It seems that markets are slowing down and taking a step back after hitting new highs in what has been known as the Trump rally. Although Monday might be slow there are a few stocks in the health care sector that are absolutely screaming higher.
Although the health care sector has been attacked by the U.S. government in the past, it now has one of the brightest outlooks in 2017. Considering that the president aims to expedite the U.S. Food and Drug Administration (FDA) decisions and clear an easier path to drug approval, it seems that biopharma stocks could press even higher.
What has been driving these companies on Monday, are positive results, as well as a critical acquisition. 24/7 Wall St. has compiled a list some of the biggest of those stocks moving. We have included a little color on each, as well as a recent trading history and consensus price target.
TG Therapeutics Inc. (NASDAQ: TGTX) reported positive top-line results from its Phase 3 Genuine clinical trial of TG-1101 (ublituximab) plus ibrutinib in patients with previously treated high-risk chronic lymphocytic leukemia. The study met its primary endpoint, demonstrating a statistically significant improvement in overall response rate compared to ibrutinib alone in both the intent to treat population and treated population.
In addition to overall response rate, observed advantages were seen for the combination in a number of secondary and other efficacy measures, including radiographic complete response rate.
Shares of TG were last seen up nearly 85% at $9.81, with a consensus analyst price target of $21.67 and a 52-week trading range of $4.10 to $11.60.
Shares of Concert Pharmaceuticals Inc. (NASDAQ: CNCE) saw a massive gain to start out the week after it was announced that Vertex Pharmaceuticals Inc. (NYSE: VTRX) will be acquiring Concert’s CTP-656 for the treatment of cystic fibrosis (CF). This agreement is still subject to shareholder approval, although the board of directors is unanimously recommending the transaction.
As part of the agreement, Vertex will pay Concert $160 million in cash for all worldwide development and commercialization rights to CTP-656. If CTP-656 is approved as part of a combination regimen to treat CF, Concert could receive up to an additional $90 million in milestones based on regulatory approval in the United States and reimbursement in the United Kingdom, Germany or France.
Keep in mind that after the shares jumped on Monday, Concert had a total market cap of roughly $367 million.
Roger Tung, Ph.D., president and CEO of Concert, commented:
With Vertex’s clinical and commercial expertise in CF, this agreement provides the optimal pathway to rapidly advance the development of CTP-656 for the benefit of cystic fibrosis patients. The financial strength provided to Concert by this agreement will allow us to advance CTP-543 into pivotal testing and broaden our proprietary development pipeline.
Concert shares were up nearly 70% to $16.30 on Monday. The 52-week range is $7.11 to $18.48, and the consensus price target is $22.00.
Vertex was trading flat at $90.34, with a consensus price target of $99.24 and a 52-week range of $71.46 to $103.73.
Dextera Surgical Inc. (NASDAQ: DXTR) watched its shares climb early on Monday after the firm reported that Marco Nardini, M.D., from James Cook University Hospital in Middlesbrough, United Kingdom, presented the latest data on the results of 82 patients undergoing microlobectomy. Ultimately Dextera’s Microcutter 5/80 demonstrated that for microlobectomy procedures, the median hospital stay was reduced by at least two days when compared to traditional open lobectomy procedures, with over 20% of patients going home the day after surgery.
Dr. Nardini commented:
The Microlobectomy procedure, enabled by the MicroCutter 5/80 surgical stapler, due to the slim profile of the five-millimeter diameter with 80 degrees of articulation, reduces postoperative pain and complications compared to traditional open procedures and overall, improves a patient’s recovery after a major lung resection. These data further support what surgeons around the world are experiencing when performing the Microlobectomy – that the less invasive nature of this procedure shortens hospital stays when compared to a traditional open lobectomy, with 20.7% of patients able to return home within 24 hours.
Shares of Dextera were last seen up about 50% at $1.70. The consensus price target is $4.25. The 52-week range is $0.90 to $2.94.