Cancer fighting drugs and therapy companies are poised to profit from long term aging trends of the population as well as the rise of cancer in general. There are now companies that are trying to personalize treatments with gene therapy.
Here are Canadian and US companies that are producing innovative methods to control and cure cancer.
Oncolytics Biotech (ONC-T)
A company that specializes in treating solid tutors. There is still a long way to go but the product has huge potential.
The technicals do not look good at all – with a decline lasting over the past two months. He would not touch this one at all. A 50 day moving average would be a buy signal if it can trade back above it.
Concordia International Corp (CXR-T)
The company focuses on treating ADHD, cancer and asthma. They went through a restructuring, along with many other Canadian drug manufacturers.
Likes turnarounds, but it’s not ready. Want to see two things: 1) the stock hitting a 52-week high, and 2) the numbers moving in the right direction. Don’t do anything until then. Odds are this is going to zero.
Medx Health Corp. (MDX-X)
A company that has recently changed their President and CEO. It is a medical device manufacturer that helps diagnose skin cancer, and they are now entering Spanish-speaking countries.
Brazilian order? He owns warrants and his wife works as a consultant for them. They have orders for 500 units for a melanoma testing product. The delivery is subject to approval by authorities in Brazil. This could lead to hardware sales by June and revenues that begin to show up in Q4. The company thinks…
Amgen Inc. (AMGN-Q)
A developer and manufacturer of biotechnology based therapy. They have several cancer fighting drugs in their repertoire including a new colorectal cancer drug. They have surpassed earning estimates in the last year and pays a dividend of 3%.
Stockchase Research Editor: Michael O'Reilly AMGN just released earnings and the 12% increase in revenues and 5% increase in EPS were likely held back due to government mandates to focus health spending towards COVID-19 projects. The company is now benefitting from the release of new arthritis and metastatic colorectal cancer treatments. They also signed a…
Celgene Corp (CELG-Q)
An American biotech company that specializes in cancer and inflammatory disorder therapy. They are starting the process of merging with BMY-N. A good cash flow generator.
(A Top Pick Dec 03/18, Up 47%) Celgene had made a number of mis-steps, including management applying for multiple FDA approvals. One thing he really liked about the acquisition was the price it was bought. The acquisition by BMY helped them diversify and it seems to be going well.
Bristol Myers Squibb (BMY-N)
The company has several blockbuster immunotherapy drugs in their pipeline, as well as some chemotherapy products for leukaemia. The company has announced plans to acquire Celgene that will add several other high profile drugs.
It was up nearly 4% today during JPMorgan's healthcare conference. BMY delivered good news. Management announced strong early revenue goals for new products, including three new drugs that could hit $4 billion in sales this decade. Their strong pipeline of drugs was bulked by buying Celgene and MyoKardia. They also announced a bullish free cash-flow…
Pfizer Inc (PFE-N)
One of the largest pharmaceutical companies in the world. It is currently in its seasonal weakness which is mid-October. It has enjoyed long term support levels and is consolidating well.
An area that's started to act better recently. Well managed. But doesn't understand what the catalysts are. Doesn't find it compelling. Consider the picks and shovels instead, like Agilent or Danaher, who benefit from growth in everyone's pipeline.
AbbVie Inc. (ABBV-N)
Their blood cancer drug is projected to be one of the top best selling drugs in the world in the near future. The company also has other oncology drugs such as a top-selling immunology drug called Humira. They are currently in the process of acquiring Allergan.
All big pharmas have been treading water. Patent legislation left them with a leaky boat. He's gravitated toward the bio-pharmas. His favourite in that space is AbbVie, as it's good on fundamentals and financials, inexpensive, very fine dividend, great cashflow generator.
Johnson & Johnson (JNJ-N)
A global medical devices, pharmaceutical and consumer goods company. Their drugs are doing well and the company remains very profitable but volatile. They are going through a litigation for opiates and a ruling against their anti-psychotic drug.
(A Top Pick Dec 16/19, Up 16%) Has gained some altitude. There has been no shortage of negative headlines over the years. Pharmaceuticals is a litigious industry in general. A well diversified company. A slower growth pharma company. However, it is a wonderful company looking at durability. Valuation is just above their buy price of…
Novartis AG (NVS-N)
One of the world’s largest pharmaceutical company based out of Switzerland. They sold off their ophthalmology business and are refocusing on generic drugs. The company also has many drugs that are close to approval that could become blockbuster drugs.
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)
GlaxoSmithKline PLC (GSK-N)
A British pharma company that is refocusing away from consumer products to pharmaceuticals. The company is doing well with 5% dividend. However, there is a hard brexit risk.
1-year outlook They've had a very good year like all pharmas, even in an election year. Pays a great yield and trades at a low multiple. Driving this are their COVID-19 vaccine efforts. They recently did a deal that puts them in MNRA which allows the fast-tracking of developing vaccines. This whole sector will continue…
Astrazeneca P L C (AZN-N)
A well diversified and global pharmaceutical company that specializes in oncology. They pay a great dividend and are focusing on less price-sensitive areas.
Allan Tong’s Discover Picks The AZN stock currently trades at a 64x PE and pays a not-bad 2.69% dividend yield. It's trending $7 below its $59.73 price target, and has declined slightly to June levels. However, its PE has tumbled to levels last seen in December 2019. Three analysts rate it a strong buy, one…
Gilead Sciences Inc. (GILD-Q)
An American biopharmaceutical company. They consolidated for the last year and a half. The company is doing well, with a 4% yield. They have a history of blockbuster drugs with Hepatitis C and HIV.
Regeneron Pharmaceuticals Inc (REGN-Q)
A biotech company with good free cash flow. They have some drugs for niche markets. Their earnings don’t come from one specific sector of their activity.
Buy it under $500. It hasn't been in the news lately. They have a great Covid drug, but aren't making enough of it.
CRISPR Therapeutics AG (CRSP-Q)
A smaller company that is developing gene medications. They have a gene-editing tool that has the potential to cure several diseases, including some cancers.
A small company that develops transformative gene medications. They are a small fish in a big sea. A recent transaction with a pharma company allows them to scale out their product, but it is still early. (Analysts’ price target is $58.05)
Varian Medical Systems (VAR-N)
The company specializes in radiation therapy equipment to treat cancer. The trend for cancer radiation therapy is still positive and analysts think there will be an up-tick in sales.
(A Top Pick Aug 29/14. Up 2.34%.) Radiation therapy equipment for treating cancer. Have been affected a little by foreign exchange rates. These are big ticket purchases, so she expects purchases have been delayed, but she has seen this come back. On the emerging-market side, it is a little bit more challenging. Still thinks the…
Merck & Company (MRK-N)
Their main drugs are for treating diabetes and oncology. They have a great pipeline of new drugs that are coming up and will drive revenues over the long term. They pay a dividend of 2.65%
(A Top Pick Jan 30/20, Down 1%) Still likes. Continues to buy. Discount to other big pharma. Cancer drugs are very high margin. Pandemic has spurred pharma sales. Will benefit as life returns to normal. Yield is 3.1%.
Eli Lilly & Co. (LLY-N)
A global pharmaceutical company that recently made an acquisition in oncology. It has been one of the best growth companies with a rate of 10% EPS.
He owns a basket. He owns this one for their oncology division. He has not owned it for anything COVID-related. Sometimes it is better to buy a basket of these companies.
Abbott Labs (ABT-N)
A diversified healthcare company. It sells generic drugs to emerging markets. They also have medical devices and are diversified globally. A very safe play, especially considering that they have raised dividends for 47 years straight. Yield of 1.50%.
ABT vs. JNJ Similar businesses. You absolutely need exposure to healthcare. He holds JNJ for the dividend aristocrat qualities. ABT has been impressive. Testing platform has been phenomenal and will continue to ramp up. It's a great addition to portfolios at these levels. Tough choice between the two, but ABT probably has more immediate upside.