been supported by the likes of Bill Gates, which sent its shares up. A new deal signed with the Cystic Fibrosis Foundation means the company is poised to grow some more. Shares of Editas are currently trading at $33.58 this morning.
Geron
Shares of Geron are trading at $2.87 this morning. Analysts at 24/7 reported the stock has a fair value estimate of $6.50 per share, which could yield big dividends for investors.
Paratek Pharmaceuticals
Bolstered by positive results from a Phase III trial of its omadacycline oral-only skin infection treatment, shares of Paratek could hit $30 by year end. This morning shares are up nearly 4 percent to $14.66.
Tesaro
Trading at $45.07 per share this morning, Tesaro could hit $56 per share later this year, analysts said. The company is expected to present data on its oncology treatments at the American Society of Clinical Oncology annual meeting next month in Chicago and if the data is promising, shares could jump.
Aduro Biotech
Last week shares of Aduro lost more than 25 percent of their value after the company’s Phase II trial for its combination pancreatic cancer drug, CRS-207 did not meet its primary endpoint of survivability. However, the stock gained back about 10 percent of its losses by week’s end. Although Aduro’s target price has been cut by analysts, it still has the potential to swing back to $22 per share despite the letdown of its Phase II trial.