This company is partnering with a top big pharmaceutical company, and the data has been very solid. Neurocrine Biosciences Inc. (NASDAQ: NBIX) discovers and develops innovative and life-changing pharmaceuticals, in diseases with high unmet medical needs, through its novel research and development platform, focused on neurological and endocrine based diseases and disorders.
The company’s two lead late-stage clinical programs are elagolix, a gonadotropin-releasing hormone antagonist for women’s health that is partnered with AbbVie, and valbenazine, a vesicular monoamine transporter 2 (VMAT2) inhibitor for the treatment of movement disorders. Neurocrine intends to maintain certain commercial rights to its VMAT2 inhibitor for an evolution into a fully integrated pharmaceutical company.
Jefferies recently hosted an investor event with an industry expect to discuss the KINECT 3 data. The expert believes that both valbenazine and a competing company’s drug are superior to current standard of care. Both drugs offer safety advantages, but there is a debate about whether the drugs will have black box warnings, which the current drug does. The analysts feel that valbenazivne is still on track for an NDA filing this year, and the Jefferies team sees a $1 billion potential for the drug, on which many of the doctors they recently surveyed were very constructive.
Jefferies has a $61 price target, and the consensus target is $69.25. The stock closed Tuesday at $42.71.
This is the real up-and-comer in the exchange traded funds business, and it is carving itself out an outstanding share with many specialized ETF offerings. Wisdom Tree Investments Inc. (NASDAQ: WETF) continues to benefit from the movement towards ETFs. This is especially true with the specialized currency hedged products, with the potential for significant uptake in interest rate hedged products.
Wisdom Tree is run by Jonathan Steinberg, the son of famous Wall Street financier Saul Steinberg. He is also married to Maria Bartiromo, who became very famous on CNBC and now works for the Fox Business Network. Steinberg has a long and very distinguished ETF background, going back to the product’s infancy.
Jefferies notes that the move away from commissioned-based mutual funds to a fee-based system for ERISA accounts is a positive for the company and feels financial advisers will shift to index funds and ETFs. The firm also points out that 55% of industry assets are still in commission-based accounts, leaving plenty of room for the fee-based model to grow. Plus, given all the changes, the company now is probably a very solid takeover candidate, as large mutual fund companies may be looking to add ETF product.
WisdomTree investors receive a 3.07% divided. The $13 Jefferies price target compares with the consensus figure at $11.47 and Tuesday’s closing price at $10.40.
Four solid growth stock buys for accounts that are looking for alpha potential. All of them are trading way below 52-week highs and are offering outstanding entry points.