August hit the biotech industry hard, but all hope is not lost; following are several biotech companies that look as though they’ll rebound. The trends to look for are as follows: acquisition of additional pharmaceutical/biotech agencies, development of treatment options which pass clinical trials, and development of treatments for conditions which previously had no treatment.
Akebia and Valadustat
Akebia Therapeutics (AKBA) has seen some very heartening results during the clinical trials for valadustat. For patients forced into renal dialysis, valadustat is a drug which aids in proper blood levels, ensuring hemoglobin is at the correct saturation. As a result, their shares have soared in recent days.
Akebia Therapeutics sees itself as a leading purveyor of HIF treatments. HIF is the Hypoxia Inducible Factor. It’s a kind of biology which apes a body’s response to altitude physiologically. Oxygen saturation in relation to hemoglobin has a demonstrable result in a number of cases, and Akebia is head and shoulders above many other organizations running after the same treatments. Should their developments be entirely vetted by clinical trials, it’s likely their stock will see further jumps.
Vitae and Unmet Needs
Meanwhile Vitae Pharmaceuticals (VTAE) made a leap that nearly doubled their stock value in September. Since then, they’ve continued to develop a number of pharmaceutical solutions which are geared at meeting the needs of patients with ailments that haven’t traditionally found effective treatment. What this means is that any time such a drug is vetted clinically, an entirely new market of buyers appears overnight. This is the reason their stock took the leap it did recently, and such leaps are to be expected from Vitae throughout 2016, making them eminently watchable.
Actelion and Acquisition
While as yet the reports and the deal remain unconfirmed, September saw the internet abuzz with news that Actelion Ltd. (ALIOF) was going to purchase ZS Pharma (ZSPH). The price bandied about was $2.5 billion, and as of January 2016, the deal has yet to be finalized. At least according to the internet. Since preliminary talks were in September, if the acquisition is to go through, it’s probably going to happen very soon. $2.5 billion is a substantial chunk of change, meaning big changes for Actelion should the purchase go through.
ZS Pharma is known for their treatment of hyperkalemia, a word that basically means high serum potassium. Nearly fifty percent of patients experiencing the symptoms of hyperkalemia receive no treatment for the condition whatsoever, and the majority of those afflicted by the condition do not even realize it. This means that should medication designed to treat this ailment receive FDA approval and wide circulation, a massive spike in ZS Pharma stock would take place. Actelion Ltd. is obviously aware of this, and poised to capitalize on such successful treatment.
The biotech industry took a sharp dive in August of 2015, but part of that may very well have had something to do with what is colloquially known in financial circles as the “seven-year slump”. With a variety of biotech companies developing drugs which are undergoing extremely positive clinical trials, and a number of other organizations working on creating treatments for ailments that remain unchecked, a great deal of biotech companies are actually poised for a solid comeback in 2016. These are only three, but some things to look for are new drugs in the later stages of development, acquisitions, and the treatment of ailments which aren’t always considered, or have been left unattended for a length of time. Also, pharmaceutical agencies and biotech companies successfully treating cancer usually have extreme stock leaps when their medications find FDA approval.