The 2020 year is practically halfway done, and this has really been the year of the biotech. Although the iShares Nasdaq Biotechnology ETF (NASDAQ: IBB) is only up about 6% year to date, there have been some breakout companies as a result of the coronavirus pandemic.
Almost any biotech attempting to do anything in regards to COVID-19 has seen a boost, but there have been other big winners not related to the pandemic. Still more are to come in the remainder of 2020.
Biotechnology companies offer big risk, but big reward as well. These are seen as some of the more speculative companies in the market because a single clinical trial could either be a huge sunk cost or the next blockbuster drug.
Win, lose or draw, Canaccord Genuity recently released a report detailing some of the biggest biotech catalysts coming out over these next six months, with a particular emphasis on the ones that can win.
Acadia Pharmaceuticals Inc. (NASDAQ: ACAD) has Phase 3 data due out in the third quarter for pimavanserin in major depressive disorder (MDD). The company also plans to file its supplemental new drug application (sNDA) in dementia-related psychosis in the summer, with potential approval in late 2020. Canaccord Genuity has a Buy rating with a $56 price target, implying upside of 22% from the most recent closing price of $45.85.
Biohaven Pharmaceutical Holding Co Ltd. (NYSE: BHVN) could file an sNDA for migraine prevention in 2020. The firm also has seen a solid start to Nurtec ODT for the acute treatment of migraines. Moreover, Troriluzole Phase 2/3 data for obsessive compulsive disorder is expected in the third quarter of this year. Canaccord Genuity has a Buy rating with an $80 price target, implying upside of 21% from the most recent closing price of $66.00.
Biogen Inc. (NASDAQ: BIIB) anticipates a lower court decision regarding the generic challenge on Tecfidera to come soon. The company expects to complete its aducanumab filing in the third quarter. Note that aducanumab is a treatment for Alzheimer’s disease, which is considered a very lucrative field. Canaccord Genuity has a Buy rating with a $350 price target, implying upside of 25% from the most recent closing price of $279.27.
BioXcel Therapeutics Inc. (NASDAQ: BTAI) is looking forward to July for data from its Serenity Phase 3 study in agitation in schizophrenia and bipolar disorder. Separately, the Tranquility Phase 1b/2 regarding agitation in dementia is expecting data in “mid-2020” so should be anytime now. Canaccord Genuity has a Buy rating with a $71 price target, implying upside of 49% from the most recent closing price of $47.57.
Cortexyme Inc. (NASDAQ: CRTX) is scheduled to report its interim analysis from its Phase 2/3 study for atuzaginstat (COR288) in the treatment of Alzheimer’s. The readout is after 100 patients in each of three arms have completed six months of treatment. Canaccord Genuity has a Buy rating with a $70 price target, implying upside of over 55% from the most recent closing price of $44.97.
Intra-Cellular Therapies Inc. (NASDAQ: ITCI) expects Phase 3 data of lumateperone in bipolar depression in “mid-2020.” The company also has traction from its caplyta launch, for the treatment of schizophrenia. Canaccord Genuity has a Buy rating with a $70 price target, implying upside of 247% from the most recent closing price of $20.15.
Neurocrine Biosciences Inc. (NASDAQ: NBIX) sales from ingrezza (treatment of tardive dyskinesia) remain a key driver for the company. Also the launch of its Parkinson’s treatment, ongentys, is set for this year. Canaccord Genuity has a Buy rating with a $134 price target, implying upside of nearly 17% from the most recent closing price of $114.82.
Sage Therapeutics Inc. (NASDAQ: SAGE) expects to report its Phase 3 Shoreline study for MDD later in the year. Canaccord Genuity has a Buy rating with an $80 price target, implying upside of 121% from the most recent closing price of $36.21.
Zynerba Pharmaceuticals Inc. (NASDAQ: ZYNE) is set to report data from its Phase 2 study in Fragile X syndrome in late June. Canaccord Genuity has a Buy rating with an $18 price target, implying upside of 271% from the most recent closing price of $4.85.
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