The medical space has been a hot sector these past few years, and have widely outperformed the market. These sectors are defensive as they are not tied to an economic cycle. Furthermore, medical, biotech and gene-editing firms will profit from the aging population and growing need for these services and drugs.
Recently, the sector has pulled back due to promises by the US government to lower drug prices and further regulate the sector. However, it seems analysts are still bullish for the sector. The next election cycle will be a key turning point for these stocks.
👩⚕️ Biotechnology & Medical Research
Resverlogix Corp. (RVX-T)
A clinical biotechnology company that develops epigenetic drugs that treats neurodegenerative diseases, diabetes and other chronic illnesses. They are currently paying down debt.
(Market Call Minute.)Reversing of bad cholesterol in clinical studies. A little early for him but has potential. Speculative.
Spectral Med Inc (EDT-T)
A multinational company that specializes in endotoxin activity assay (EAA) diagnostic and therapy services. The EAA diagnostic product is their main revenue driver.
There is nothing more powerful than a base breakout, and this had one in February of this year. This one is on a trend line right now and there is absolutely nothing wrong with the chart.
Microbix Biosystems (MBX-T)
A biomedical testing company that saw earnings up 40% last quarter. They are increasing capacity and is trading at a reasonable PE. Robert McWhirter choses it as a top pick in May.
They're involved in Covid testing. Sales should more than double by Sept. 2021 year end to $25 million with a further 32% growth in sales of 2022 to $34 million. He expects Covid testing will continue to be common for employees and travellers. This stock could double from current levels. Other analysts target even higher,…
Reliq Health Techniques (RHT-X)
A software as a service solution company for remote patient monitoring, telemedicine and collaborative care. The stock experienced a pullback but it is starting to recover due to their long-term potential.
It has a great product and is coming back after stubbing its toe three years ago. The market now likes it. Good opportunity for the company going forward, because telemedicine is in vogue and the US government will pay for results-based compensation.
Neptune Wellness Solutions Inc. (NEPT-T)
A nutrition products company that focuses on unique nutrition solutions with specialty ingredients. They are shifting their focus from krill oil extraction to cannabis oil.
Doesn't know this well. They're in the cannabis sector, more in the extraction market, an area that will continue to expand. He's watching their progress in earnings.
CRISPR Therapeutics AG (CRSP-Q)
A small cap company that develops gene medication. They recently closed a deal with a pharma company that will help scale their products.
Regeneron Pharmaceuticals Inc (REGN-Q)
A biotech company. That has several core products generating good free cash flow. Their partners include Sanofi to treat severe asthma. Paul MacDonald chose it as a Top Pick in July.
It confuses him. They produce great drugs and are run by a fine CEO, but they aren't making a lot of money on their Covid cocktail. The stock has been struggling, but he would not sell.
First Trust Biotechnology Index Fund (FBT-N)
An investment fund that corresponds to the NYSE Arca Biotechnology IndexSM. It tracks the performance of small, mid and large cap companies in the biotech industry.
(A Top Pick May 8/17. Up 11.02%.) The period of seasonal strength for this is usually early May right through until the middle of July. We have reached the point where seasonality no longer applies. Now is a good time to take the money off the table.
Gilead Sciences Inc. (GILD-Q)
A pharmaceutical company that produces high priced drugs for hepatitis C and HIV. It trades at less than 9 times earnings with a 4% yield.
It is a healthcare name recently valued by investors. She likes to see a more visible pipeline in companies she buys. But this is a reasonable investment in this space.
Pfizer Inc (PFE-N)
An American pharmaceutical corporation that produces a variety of well known drugs. The seasonal weakness is in mid-October. It is currently consolidating and is sure to appreciate in the near future.
Their vaccine has been a boon to their revenues, which jumped 30% in a one year, but this is likely a round trip. Also, margins on this vaccine are fairly low. The vaccine offers some benefit to PFE, but it's limited. Look elsewhere.
Biogen IDEC Inc. (BIIB-Q)
A multinational biotechnology company that treats neurodegenerative diseases using innovative techniques. This was dragged down along with the whole sector. They experienced a pullback after they closed an Alzheimer study that caught the market by surprise.
Very high risk, very high reward. Seeing competition on its core drugs. Its Alzheimer's drug didn't get a great reception. Somewhere around June 7 the regulator will rule on this drug. Could be impacted 30% up or 50% down. Not for him.
Bristol Myers Squibb (BMY-N)
A large cap American pharma company that produces prescription drugs for several therapeutic areas. Their latest drugs haven’t done as well as hoped. They are currently in discussion to merge with CELG-Q.
Novartis AG (NVS-N)
One of the largest multinational Swiss pharmaceutical company. They are refocusing on generic drugs and have sold their ophthalmology business.
A joint pharmaceutical company that has two businesses: branded and generic. The generic side will be very interesting post-covid when countries will be indebted and must provide cost-effective health care. The product pipeline looks reasonable. 6% dividend growth in the past 10 years. A safe steady growth opportunity. (Analysts’ price target is $102.00)
Amgen Inc. (AMGN-Q)
A biopharmaceutical company that is the world’s largest independent biotech firm. It is considered the preeminent biotech companies with some good drugs. It trades at a 11x earning which is considered reasonable.
It has been under-performing the overall market. Biotechs don't do well at this point seasonally. Its seasonal period starts in June and the trade could setup quite well. Don't look at it at this time.
Mylan Inc (MYL-Q)
A global generic and specialty pharmaceuticals company. This is the company that produces Epi Pens. Analysts are uncertain since there is a lot of headwinds on pricing and government intervention.
TEVA-N vs. MYL-Q. He does not like either at these prices. They are both generics manufacturers. There are lots of headwinds on pricing in these categories. We have had a lot of noise on pricing of pharmaceuticals. The FDA is going to alleviate the delays on getting new drugs to market. He wants to be…
Eli Lilly & Co. (LLY-N)
A global pharma company that recently made an acquisition in oncology. They recently had one of their popular drugs withdrawn. They outperformed in 2018 Q4 and they have potential blockbuster diabetes and heart disease drugs in the pipeline.
A fave of his, up 19% YTD. Last month they delivered a terrific quarter and strong phase 2 data on their Alzheimer's drug, a possible game-changer. They also have a Covid antibody treatment that's already selling well. Most recentlty they delivered good phase 3 trial results on their cholesterol, weighr-loss drug for diabetes.
Medical Equipment, Supplies & Distribution
Medtronic Inc (MDT-N)
The maker of the first pacemaker and several other similar devices. They are starting to enter emerging markets such as India and Bangladesh where there is a need for these devices. Michael Decter chose this as a top pick on October 2, 2019.
Allan Tong’s Discover Picks Up 14.68% since August 18, 2020 MDT was trading at $101. It has since climbed as high as $122.15, but now lockdowns are delaying elective surgeries, and the stock is starting to wobble around $117. Keep an eye on this, because continuing lockdowns and a general market pullback would make this…
Baxter International Inc (BAX-N)
A Fortune 500 health care company. The dividend is very high though current valuations are quite rich. They are focusing on new product developments that generates good growth.
Top healthcare pick. Valuation is rich, though the dividend is decent. He will suggest a better stock in Top Picks.
Abbott Labs (ABT-N)
A multinational diversified healthcare company. It hasn’t been impacted by the focus on drug pricing. It sells generic dugs to emerging markets. They also have a great track record of dividend increases with a yield of 1.5%
They report Tuesday. They've done great work with their Covid test that they will likely hit it out of the park.
Becton Dickinson (BDX-N)
A medtech company that manufactures medical devices, instrument systems and reagents. It is in medical supplies, not drugs, and supplies primarily to hospitals. A product under FDA review has made the price pull back. They have a good record of dividend appreciation and have opportunities ahead. Barry Schwartz chose it as a top pick on June 24, 2019.
He has no plans to sell it. They were very strong last year. It has been a little slow this year. You are not going to have explosive growth every single year. You might want to watch it and buy it if it dips coming out of the pandemic.
Stryker Corp. (SYK-N)
A Fortune 500 medtech firm. They are a leader in robotic surgery and have great organic growth. It is as defensive name since it is not tied to the economic cycle.
They produce medical devices for hips, knees, hands and ankles. Elective surgeries are coming back after pandemic lockdowns. SYK's medical products reduce medical stays and drug use, which benefits American hospitals and patients. Again demographics are another tailwind. He expects good growth. SYK holds a lot of fresh cash to pay debt and the dividend.…
Alpha Pro Tech (APT-A)
A company that has a building supplies business and hospital protection business. Whenever there is a pandemic scare, this company takes off. If there is another scare, this will do well.
This is funny in terms of a long-term outlook. They have a buildings supplies business, and the hospital protection business. Whenever there is a pandemic in the works, this company takes off. It has been moving around $4 per share, and thinks it could go a fair bit higher. He would like to get $6+…