It’s no surprise that investors covet stocks that can continue to rise when everything else in the market is falling. Most companies don’t have the special sauce needed to reassure shareholders in times of economic uncertainty, and the few that do are likely to have looming catalysts for higher profits or access to revenue-generating market segments than they do. competitors do not have: or both.
On that note, below are two biomedical growth stocks that are crushing the bear market. And both companies are poised for future success thanks to their upcoming milestones and strong earnings performance, so they could be of interest to long-term investors.
1. Ionis Pharmaceuticals
Buoyed by a number of favorable clinical trial data readings and success with regulators, ionis pharmaceuticals (IONS -0.83%) is up 16% this year compared to the market’s drop of more than 13%. Although the company has three drugs on the market and its latest quarterly revenue grew 27.2% year over year, it is unprofitable. But that could be changing relatively soon thanks to a particularly lucrative program nearing the end of its fundamental tests.
On June 21, the company announced that an interim analysis of its Phase 3 clinical trial investigating its drug candidate eplontsen had met the study’s two primary endpoints. That means the chances of it getting approved by regulators are pretty good. Ionis expects to file a New Drug Application (NDA) with the US Food and Drug Administration (FDA) later this year. Eplontersen is being investigated for its merit in the treatment of hereditary transthyretin-mediated amyloid polyneuropathy (ATTRv-PN), a rare and serious chronic disease.
More importantly to investors, management believes that marketing eplontsen would be worth billions of dollars per year at peak sales, and is also the company’s most lucrative short-term opportunity. Right now, Ionis’ last 12-month revenue is only around $840.7 million, so eplontersen’s contribution could be huge. In other words, it’s no surprise that Ionis is outperforming the bear market as investors price in the likelihood of increased cash inflows from a near-term approval.
At the same time, some of his earlier stage projects are also going perfectly. On June 13, FDA regulators granted their request for orphan drug designation for their candidate called ION582, a drug intended to treat the rare inherited disease Angelman syndrome. Orphan designation ensures that you’ll get some tax credits, some clinical trial fee waivers, and ultimately more revenue from the eventual commercialization of ION582 than you otherwise could. However, it is currently only in phase 2 clinical trials. On July 28, the company announced positive results from a phase 2b trial of one of its anticoagulant treatments called fesomersen, paving the way for future development.
All in all, it’s another positive development that could lead to making more money in the future, and that sure helps when the market is nervous about growth stocks like Ionis.
2. Jazz Pharmaceuticals
With its shares down 18% this year, jazz pharmaceuticals (JAZZ 1.13%) it has no problem outperforming the stock market. While currently unprofitable, the company expects to generate $5 billion in annual sales by 2025, a significant increase from its $3.3 billion revenue in the last 12 months.
To reach that goal, it will build on increased revenue from its recently launched drugs like Xywav, which treats idiopathic hypersomnia, a rare sleep disorder. Jazz secured an orphan drug designation for Xywav, and it’s the only FDA-approved treatment for idiopathic hypersomnia, so it will have the market to itself for now, and probably for quite some time. That should be music to investors’ ears.
Separately, the company aims to market its Epidiolex epilepsy drug in additional markets in Europe, with France being the largest on the docket. Epidiolex is already approved in the US, so its marketing in other countries will certainly lead to achieve higher revenue growth. In the first quarter, sales of the drug generated 157.9 million dollars, which, according to the management, is only the beginning of its expansion. It will also work to research the drug for additional indications to potentially generate even more revenue in the future.
As if the prospect of significantly more short-term selling wasn’t enough to justify its outperformance, it will also report six different test readings between now and 2024, each an opportunity for the stock to rally nicely. news. Therefore, now could be a favorable time to buy the stock, especially considering its progress to date in realizing its ambitions for the coming years.