Long-time aggressive investors know that biotechnology stocks can offer huge upside and also can get absolutely hammered, and in some cases even 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 industry. 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 two recent Wedbush research reports, the focus is on companies that not only have data that could prove to be huge, but that have both 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 Outperform at Wedbush, are only appropriate for very aggressive portfolios.
This medical device company’s products help to deal with one of the fastest growing medical problems in the country. Insulet Corp. (NASDAQ: PODD) develops, manufactures, and sells insulin infusion systems for people with insulin-dependent diabetes in the United States. It also sells blood glucose testing supplies, insulin pumps, pump supplies, pharmaceuticals and other products for the management and treatment of diabetes.
The company offers OmniPod Insulin Management System, which consists of the OmniPod, an easy-to-use continuous insulin delivery system for people with insulin-dependent diabetes, and personal diabetes manager, a handheld wireless device. The company sells and markets its OmniPod System through a combination of direct sales representatives and independent distributors.
In a new research note the Wedbush analysts noted:
We remain highly encouraged with the rapid adoption of Neulasta Onpro Kit and would expect the success generated from this product to continue capturing the interest of other potential biopharma companies to partner with Insulet in order to deliver other drugs through its Omnipod technology. The drug delivery segment is expected to account for 18% of Insulet’s total revenue this year and represent its fastest growing business unit. While we expect growth to slowdown as penetration of Neulasta begins to level off in 2017, Insulet management previously has highlighted that it is working with 6 other pharmaceutical companies to develop customized drug delivery products that can leverage the Omnipod technology and reaccelerate the drug delivery franchise down the road.