Top Biotech and Pharma Stocks to Bet on Cancer Cure & Control
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%.
Granddaddy of biotech. Even better than it used to be. Very deep bench of drugs. New acquisition will add growth on top of already-decent growth. Very strong financials. Income opportunity, stability, and some growth not yet fully priced in. Yield is 3.14%, well covered at 42%, increased by 11% average annually over 5 years. (Analysts’…
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.
In fine shape, can own it for the next 6-9 months of volatility. The way the market is, owning healthcare is safer than owning other things. Very defensive. He owns JNJ and NVO, but any of these companies will be fine.
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.
It reports Tuesday. The street doesn't like it, because of the performance of PFE's Covid vaccines. He disagrees--there's much more to Pfizer than the street thinks.
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.
It reports Thursday. Recently, it's gotten negative press over the high-handed way ABBV protected the price of Humira, their big drug that has finally lost patent protection. Will it crush gross margins? Does management have enough to offset that loss? If management addresses this issue, shares could go down.
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 Oct 20/22, Up 0.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with JNJ has triggered its stop at $166. To remain disciplined, we recommend covering the position at this time.
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.
Made big money by selling off one division. Decent pipelines. Looking to sell off generic division. Dividend grows, share buybacks. Healthcare has become front and centre, and that's not going away. Safe haven. Underpriced at these levels. Yield is 3.55%. (Analysts’ price target is $88.96)
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.
Not expensive, 10x earnings. Be careful with pharma, look at the pipeline. Focusing on one area, and that's the risk. Volatility as drugs come off patent. Lots of restructuring. He owns JNJ instead with its 3 businesses. Yield over 5%.
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.
Believes that company has undergone R & D overhaul. Strong pipeline of new products. One of the best growth stories in the sector. Expecting strong earnings going forward. Current share price is fair.
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.
It was upgraded today. What an earnings report, and they increased full-year guidance. Their HIV franchise continues to drive the top and bottom lines. Long-term, they continue to expand in oncolocy treatments--their pipeline looks fine.
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.
She wishes that today's upgrade had come earlier. 2023 earnings will be flat, not great, but they have some new drugs will drive earnings in the future. This stock could do nothing for a while, but nothing wrong to hold it; earnings may stay flat.
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.
Their gene-editing biotechnology has lots of promise, but it's too early to tell, speculative. Buying this is a lottery ticket.
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%
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.
It reports Thursday. He thinks their new drug will be the biggest seller of all time. He owns a lot of shares.
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%.