September is typically an ugly month for stocks. According to CNBC, on a 100-year basis, September is the only month that has a losing record. So take a break from market dynamics with these exciting biotech options. Biotech stocks march to a different tune. They can spike massively on positive news — be it key trial results or regulatory approvals. Of course, the opposite is also true and stocks can crash just as quickly on unexpected disappointments (delays, failed trials, regulatory rejection). With that in mind, we used TipRanks to ensure two crucial points: 1) big support from the Street (in fact, all these stocks have received only buy ratings in the last three months) and 2) eye-watering upside potential ahead. Now let’s see how the following hot stocks tick these two boxes:
Sorrento Therapeutics, Inc (NASDAQ:SRNE)
Sorrento is a clinical-stage biopharma developing new therapies to turn malignant cancers into manageable and possibly curable diseases. This includes everything from antibodies to pain management- including non-opioid pain medication ZTlido.
This medicated lidocaine plaster received FDA approval earlier this year and is now gearing up for launch. Top HC Wainwright analyst Ram Selvaraju (Profile & Recommendations) believes ZTlido “possesses best-in-class properties within the topical lidocaine niche.” He has a $40 price target on the stock- indicating massive upside potential of 647%!
The best part is that ZTlido uses far less lidocaine than in Lidoderm while efficacy is maintained due to improved adhesion and delivery. Overall, this ‘Strong Buy’ stock has a $21.67 average analyst price target (305%).
Tocagen Inc (NASDAQ:TOCA)
This cutting-edge biotech stock is at the forefront of cancer therapy. Tocagen is developing an RRV platform that can selectively deliver therapeutic genes into the DNA of cancer cells.
Now top Chardan Capital analyst Gbola Amusa (Profile & Recommendations) is out with a new bullish note. “We initiate coverage on Tocagen with a Buy rating (PT$30), on the risk-reward proposition on its pivotal, phase III, BTD/PRIME-designated therapy, Toca 511 & Toca FC, for high-grade gliomas (HGGs)” he wrote on August 30.
With shares just at $12, this suggests upside potential of 150%. Amusa- a five-star analyst- points out that initial results have produced impressive, and in some cases, durable results in rHGG patients, which otherwise typically see fatality in 8-11 months.
Galmed Pharmaceuticals Ltd (NASDAQ:GLMD)
Galmed Pharma has just released one-year biopsy results for NASH (non-alcoholic steatohepatitis, a type of fatty liver disease) for its lead drug Aramchol. NASH represents a huge untapped pharma market, with up to 18 million NASH-sufferers in the US today.
“We believe Aramchol’s result for NASH resolution without worsening of fibrosis to be unequivocally positive” gushes top HC Wainwright analyst Ed Arce (Profile & Recommendations). This is on top of “excellent” safety and tolerability results. He sees shares surging by 171% to hit $36.
As we can see below, this falls exactly in line with the average analyst price target. In the last three months, 5 analysts have published back-to-back Buy ratings on GLMD…
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