Investing in biotech is in today’s market a very solid investment, plain and simple; and that has been the case for a number of years. Following are the goals and objectives of several big-ticket biotech organizations worth following in 2016.
Biogen Inc. (BIIB)
Many are very positive toward Biogen Inc, as far as stocks are concerned. One of the reasons is because they lead the market in MS medication and really hit a home-run with Tecfidera recently. There also a number of medications who are in the later stages of development and geared toward such conditions as Alzheimer’s disease, lymphoma of the B-cell variety, atrophy of the spinal musculature, Hodgkin’s lymphoma, and a bevy of other effective drugs in continuous development. It seems that more heavy hits are on the way for Biogen, and it makes sense to invest with them. Some candidates have yet to earn approval with the FDA, but statistically it’s assumable a number will.
As well, Biogen has been buying quite a few shares recently. This is often done as a reward to those who already have shares in the company. Also, their revenue has pretty much doubled over the last four years. A large company that has been proven for a long time, and with a variety of drugs ready to be released soon, Biogen’s sure to grow.
Medivation also has some positive conditions surrounding it for 2016. Their primary focus is on cancer, and though Medivation lost about a fifth of its value during 2015, their current trading ratio in the price-to-earnings realm is just 28. Many investors feel that’s too cheap for the substantially speedy growth that is associated with this company, and so predict it will have a bull-run this year.
Medivation’s shares are up more than one thousand percent, compared to their numbers five years ago. A lot of that success has to do with Xtandi, which is a castration-resistant prostate cancer medication that is also metastatic. It makes sense that Xtandi would be so successful, considering what it does! Medivation, as a result, has shown a revenue growth of thirty percent in the last quarter, and that’s a good indicator their flagship drug at present will continue to grow for a long time yet. Also, Xtandi is in clinical trials of the late-stage variety to treat breast cancer; so this company’s stock is poised to skyrocket.
Medivation also has an additional cancer drug in trials: talazoparib. This is a PARP inhibitor showing promise as a potential treatment for breast cancer. The plan is to provide investors with updated clinical results for talazoparib sometime in the middle of 2016. If those updates look amenable, then talazoparib could possibly be submitted for approval very soon after, which may be a great catalyst that helps get Medivation’s stock moving in the right direction again.
Another heavy hitter in 2016 is probably going to be Lexicon Pharmaceuticals. The first thing to consider is their success in the treatment of certain tumors via medication. There has been apparent success in late-stage studies over a testing period of roughly three months. Lexicon may see its first approval for a product widely available to the commercial public this year, and that would bop its stock-value very high indeed.
Lexicon has also managed to secure an exceptionally lucrative deal with Sanofi as of November. The deal involves sotagliflozin, an SLGT1/SLGT2 inhibitor. Lexicon will get $300 million initially, and it’s possible they’ll qualify for nearly one and a half billion in regulatory and development milestones.
Between Medivation, Lexicon and Biogen, the biotech industry looks financially exciting for 2016.