Though the drug sector was off to a strong start in 2018, it has struggled thereafter probably on U.S. market instability and a few negative updates on the pipeline and regulatory front. Also, a slowdown in sales of some of the most high-profile older drugs, courtesy of payers and competitive pressure from both branded and generic drugs, is a concern for the sector. Moreover, concerns about pressure on drug prices continue to cloud shares of pharma and biotech companies.
Drug pricing has been in the spotlight once again this month when President Donald Trump announced plans to lower prescription drug costs. He laid out his vision of increasing competition, lowering consumers' out-of-pocket costs for drugs, creating incentives to lower list prices, cutting down regulatory burdens and asking the FDA to make it compulsory for drug companies to display prices in their TV advertisements.
The biotech industry has declined 9.9% this year so far, underperforming the 0.5% rise for the S&P 500 in the same time frame.
CRISPR Therapeutics AG CRSP
On a year-to-date basis, shares of CRISPR Therapeutics have gained 213.4%. Meanwhile, loss estimates of this Swiss gene editing company narrowed 7.8% for 2018 and 9% for 2019 over the past 30 days. CRISPR Therapeutics sports a Zacks Rank #1.
BioMarin Pharmaceuticals Inc. BMRN
BioMarin's earnings estimates rose 47.7% for 2018 and 20.9% for 2019 in the past 60 days. Shares of this California-based biotech, which makes rare disease drugs, have risen 1.6% this year so far.
This Zacks Rank #2 stock is expected to record sales growth of 13.4% this year and 15.1% next year
Athersys, Inc. ATHX
Athersys carries a Zacks Rank #2. Loss estimates for this Cleveland, OH-based company narrowed 29.4% for 2018 and 19.6% for 2019 in the last 30 days. Sales growth this year for this biotech stock is expected to be 426.4%. Athersys' shares have returned 35.9% this year so far.
Aeglea BioTherapeutics, Inc. AGLE
Loss estimates for this #2 Ranked stock narrowed 13.5% for 2018 and 7.5% for 2019 in the last 30 days. Sales growth of this Texas-based biotech is expected to be 15.3% this year. Aeglea's shares have returned 88.9% this year so far.
Ligand Pharmaceuticals LGND
This #2 Ranked stock's earnings per share estimates increased 11.8% for 2018 and 8% for 2019 in the last 60 days. This California-based company's shares have rallied 39.8% year to date. This company is expected to record sales growth of 37.7% this year and 14.3% next year.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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Sanofi (SNY): Free Stock Analysis Report
BioMarin Pharmaceutical Inc. (BMRN): Free Stock Analysis Report
Celgene Corporation (CELG): Free Stock Analysis Report
Athersys, Inc. (ATHX): Free Stock Analysis Report
Ligand Pharmaceuticals Incorporated (LGND): Free Stock Analysis Report
Aeglea BioTherapeutics, Inc. (AGLE): Free Stock Analysis Report
CRISPR THERAPTC (CRSP): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
