Investors and speculators often flock to the world biotech for emerging drugs of the future. It is no secret at all that the biotech sector is full of all sorts of risks, making and taking away the fortunes of many investors and speculators for the better part of what is going to three decades now.
All caveats aside, analysts, investors, speculators, and even short sellers all focus on upcoming FDA events and trial data with a close eye. 24/7 Wall St. has focused on four upcoming events covering the biotech sector.
We have used research notes to highlight the upcoming positive expectations, but do not ignore this warning – there is absolutely no assurance that the outcomes will be positive. It often happens that the FDA also does not go along with the market sentiment, often for reasons that seem hard to understand. The recent pullback from highs in two of these should also only act to magnify the theme that this sector is full of risks.
Amicus Therapeutics Inc. (NASDAQ: FOLD) was trading significantly higher on Thursday, a day that was rough for the rest of the market. This was a strong performer in the last 60 days, and a recent report from the boutique Leerink greatly upgraded their chances of the success chances of Amigal in the European Union and in the United States. At $3.80 now, it was just on July 1 that Leerink raised its rating to Outperform and the same day brought an upgrade to Buy at Janney Capital Markets. The consensus price target is up at $6.00, implying upside of more than 50%. Amicus has traded in a 52-week range of $1.77 to $4.31.
Halozyme Therapeutics, Inc. (NASDAQ: HALO) has an upcoming FDA advisory committee meeting on July 31 with Baxter. While this is not an approval meeting, it is expected to show how FDA guidance will come out on Halozyme’s application for its human immune globulin infusion with recombinant human hyaluronidase. J.P. Morgan recently initiated coverage of Halozyme with an Overweight rating, and a $13 price target. The consensus price target is closer to $14. With a price of $8.80 currently, the stock was around $9.30 ahead of the latest analyst call. Also, Halozyme’s share price volatility has been extreme as the 52-week range is $6.51 to $18.18.
Intercept Pharmaceuticals, Inc. (NASDAQ: ICPT) has been major performer followed by a significant sell-off. , up nearly tenfold from its 52-week low. The company recently indicated that its FLINT study data will likely be released in August, after having first expecting the data in July. Many biotech analysts expect this to go much higher, as the Thomson Reuters consensus estimate is up above $400 versus a $212 price currently. Just in recent days came news that Deutsche Bank issued a new Buy rating and assigned a $395 price target for a gain of more than 85% from now. This could be a very positive catalyst for the stock, but you also know what that means if there is disappointing news — wouldn’t be pretty, not at all.
Repros Therapeutics Inc. (NASDAQ: RPRX) was just reiterated as Buy at Merrill Lynch, with the firm suggesting that it has several upcoming catalysts that could boost shares. The analyst report shows that Merrill Lynch’s expects key data from Repros’ two Phase 3 head-to-head trials, 305 and 304, is starting in September. Also, the FDA is hosting a testosterone replacement therapy event highlighting the risk in September. The brokerage firm said that it expect a partnership announcement will be made after the FDA approval. What is amazing is that Merrill Lynch is calling for this stock to double. The recent price of $15.87 is compared to Merrill Lynch’s price objective of $32.00. The consensus price target is $31.50 – also close to a double.
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