Biotech companies are currently focused on developing viable drugs, therapies and medical diagnostics tests to treat critical diseases and serious ailments through tech integration. Investors have been betting on the biotech space to reap substantial returns over the long term, given the aging population and inelastic demand for medication. This is evidenced by the iShares Nasdaq Biotechnology ETF’s (IBB) 7.7% returns over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 1.8% gains.
With biotech companies leveraging next generation technology and genome mapping methods to revolutionize healthcare, the global biotechnology market is expected to grow at a 15.5% CAGR to hit $850.50 billion by 2027.
Therefore, we believe the shares of fundamentally sound biotechnology stocks Amgen Inc. (AMGN – Get Rating), Gilead Sciences Inc. (GILD – Get Rating), Illumina, Inc. (ILMN – Get Rating), and Regeneron Pharmaceuticals, Inc. (REGN – Get Rating) have the potential to continue soaring.
AMGN is a biotechnology company that discovers, develops, manufactures, and delivers human therapeutics for the treatment of serious illness in the areas of oncology/hematology, cardiovascular disease and neuroscience. The company distributes its products through pharmaceutical wholesale distributors and direct-to-consumer channels. AMGN is based in Thousand Oaks, Calif.
This month, the Japanese Ministry of Health, Labor and Welfare granted marketing approval for AMGN’s Aimovig for the suppression of migraine attacks in adults. Aimovig is the first and only approved treatment in Japan to block the calcitonin gene-related peptide receptor (CGRP-R), which is believed to play a critical role in migraine. This approval should enable AMGN to expand its market reach in the coming months.
On June 1, AMGN and Kyowa Kirin Co.,Ltd. announced an agreement to jointly develop and commercialize KHK4083, which is Kyowa Kirin’s Phase 3-ready anti-OX40 fully human monoclonal antibody for the treatment of atopic dermatitis, with potential in other autoimmune diseases. Both companies hope to generate good sales from the commercialization of KHK4083 in various global markets.
For its fiscal year 2021 second quarter, ended March 31, AMGN’s operating income has increased 5% sequentially to $2.86 billion. The company had $6.11 billion in cash and cash equivalents as of March 31, 2021.
AMGN surpassed the Street’s EPS estimates in three of the trailing four quarters. A $6.43 billion consensus revenue estimate for the current quarter, ending June 30, 2021, represents a 3.5% rise from the prior-year period. The stock’s EPS is expected to grow at a 6.4% rate over the next five years. It has climbed 6.9% over the past six months to close yesterday’s trading session at $242.46.
AMGN’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock has an A grade for Quality, and a B grade for Value and Stability. To see additional POWR Ratings for AMGN’s Growth, Sentiment, and Momentum, click here. AMGN is ranked #12 of 494 stocks in the Biotech industry.
GILD is a research-based biopharmaceutical company that discovers, develops and commercializes medicines in areas of unmet medical need. The Foster City, Calif., company’s primary areas of focus include treatments for HIV/AIDS, liver diseases, cancer, inflammatory and respiratory diseases and cardiovascular conditions.
GILD company Kite this month announced top-line results from the primary analysis of ZUMA-7, a randomized Phase 3 multicenter study showing superiority of CAR T-cell therapy Yescarta, compared to standard of care (SOC) in adult patients with second line relapsed or refractory large B-cell lymphoma (LBCL). Approximately 40% of patients with LBCL will need second-line treatment because their cancer will either relapse or become refractory to treatment. Consequently, this study is expected to make a significant contribution in the treatment of LBCL patients.
Also this month, GILD’s Kite and Shoreline Biosciences, Inc. (Shoreline), a biotechnology company, announced a strategic partnership to develop…
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