Needless to say, the biotech world has had a very difficult year. Even the biggest and the best companies, many of which trade cheaper than big pharmaceutical companies, have suffered as investors have fled the sector. Much of the blame for the poor showing is the very shrill election-year rhetoric from politicians over drug pricing, and while there is always an argument for lower prices, taking down an entire sector is extreme.
The XBI biotech index is up 10% in September, and some on Wall Street contend that the political chatter and overhang worry is going away, despite the ongoing scrutiny at Mylan, where the CEO took a beating from a congressional panel Wednesday.
A series of research reports from Wedbush focus on upcoming catalysts for stocks in the firm’s coverage universe. The three featured here are rated Outperform and have at least 100% potential upside to the posted price targets. These companies also presented at last month’s Wedbush PacGrow Healthcare Conference.
This company has big phase 3 enrollment and results coming over the next year. Aimmune Therapeutics Inc. (NASDAQ: AIMT) is a clinical-stage biopharmaceutical company engaged in the development of desensitization treatments for peanut and other food allergies. The company’s Characterized Oral Desensitization Immunotherapy includes AR101, a product in Phase 3 registration trial for the treatment of peanut allergy in children and adults.
The Wedbush team note that the complete enrollment for the Phase 3 PALISADE trial and the data from the trial will be forthcoming. Needless to say, a positive result would be huge as peanut and other food allergy issues can be extremely dangerous. The enrollment should be completed this year and the results in the second half of 2017.
The Wedbush analysts also noted this in the report:
We believe the study is likely to ease any regulatory concerns while aiding in commercial adoption of AR101. RAMSES is a double blind, placebo controlled trial, slated to enroll ~400 patients from the U.S. Unlike Aimmune’s Phase 2 and ongoing PALISADE trials, RAMSES will not use an oral food challenge for entry but will select patients based on criteria used in real-world clinical practice, including a medical history of IgE-mediated reactions to peanuts, skin-prick test and analyses of peanut specific immunological markers.
The Wedbush price target for the stock is a gigantic $42, and the Wall Street consensus target is $37.75. The stock closed most recently at $16.23 per share.
This stock has been on a roller-coaster for years and is now trading where it was in 2013. Pacira Pharmaceuticals Inc. (NASDAQ: PCRX) is a specialty pharmaceutical company that develops, commercializes and manufactures proprietary pharmaceutical products primarily for use in hospitals and ambulatory surgery centers in the United States. The company develops pharmaceutical products based on its proprietary DepoFoam drug delivery technology. Its lead product includes, Exparel, a liposome injection of bupivacaine, an amide-type anesthetic indicated for infiltration into the surgical site to produce postsurgical analgesia.