Biotechnology has been one of the most sought-after industries amid the coronavirus outbreak. This makes sense, as a huge investment has been made for the development of a vaccine or treatment by both government and private organizations. In addition, the search for COVID treatments has put renewed focus on the demand for new drugs for other conditions.
The iShares Nasdaq Biotechnology ETF (IBB), which can be used as an indicator of the performance of biotech stocks, gained more than 36% since hitting its low in mid-March. This compares to the S&P 500’s 27.1% return over the same period. Performance for the sector should continue into next year whether the pandemic is over or not.
With a promising pipeline of candidates, Amgen, Inc. (AMGN – Get Rating), Immunomedics, Inc. (IMMU – Get Rating), Trevena, Inc. (TRVN – Get Rating), and Celldex Therapeutics, Inc. (CLDX – Get Rating) are four biotech stocks worth considering for the long-term.
AMGN is one of the world’s leading independent biotechnology companies. It is focused on developing human therapeutic medication for the treatment of cardiovascular, oncology, and neuroscience related diseases.
On October 8th, AMGN, Cytokinetics (CYTK), and Servier announced positive topline results from GALACTIC-HF, a Phase 3 pivotal clinical trial of omecamtiv mecarbil in patients with heart failure with reduced ejection fraction (HFrEF). The results of GALACTIC-HF show that treatment with omecamtiv mecarbil achieved the primary composite efficacy endpoint and demonstrated a statistically significant effect to reduce cardiovascular (CV) death or heart failure events compared to a placebo given to patients in the study.
On October 5th, the company announced positive topline Phase 2 results from the CodeBreaK 100 clinical study, evaluating sotorasib (proposed INN for AMG 510) in 126 patients with KRAS G12C-mutant advanced non-small cell lung cancer (NSCLC), who had failed a median of two prior lines of anti-cancer therapies (immunotherapy and/or chemotherapy). In September 2020, the company had entered into a global antibody manufacturing collaboration with Eli Lilly and Company (LLY) to significantly increase the supply capacity available for Lilly’s potential COVID-19 therapies. This would allow the two companies to generate profits from scaled up production and supply.
AMGN reported a 6% year-over-year increase in total revenues to $6.20 billion for the second quarter ending June 2020. EPS increased 7% from the year-ago value to $4.25, surpassing the consensus estimates by 11.3%. The market expects company’s revenue to grow 10.7% in the current quarter and 7.1% in the current year. EPS is expected to grow 3.8% in the current quarter and 6.4% in the current year. Also, the market expects the EPS to grow at a rate of 6.9% per annum over the next five years.
AMGN has gained more than 35% since hitting its 52-week low in mid-March. The stock hit its 52-week high of $264.97 in July.
How does AMGN stack up for the POWR Ratings?
A for Trade Grade
B for Buy & Hold Grade
A for Peer Grade
B for Overall POWR Rating.
It is also ranked #1 out of 377 stocks in the Biotech industry.
IMMU is a leading biopharmaceutical company developing monoclonal antibody-based products for targeted cancer treatment. It recently transitioned from a research and development organization into a fully-integrated global biopharmaceutical company.
Its pipeline comprises six clinical stage product candidates. In September, Gilead Sciences (GILD) announced that it has entered into an acquisition agreement with IMMU for $21 billion, which is expected to close by the fiscal fourth quarter ending December 2020.
IMMU’s product Trodelvy has garnered $20.10 million in sales over the first two months of its commercial launch in April. The company’s revenue is expected to…
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