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5 Absurdly Cheap Biotech Stocks That Could Make You Filthy Rich

2020-03-22 09:40

The coronavirus pandemic has been bad news for nearly every type of asset class in 2020. On the flip side, this indiscriminate wave of selling has undoubtedly created some amazing buying opportunities for long-term investors. Biotech stocks, for instance, were particularly hard hit by the market's "man with a hammer" behavior over the past two weeks.

What's noteworthy about the biotech space is that these companies should prove to be largely immune to any economic downturn. People aren't going to stop taking their prescription medicines. after all. What's more, some biotechs are already playing a critical role in the battle against the COVID-19 illness by accelerating the development of novel medicines and vaccines. In short, opportunity knocks for those brave souls willing to buy biotechs in this volatile and exceedingly moody market.

Image source: Getty Images.

Whichbiotech stocksare simply too cheap to ignore right now? Amicus Therapeutics (NASDAQ:FOLD), Bicycle Therapeutics (NASDAQ:BCYC), Catalyst Pharamceuticals (NASDAQ:CPRX), Inovio Pharmaceuticals (NASDAQ:INO), and Novavax (NASDAQ:NVAX)all have the potential to deliver life-changing gains for risk-tolerant investors. Here's what you need to know about these five absurdly cheap biotech stocks. Amicus Therapeutics: A leader in the field of rare diseases

Amicus is a rare-disease drugmaker that's held up fairly well against the wave of panic-selling this year. So far in 2020, for instance, the company's shares have lost only about 11% of their value, compared with the nearly 30% losses posted by some of the broader market indices. Amicus' resilence in this trying time is due to its Fabry disease treatment Galafold, its upcoming Pompe disease therapy called AT-GAA, and a host of experimental-stage gene therapies for a variety of rare diseases.

The big headline is that Amicus should sport no less than$2 billion in annual revenueby the middle of the decade, and it has a real shot at generating a far greater amount in the second half of the 2020s, perhaps in the area of $5 billion. To put these revenue projections into context, Amicus' market cap currently sits at $2.2 billion. So unless the whole world falls apart, this orphan-drug maker should turn out to be an absolute steal at current levels.

Bicycle Therapeutics: An underappreciated novel cancer play

Bicycle Therapeutics isn't a particularly well-known name among biotech investors, given that its IPO was only last year. However, this novel immunoncology company is poised to potentially take the field by storm over the next few years. Keeping with this idea, the company recently inked two collaboration deals with giants of the industry -- one with

Roche

and the other with Cancer Research UK -- to advance its proprietary bicyclic peptide platform.

The basic idea is to develop therapies that employ the best properties of monoclonal antibodies and small-molecule drugs. By doing so, Bicycle aims to harness the therapeutic targeting power of monoclonal antibodies, and use the ability of small molecule drugs to penetrate deep inside target tissues, while also making their synthesis fairly straightforward and cost-effective.

The company is only now gearing up for a midstage trial of its anti-cancer platform, so it is a way removed from producing a pivotal-stage data readout. But its novel approach to anti-cancer therapeutics may end up attracting a sizable buyout offer soon. Bicycle, after all, is just the kind of company that tends to catch the eye of big pharma.

: A beaten-down orphan drug play

If you're looking for extreme bargains in this market, Catalyst Pharmaceuticals needs to be at the top of your shopping list. This small-cap rare-disease drugmaker has gotten slammed this year for no good reason whatsoever.

In a nutshell, Catalyst markets a Lambert-Eaton myasthenic syndrome medication called Firdapse. Although the drug's annual price has sparked controversy, this pricing debate has had almost no impact on its annual sales. Per the company's latest quarterly update, for instance, Firdapse is on track to haul in between $135 million to $155 million in sales in 2020. Catalyst's stock is thus trading at something along the lines of just two times 2020 sales and one and half times 2021 projected sales.

That is an absurd valuation for an orphan-drug maker. Historically, rare-disease companies trade at over 15 times annual sales. So once the market gets back on its feet, Catalyst's stock should skyrocket. Now, it may take a while for this enormous value proposition to take shape, but it will almost certainly happen at some point (barring another black-swan type of event). As such, risk-tolerant investors may want to pounce on this beaten-down biotech stock soon.

Inovio Pharmaceuticals: A COVID-19 vaccine angle

Inovio's shares have been on fire this year because of its experimental COVID-19 vaccine called INO-4800. To date, the company has received a $9 million grant from the Coalition for Epidemic Preparedness Innovations, and a $5 million grant from the Bill and Melinda Gates Foundation to supercharge the vaccine's development. As things stand now, Inovio expects to haveINO-4800in a human trial by April, with top-line data available by early fall. By the end of the year, the company plans to have approximately 1 million doses available for additional trials, or for emergency purposes.

Any company that successfully develops an effective and safe vaccine for COVID-19 will have a major cash cow on its hands. Per the latest models, the U.S. could be facing as many as 1.1 million deaths from this highly infectious respiratory disease after all -- that is, unless a vaccine or an effective anti-viral treatment emerges and emerges quickly.

As Inovio's market cap is only about $1 billion at the time of writing, it's fairly safe to say that INO-4800 could transform this small-cap biotech stock into a jackpot type equity (a stock that is woefully undervalued because the market grossly misprices the value of an upcoming catalyst).

All that being said, Inovio is far from alone in the race to develop a vaccine and the company's DNA-based vaccine platform has yet to produce a commercial-stage product. As such, eager investors shouldn't discount the serious risk associated with this vaccine play. Inovio, in short, is the epitome of a high-risk, high-reward biotech stock. Novavax: Flu vaccine data incoming

Novavax is another vaccine developer that might see a huge jump in its share price soon. This clinical-stage biotech stock is interesting for two reasons. First and foremost, the company is scheduled to release top-line data for its flu vaccine candidate, NanoFlu, before the end of March. As these data could form the basis of a regulatory filing and subsequent entrance into a multi-billion dollar vaccine market, there's no doubt that Novavax's stock would soar if these trial results hit the mark.

Second, Novavax is gearing up to trial a COVID-19 vaccine candidate of its own. The company is a few weeks behind the leaders in the space, but it does have an outside shot of morphing into a top player in the COVID-19 vaccine game. That's a big deal because Novavax's market cap of $533 million is a drop in the bucket compared to the ginormous commercial prospects of this rapidly emerging market.

Like its fellow vaccine developer Inovio, however, Novavax hasn't had any success at bringing a vaccine to market, despite multiple shots on goal in the recent past. As such, investors definitely shouldn't own more of this speculative vaccine stock than they can afford to lose. Novavax's upside potential is enticing, but its downside risk is equally as noteworthy.

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图片来源:Getty图片。

生物技�镜墓善毕衷谑欠阋硕荒鼙缓坑寻钪瘟乒�(纳斯达克代码:FED)、自行车治疗公司(纳斯达克市场代码:BCYC)、催化制药公司(纳斯达克市场代码:CPRX)、Inovio制药公司(纳斯达克市场代码:INO)和Novavax公司(纳斯达克市场代码:NVAX)都有潜力为风险承受能力强的投资者带来改变寿命的收益。以下是你需要了解的关于这五种非常便宜的生物技�钡男畔ⅰV瘟蒲В汉奔膊×煊煜日�

友邦是一家罕见的疾病制药商,在�目只判韵劾顺敝斜硐值孟嗟背@纾�2020年为止,该公司的股价��11%�恍└惴旱氖谐≈甘私�30%。在这�训氖逼冢⒚卓怂沟某聊怯捎谒姆ú祭锊≈瘟萍永拢唇嚼吹呐颖床≈瘟票怀莆狝T-GAA,以及一系列针对�奔膊〉氖笛樾曰啤�

最�诽奖臼兰椭衅冢懊拦选钡哪晔杖氩挥Φ陀�20亿美元,而且它真正有可能在20世纪20年代�诖丛旄嗍杖耄�50亿美元的收入范围内。为了使这些收入预测符合实际情�琶赖氖兄的壳拔�22亿美元。�钦绶直览胛谀壳暗乃缴希飧┢分圃焐逃Ω檬且桓缘牡猎孕谐抵瘟蒲В阂徊勘坏凸赖陌┲⒕绫�

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其基本思想是开发利用单克隆抗体和小分子药物的最佳性能的疗法。通过这样�孕谐抵荚诶玫タ寺】固宓闹瘟瓢邢Γ眯》肿右┪锏哪芰ι钊氲桨凶橹校笔顾堑暮铣筛蛹途谩�

该公司目前只是在为其抗癌平台的中期试验�福馐且恢直苊馍丶锥问荻脸椒ā5诳拱┲瘟品矫娴男路椒赡芎芸炀突嵛揭槐士晒鄣氖展阂肌1暇梗孕谐抵皇且恢帜芄晃┕狙矍尽4呋烈┪铮阂桓墓露┪镉蜗�

如果你想在这�∩涎罢易畋阋说亩呋林埔┕拘枰谀愕墓何锴宓ブ姓季菔滓恢谩U饧倚⌒秃奔膊≈埔┥探獾搅嗣土遗昊挥腥魏魏玫睦碛伞�

�灾呋鞠垡恢置狥irdapse的兰伯特-伊顿肌无力综合症药物。尽管该药的年价�⒘苏椋獬《郾缏鄱云淠晗鄱罴负腥魏斡跋臁@纾莞霉咀钚碌募径雀拢現irdapse有望在2020年实现1.35亿至1.55亿美元的销售额。�呋恋墓善蹦壳暗某山涣拷020年销售额的两倍,相当于2021年预计销售额的1.5倍。

对于一�埔┥汤此担馐且恢只拿墓兰邸@飞希奔膊」镜哪晗鄱畛�15倍。�坏┦谐』指凑#呋恋墓杉劬突犰O衷冢飧壑抵赡苄枰欢问奔洳拍苄纬桑负ɑ嵩谀骋皇笨谭⑸�(除非�硪恢趾谔於炖嘈偷氖录�)。�缦粘惺苣芰η康耐蹲收呖赡芎芸炀突嵯胍拦赫庵直淮纳锛际novio制药:COVID-19疫苗的角度

�狪NO-4800的试验性COVID-19疫苗,Inovio的股票�恢被F梗霉疽汛臃酪叽葱铝嘶00�脑睿⒋颖榷兔妨执铩じ谴幕00�脑睿圆钩湟呙绲目ⅰD壳暗那榭琁novio预计将在4月份进行一次人体试验,并在�盎ゼ妒荨5浇甑祝霉炯苹峁┐00�糜诟嗟氖匝榛庇猛尽�

任何一家成功开发�Ш桶踩腃OVID-19疫苗的公司,都将拥有一支重要的摇钱�葑钚碌哪P停拦赡苊媪俣啻�110�烙谡庵指叨却拘缘暮兰膊�--也就是说,除非疫苗�У目共《玖品ǔ⒀杆俪�

由于Inovio在撰写本报告时的市值�0亿美元�梢韵嗟卑踩厮担琲no-4800可以将这只小型生物技�方毙凸善�(由于市场严重低估即将到来的催化剂的价值,这种股票被严重低估了)。

尽管如此,inovio并不是唯一一家参与疫苗研发的公司,该公司基于dna的疫苗平台还没有生产�稚桃祷牟贰R惹械耐蹲收卟挥Φ凸烙胍呙缬泄氐难现胤缦铡<灾琁novio是高风险、高回报生物技�钡乃E低甙⒖怂梗毫呙缡菔淙�

Novavax是另一家疫苗开发商,它的股价可能很快就会�险恰U飧步锥蔚纳锛际笔怯腥さ模辛礁紫龋霉炯苹�3月底之前发布�呙绾種anoFlu的顶级数据。由于这些数据可能构成监管文件和随�胧诿涝呙缡谐〉幕。廖抟晌剩绻庑┦匝榻峁锏侥勘辏琋ovavax的股票将会飙升。

其次,Novavax正在准备试验一种自己的COVID-19疫苗�8霉韭浜绕钢埽肥涤谢嵩贑OVID-19疫苗游戏中蜕变为顶级玩家。这是一件�ovavax公司5.33亿美元的市值与这�籴绕谐〉木薮登熬跋啾龋且恢直敌健�

然而,与其疫苗开发公司Inovio一样,Novavax在将疫苗推�》矫婷挥腥〉萌魏纬晒Γ」茉谧罱募复谓际侨绱恕R蹲收呔圆挥Ω糜涤斜人浅惺艿闷嗟耐痘呙绻善薄ovavax的上行潜力是诱人的,但其下行风险同样值得注意。

免�形姆胗商谘斗刖峁┲С郑煌径苑胄畔⒌淖既沸曰啃运斐傻娜魏嗡怀械H魏卧�

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