The COVID-19 pandemic has accelerated the growth of the biotech industry, motivating it to move speedily to help the world fight the COVID-19 pandemic with vaccines and therapies. In addition, the continued spread of the highly contagious COVID-19 Delta variant is supporting sustained investor interest in the industry.
Companies’ increasing focus on this space and on finding cures for other incurable diseases should help the industry keep growing. According to Vision Research Reports, the global biotechnology market is expected to grow at a 16.8% CAGR between 2021 -2030. Regarding the biotech market’s performance, Miller Tabak's Matt Maley recently told CNBC, “I think this is a great entry point for long-term investors and even short-term ones who like to be a little bit more on the active trading side of things.”
Though most biotech stocks are high-risk-high-reward investment propositions, we think it could be wise to bet now on fundamentally sound stocks QIAGEN N.V. (QGEN), Exelixis, Inc. (EXEL), and Vanda Pharmaceuticals Inc. (VNDA) to cash in on the industry’s growth.
Click here to checkout our Healthcare Sector Report for 2021
QIAGEN N.V. (QGEN)
Headquartered in Venlo, the Netherlands, QGEN provides sample and assay technology to transform biological samples into valuable molecular insights. It offers bioinformatics, molecular diagnostics, next-gen sequencing, and genomic services. It also offers primary sample technology consumables, such as nucleic stabilization and purification kits.
On July 20, 2021, QIAGEN initiated a new $100 million share repurchase program for up to $100 million of shares through September 17, 2021. This is expected to boost the company’s financials soon.
QGEN’s net sales increased 28% year-over-year to $567.30 million in the second quarter, ended June 30, 2021. Its operating income came in at $161.30 million, up 35.9% year-over-year. Its adjusted net was $154.70 million, up 20.1% year-over-year, and its adjusted EPS came in at $0.67, up 21.8% year-over-year.
Analysts expect QGEN’s revenue and EPS to hit $1.86 billion and $2.11, respectively, in its fiscal year 2021. Also, its EPS is estimated to grow 9.9% per annum in the next five years. In addition, it has surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past six months, the stock has gained 5.2% in price to close Friday’s trading session at $53.99.
QGEN’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which indicates a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
QGEN has a B grade for Growth, Value, Stability, and Quality. Within the Biotech industry, it is ranked #4 of 509 stocks. Click here to see the additional POWR Ratings for Momentum and Sentiment for QGEN.
Exelixis, Inc. (EXEL)
Oncology-based biotechnology company EXEL focuses on discovering, developing, and commercializing new medicines to treat cancers in the USA. The San Francisco concern’s products include CABOMETYX tablets and COMETRIQ capsules for cancer treatment.
On October 14, 2021, EXEL and STORM Therapeutics entered an exclusive collaboration and license agreement to discover and develop novel RNA modifying enzyme inhibitors. Peter Lamb, Ph.D., Executive Vice President, Scientific Strategy and Chief Scientific Officer, EXEL, said, “We believe this collaboration has the potential to expand our portfolio of differentiated small molecule therapies in the field of oncology and deliver a first-in-class ADAR1 inhibitor.”
EXEL’s total revenues increased 48.4% year-over-year to $385.18 million for its fiscal second quarter, ended June 30, 2021. The company’s income from operations came in at $123.01 million, up 62.9% year-over-year. Its net income for the quarter was $96.09 million, up 43.8% from the year-ago period. Also, its EPS came in at $0.30, up 42.9% from the prior year’s quarter.
For its fiscal year 2021, analysts expect EXEL’s revenue to be $1.39 billion, representing a 40.3% year-over-year rise. The company’s EPS is expected to increase 80% year-over-year to $0.63 in fiscal 2021. Over the past three months, the stock has gained 26.3% in price to close Friday’s trading session at $21.40.
EXEL’s POWR Ratings reflect this promising outlook. The stock has an overall A rating, which equates to a Strong Buy in our POWR Rating system. Also, the stock has an A grade for Value, and a B grade for Growth, Sentiment, and Quality.
Click here to see EXEL’s ratings for Momentum and Stability as well. Again, EXEL is ranked #5 in the Biotech industry.
Vanda Pharmaceuticals Inc. (VNDA)
VNDA is a Washington, D.C.-based biopharmaceutical company that focuses on developing and commercializing therapies to address high unmet medical needs. The company's marketed products include HETLIOZ, and its products under development include HETLIOZ, Fanapt, and Tradipitant.
On July 28, 2021, Michael H. Polymeropoulos, M.D., VNDA's President, CEO and Board Chairman, said, “Our tradipitant in gastroparesis program is nearing completion, bringing us closer to a much-needed new treatment option for patients with gastroparesis and a potentially transformational commercial opportunity for Vanda.”
VNDA’s revenue increased 9.2% year-over-year to $67.9 million in its fiscal second quarter, ended June 30, 2021. Its income from operations came in at $12.37 million, up 34.9% from the previous period. Furthermore, its net income came in at $9.65 million, up 10.8% year-over-year. Also, its EPS was $0.17, up 6.3% year-over-year.
For its fiscal year 2021, VNDA’s revenue and EPS are expected to grow 14.5% and 28.6%, respectively, year-over-year to $284.13 million and $0.54. It surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past nine months, the stock has gained 28.9% to close Friday’s trading session at $18.30.
VNDA’s strong fundamentals are reflected in its POWR ratings. The stock has an overall B rating, which equates to a Buy in our proprietary rating system.
In addition, it has an A grade for Value, and a B grade for Quality. VNDA is ranked #9 in the Biotech industry. Click here to see the additional POWR Ratings for VNDA (Growth, Momentum, Stability, and Sentiment).
Click here to checkout our Healthcare Sector Report for 2021
QGEN shares were trading at $54.53 per share on Monday morning, up $0.54 (+1.00%). Year-to-date, QGEN has gained 3.18%, versus a 22.75% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.3 Promising Biotech Stocks to Buy Right Now appeared first on StockNews.com