Biotech stocks are on an up-and-down roller coaster, but they continue to perform better than the overall market.
In 2020, Pfizer and BioNTech (BNTX), Moderna (MRNA), and Johnson & Johnson launched a trio Covid vaccines. As society adapted to Covid, and as other concerns such as inflation, the economy and politics became more prominent, biotech lost its appeal.
Investor's Business Daily shares of the biotech industry fell from February 2021 until June 2022. Biotech stocks were under pressure recently due to the banking crisis, and the Centers for Medicare & Medicaid Services' plans to begin negotiating prices for the most expensive drugs. According to IBD Digital, today, the entire group is rated at 73 Relative strength, which places it among the top 27% in terms of performance over the past 12 months.
The group is ranked 40 out of 197 industry groups. The group is ranked No. 40 out of 197 industries groups. The pharma industry ranks No. 36.
It's important to pay attention to specific measures when you are analyzing stocks. The best biotechs trading above 10 are:
Catalyst, the leading biotech stock in an industry group of almost 800 companies, is ranked No. Catalyst is the No. 1 biotech company, and leads an industry group with almost 800 companies.
Catalyst has recently added a new product to its line-up. Catalyst, in a deal with Eisai, now sells the anti-seizure medication Fycompa to Americans. Catalyst sells Firdapse as a treatment for Lambert Eaton Myasthenic Syndrome, or LEMS. LEMS is an autoimmune disorder that causes muscle weakness and occurs most often in lung cancer patients.
Teva Pharmaceuticals (TEVA), despite growing sales, recently announced that it will launch a generic Firdapse. Teva claims that the patents for Firdapse do not exist and are therefore unenforceable. Teva has filed a response to Catalyst.
MarketSmith.com reports that Catalyst shares fell below their 50-day average following the Teva announcement. The biotech stock has recently risen above this line following a positive fourth-quarter report.
Catalyst Stock remains on the Tech Leaders List
CPRX has the best possible Composite Rating of 99 according to IBD Digital. The biotech stock is now in the top 1% for fundamental and technical measures. The Relative Strength rating, which measures its 12-month performance is also among the top 4%.
Amphastar is a company that develops, produces and sells injectable drugs. The company also develops drugs that are inhaled, or can be delivered through the nose.
Amphastar saw its sales increase by 12% in the fourth quarter and earnings adjusted to reflect this growth surge 74%. Primatene mist, its largest product, saw sales rise 4% to $22.3 millions. Primatene Mist, an asthma inhaler, is the company's biggest product.
The company sells syringes that are pre-filled with epinephrine. This substance is used to treat allergic reactions in an emergency. Sales grew 14% in the December quarter to $21.4million. Lidocaine, a local anesthetic, and glucagon (a blood sugar hormone) are also big sellers. The sales of these products increased by 19% and 10 %, respectively. Revenue from phytonadione injections for bleeding disorders fell by 16%.
The Composite Rating for shares is 97, and the Relative Strength rating is 94.
The shares form a cup with a purchase point of 44.56.
Amphastar is also a tech leader.
Vertex ranks fourth in the biotech sector by market capitalization. It is ranked fourth behind Amgen, Gilead Sciences and Regeneron Pharmaceuticals.
The company is de facto the leader in the market for drugs to treat cystic fibrosis. Sales of Trikafta triple regimen, which dominates the fourth quarter, increased by 11%, to $2.3 billion.
It's expanding now into other initiatives. Vertex has partnered with Crispr Therapeutics to develop a gene editing approach for two blood diseases. Vertex announced plans to purchase ViaCyte, a privately-held diabetes treatment partner, for $320 million. Both companies are currently testing a type 1 diabetes cell replacement drug.
Vertex also tests treatments for pain, Duchenne muscular Dystrophy, liver and kidney disease, and other diseases.
The Biotech Stock has a Composite rating of 96, and a relative strength rating of 86. The shares recently broke through a cup-base with an entry of 325.29.
Stock is also a Tech leader.
Genelux is the newest biotech stock. The shares were listed in late January. The company is developing a new immunotherapy approach. The company's technology, called oncolytic immune therapy, uses viruses that selectively replicate tumor cells and kill them, leaving normal cells unharmed.
The company tests treatments for lung, ovarian and pancreatic tumors. The company is also working on solid tumors and blood cancers. Genelux hasn't yet made any sales, but it is expected to continue reporting losses until at least 2025. This is normal for biotechs in their early stages.
The stock of biotech has the best possible Relative strength Rating of 99, and a solid Composite Rating of 94.
It is also a tech leader.
Enliven has developed treatments for many cancers. The company's most recent testing focuses on chronic myeloid cancer, lung cancer, and other solid tumours.
Enliven is also working on early-stage cancer drugs to treat solid tumors. Enliven says that these cancers do not have approved treatments. Enliven has no sales because it does not yet have a product. It is expected that the company will continue to lose money for several years.
Enliven, a biotech stock that was listed in 2020, is relatively new. Shares have recovered strongly after a fall in mid-2022. The biotech stock now has a Relative Strength rating of 99, and a Composite Rating of 82.
The biotech stock has recently broken through the 50-day line.
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The post The Cream Of The Crop - 5 Biotech Stocks that Outrank Most Stocks first appeared on Investor's Business Daily.