Long-time aggressive investors know that biotechnology stocks can offer huge upside and also can get absolutely hammered, and in some cases go out of business. 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 rhetoric from politicians in an election year over drug pricing, and while there is always an argument for lower prices, taking down an entire sector is extreme.
In separate recent research reports, analysts at Wedbush, Oppenheimer and Stifel focus on four companies that not only have data that could prove to be huge, but have been absolutely hammered over the past year, offering aggressive accounts the best entry points in some time. These stocks are very speculative, and though rated Buy, they are only appropriate for very aggressive portfolios.
This top biotech has been absolutely eviscerated since printing highs last summer. Cempra Inc. (NASDAQ: CEMP) is a clinical-stage pharmaceutical company focused on developing antibiotics to meet critical medical needs in the treatment of bacterial infectious diseases. Cempra’s two lead product candidates are currently in advanced clinical development. Solithromycin (CEM-101) has successfully completed two Phase 3 clinical trials for community-acquired bacterial pneumonia, and new drug applications for the intravenous and oral capsule formulations have been submitted to the FDA.
Solithromycin is licensed to company’s strategic commercial partner Toyama Chemical, a subsidiary of Fujifilm Holdings, for certain exclusive rights in Japan. Solithromycin is also in a Phase 3 clinical trial for uncomplicated urogenital urethritis caused by Neisseria gonorrhoeae or chlamydia.
The company recently released very positive results for a Phase 2, multi-center, randomized, double-blind study that was conducted by Toyama to evaluate the efficacy, safety and pharmacokinetics of solithromycin in Japanese patients. The Stifel analysts view the release of oral solithromycin data demonstrating numerically superior efficacy to levofloxacin in the Phase 2 study conducted by Toyama as a very positive result.
The Stifel price target for the stock is an incredible $51, while the Thomson/First Call consensus target is $38.91. The stock closed Monday at $18.67.
This small biotech has taken investors on a roller-coaster ride over the past two years but could be ready for a big move higher. Novavax Inc. (NASDAQ: NVAX) is a clinical-stage vaccine company committed to delivering novel products to prevent a broad range of infectious diseases. Its recombinant nanoparticles and Matrix-M adjuvant technology are the foundation for ground-breaking innovation that improves global health through safe and effective vaccines.
Since 2011, Novavax has been developing influenza vaccines as part of a project that has been funded under contract with the U.S. Department of Health and Human Services, Biomedical Advanced Research and Development Authority (BARDA). The agency’s scope has been to develop seasonal and pandemic influenza vaccine candidates, based on Novavax’s proprietary virus-like particle (VLP) technology.