It's time to trade some biotechs.
Biotech stocks can present interesting, and very lucrative, investment opportunities. Positive trial results or key regulatory approvals can cause share prices to more than double overnight. However, buyers beware: the opposite is also true and on bad news, these rewards can disappear just as quickly. To minimize this risk, we specifically searched for stocks with a high degree of confidence from the Street.
In this case, we used our Trending Stocks tool to filter for best-rated stocks in the last week, regardless of market capitalization. All four stocks below boast a strong buy analyst consensus rating. This is based on data from only the last three months. We can also track the average analyst price target as a nifty indicator of how far the stock can move in the coming months.
Medical device hot-stock ViewRay (VRAY) is poised for big growth. The company provides the first FDA-cleared MR image-guided radiation therapy for cancer patients. What makes the MRIdian Linac system unique is that it enables clinicians to visualize the tumor and nearby soft tissue and organs in real-time.
Most excitingly, MRIdian is the first and only MRI-guided radiation therapy system to receive Shonin approval in Japan, the world's third largest market for radiation oncology. This "is an important milestone in the system's global adoption" CEO Chris A. Raanes wrote in the statement on March 12.
"We continue to be favorably disposed to VRAY, and believe strong adoption trends are already taking place, which is most easily evidenced by the company's growing backlog" states four-star B.Riley FBR analyst Andrew D'Silva. He sees management hitting its targeted 2018 top line guidance of revenue between $80 million to $90 million and reiterated his buy rating on March 12.
Based on historical adoption curves, D'Silva "believes that new technologies in radiation oncology that improve patient outcomes are well positioned to be adopted at a rapid clip."
Overall, this stock has 100% support from the Street right now. In the last three months, five analysts have published buy ratings on ViewRay. They see shares spiking 60% from the current share price.
This UK-based stock is buzzing right now. Adaptimmune (ADAP) is working to transform cancer treatment with its novel immunotherapies. Shares soared 20% earlier this week on very promising early results of its SPEAR T-cell therapy. One case saw a patient's tumor in his shoulder shrink by nearly half over four weeks.
"Results in a 2nd solid tumor strengthens our conviction that our pipeline of unique TCRs will be capable of addressing multiple solid tumors," states Adaptimmune's chief medical officer Rafael Amado.
Top Raymond James analyst Reni Benjamin is certainly feeling the heat. "We are maintaining our Outperform rating and increasing our price target to $20 (previously was $11) for ADAP given our increasing confidence in the company's TCR franchise," he writes on March 16.
For Benjamin, these "encouraging" results indicate that "high-level responses can be achieved by a TCR product in solid tumors and that it could translate into improved survival outcomes." Plus with a marquee partner like GlaxoSmithKline (GSK) and a strong cash position of $188 million (pro forma), Adaptimmune has a lot going for it right now.
In the last week, our data shows that three analysts have published buy ratings on Adaptimmune. These analysts see the stock hitting $17.50 (58% upside potential from the current share price).
Voyager Therapeutics Inc.
Voyager Therapeutics (VYGR) is developing intriguing gene therapies for neurological diseases. Case in point: the company has just signed a deal with AbbVie (ABBV) to develop a revolutionary Alzheimer's treatment. The deal includes a $69 million upfront payment to Voyager and more than $1 billion in potential milestone payments.
AbbVie, the world's fifth largest biotech, will provide antibodies targeted against tau. This is one of the two main proteins implicated in Alzheimer's. Meanwhile Voyager will test encoding different antibodies into the DNA of an adeno-associated virus (AAV), a delivery vehicle used to shuttle DNA into cells.
The upshot of this is that a one-time injection of Voyager's gene therapy could potentially lead to a long-lasting production of anti-tau antibodies in the brain.
"While this collaboration will play out over the longer term, we believe it lends further validation to VYGR's neuroscience-focused gene therapy platform," applauds Canaccord Genuity's Sumant Kulkarni. He has a $35 price target on Voyager (60% upside potential).
In total, this stock has scored six buy ratings in the last three months, vs just one hold rating. From the current share price, analysts are projecting big growth of over 66%.
Canadian-based biopharma Aquinox (AQXP) is targeting the increasingly crowded pain management space. Lead candidate rosiptor is under development for the treatment of Bladder Pain Syndrome (BPS) / Interstitial Cystitis (IC) and other inflammatory diseases.
Now a major milestone is fast approaching, which could potentially send shares soaring. Top-line results for rosiptor for BPS/ IC are due in the third quarter. Hopes are high for approval based on Phase 2 data demonstrating an impact on both pain symptoms and urinary frequency.
"We believe the company is well-positioned to bring an important new therapy to the market for treating interstitial cystitis/bladder pain syndrome (IC/BPS) in rosiptor and, if clinical trials are successful, for treating chronic prostatitis/chronic pelvic pain syndrome (CP/CPPS) also," cheers top Cantor Fitzgerald analyst William Tanner.
And successful results will pave the way for further expansion into new indications. "Depending on the compound's safety and efficacy profiles, we believe rosiptor could be a pipeline in a product, if approved," Tanner writes in his investor report.
Our data reveals that in the last three months, Aquinox has received four back-to-back buy ratings from the Street. These analysts have an average price target on the stock of $25, indicating huge upside potential of over 70%.