7 Biotech Stocks to Watch in 2017
December 30, 2016
By Alex Keown, BioSpace.com Breaking News Staff
NEW YORK – On the cusp of the start of a new year, investors are looking at which stocks to pick for 2017. Analysts at Zacks and the Motley Fool selected seven biotech stocks for investors to add to their portfolios.
1. Seattle Genetics
Despite a partial clinical hold on Seattle Genetics ’ early-stage clinical trials of vadastuximab talirine (SGN-CD33A) in acute myeloid leukemia placed earlier this month after four patients died, Motley Fool’s Brian Orelli said the company is poised to have a strong 2017 if it can expand sales of Adcetris. He said the company plans to approach the U.S. Food and Drug Administration in early 2017 for approval to treat patients with cutaneous T-cell lymphoma, which he said should boost sales. The company is also expecting results from its Phase III trial with newly diagnosed Hodgkin lymphoma patients. If things go as hoped, the stock could see significant growth over the next year. Shares of Seattle Genetics are currently trading at $53.69, although that is still down from the Dec. 27 price of $61.86 per share, the day the clinical hold was placed.
2. Exelixis
2016 was a good year for Exelixis as it won approval in the U.S. and Europe for its kidney cancer drug Cabometyx. The drug was approved as a second-line treatment, but it is aiming for approval as a first-line therapy in kidney cancer. The company is looking to expand the use of the drug for use in liver cancer patients. If the drug does see an expanded use, that would drive stock prices. Shares of Exelixis are trading at $15.03 this morning.
3. Clovis Oncology
The approval of ovarian cancer drug Rubraca was a nice Christmas present for Clovis Oncology . The drug was approved earlier this month for patients who have already gone through two chemotherapy treatments, but Clovis is looking to expand the use of the drug as a maintenance therapy.
4. Kite Pharma
Earlier this month, Kite initiated rolling submission for approval of KTE-C19, now known as axicabtagene ciloleucel, as a treatment for patients with relapsed/refractory aggressive B-cell non-Hodgkin lymphoma (NHL) who are ineligible for autologous stem cell transplant (ASCT). The company expects to complete its BLA submission by the end of the first quarter of 2017. Kite believes the interim data of the Phase II trial released in September will be strong enough to lead regulators at the U.S. Food and Drug Administration to ultimately give its approval–making KTE-C19 the first CAR-T therapy to reach the market. Shares of Kite are trading at $45.44 this morning.
5. Regeneron
Regeneron ’s rocky 2016 could see a correction with approval of an RA drug that was initially rejected due to manufacturing issues. The drug, sarilumab, is being co-developed with Sanofi . The FDA objected to the drug due to certain deficiencies identified during a routine good manufacturing practice inspection of the Sanofi Le Trait facility in France where sarilumab is filled and finished. The companies are working on the problems and if corrected, could lead to approval. If approved, sarilumab is expected to generate $557 million in annual revenue by 2022, according to analysts’ projections. Earlier this month, Regeneron and Sanofi filed for approval of Dupixent (dupilumab) for the treatment of adults with moderate-to-severe atopic dermatitis with the European Medicines Agency. Shares of Regeneron are trading at $373.66.
6. Vivus
A developer of drugs for the treatment of obesity, sleep apnea, diabetes and sexual health, Vivus is expected to have a growth rate of nearly 34 percent, according to Zack’s analysts. Shares of Vivus are trading at $1.18 this morning.
7. GenMab
Denmark-based GenMab is also expected to see strong growth this year. Zack’s analysts suggest the company will see growth of about 17 percent.