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3 “Strong Buy” Biotech Stocks Trading Under $10

3 "Strong Buy" Biotech Stocks Trading Under $10

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4 years ago

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Wall Street is experiencing some major déjà vu. The tensions between the U.S. and China flared after President Trump threatened to impose new import tariffs. The difference this time? These tariffs would serve as a punishment for China’s role in the COVID-19 pandemic. In response, stocks posted sharp declines, a rough start to the month of May.

The new week of trading could see more of the same. U.S. stock pointed to losses in Monday's trading session as statements made by U.S. Secretary of State Mike Pompeo the day before failed to alleviate trade war fears. Going off of the administration’s earlier statements, Pompeo supported the President’s claim that the virus originated in a Wuhan, China laboratory, adding that the country also stocked up on medical supplies while covering up the extent of COVID-19's spread.

The possibility that a trade war could be reignited has spooked market watchers, but for those looking at the glass half full, there’s a silver lining. Compelling names have seen their share prices driven lower, presenting investors with more attractive entry points. Seasoned Street veterans argue this is particularly true of the biotech space, with this area of the market holding up better than others.

Bearing this in mind, we set out to find exciting yet affordable opportunities within the biotech industry. Using TipRanks’ database, we found three stocks trading for under $10 per share that fit the bill, with each offering up “Strong Buy” consensus ratings from the analyst community and plenty of upside potential. Here’s the full scoop.

Aptinyx (APTX)

Using a differentiated approach that involves modulating the N-methyl-D-aspartate (NMDA) receptor via a unique mechanism rather than switching it on or off, Aptinyx develops cutting-edge therapies for brain and nervous system disorders. Deemed “the comeback kid”, at $2.72 per share, now could be the time to pull the trigger before APTX takes off on an upward trajectory.

This is the opinion of H.C. Wainwright's Raghuram Selvaraju. The five-star analyst doesn’t dispute that shares have been put through the ringer as of late, but he believes Wall Street has reacted unfairly to non-statistically significant Phase 2 trial results for its lead candidate, NYX-2925, in diabetic neuropathic pain (DPN) early last year.

In fact, Selvaraju cites several reasons for his continued optimism. During the DPN trial, there was clear evidence of NYX-2925's activity, which was supported by additional proof of efficacy in a separate Phase 2 study in fibromyalgia. Additionally, NYX-2925's modulation of the N-methyl-D-aspartate (NMDA) receptor is a validated target in the central nervous system (CNS) space. It should be noted that multiple post-hoc analyses on the Phase 2 DPN data were conducted. NYX-2925 is also in a confirmatory Phase 2b trial that incorporates the discoveries from the Phase 2 study, and the current trial is evaluating a single dose vs. Placebo, making it more robustly powered than the earlier trial.

All of this prompted Selvaraju to comment, “From our vantage point, the lack of value being attributed to Aptinyx's technology platform, lead asset and pipeline provides an intriguing entry point for those investors willing to judge the clinical data on its own merits. We also note the precedent cases of gabapentin and duloxetine, which ultimately achieved market entry in neuropathic pain despite setbacks in DPN trials.”

If that wasn’t enough, Selvaraju sees multiple upcoming clinical data catalysts for not only NYX-2925, but also for its NYX-783 asset and NYX-458 candidate. Speaking to the large market opportunity, he added, “We believe that chronic neuropathic pain—whether embodied by DPN or fibromyalgia—constitutes a poorly addressed condition. Furthermore, the recent opioid crisis has made it well-nigh impossible for physicians to rely on opioid drugs for pain management. Accordingly, there is a burgeoning need for non-opioid, non-addictive analgesic agents that work via novel mechanisms. We note that approximately 8 million individuals in the U.S. alone suffer from DPN, while roughly 5 million suffer from fibromyalgia.”

It should come as no surprise, then, that Selvaraju decided to join the bulls. To initiate his APTX coverage, he put a Buy rating and $7 price target on the stock, implying 145% upside potential. (To watch Selvaraju’s track record, click here)

Turning now to the rest of the Street, other analysts agree with Selvaraju. The stock has received only Buy ratings in the last three months, 4 to be exact, so the consensus rating is a Strong Buy. Given the $10.67 average price target, the upside potential comes in at a whopping 274%. (See Aptinyx stock analysis on TipRanks)

Viking Therapeutics (VKTX)

Targeting metabolic and endocrine disorders, Viking Therapeutics’ technology could be a game changer, with it boasting lead candidate, VK2809, an orally available, liver selective thyroid hormone receptor β (TRβ) agonist. Given its vast potential in this area of medicine, several members of the Street believe that at $5.45 apiece, it’s undervalued.

Digging a bit deeper into VKTX’s technology, TRβ agonists are powerful anti-steatotic drugs (reducers of liver fat) that could be capable of reversing NASH and even fibrosis, based on available clinical data. In addition, TRβs are safe and convenient oral drugs that demonstrate efficacy close to the levels seen in injectables with significantly less clear safety windows.

Writing for BTIG, analyst Julian Harrison noted, “Within the TRβ space, we believe VK2809 is positioned to be best-in-class with a favorable mix of potency and tolerability/safety, thanks to calculated prodrug chemistry. Competition from Madrigal’s resmetirom (MGL-3196) has a 2 to 3-year development lead, but in a market of chronic and predominantly asymptomatic disease, safety, tolerability and even ease of administration will matter considerably.”

Expounding on the competition with Madrigal, Harrison points out MGL-3196 doesn’t limit systemic exposure, while VKTX’s VK2809 remains in prodrug form outside the liver. This means that VK2809 can generate truly selective activation in the liver, making the issue of targeting bias a nonissue.

Even though COVID-19 has caused industry-wide delays, twelve-month biopsy data from the Phase 2b trial of VK2809 in patients with biopsy-confirmed NASH shouldn’t face much of a disruption.

“Overall, we view VK2809’s strong clinical data and the enterprise value of only $140 million as a chance for investors to invest in an undervalued asset ahead of de-risked POC readouts,” Harrison concluded.

Taking all of this into consideration, Harrison kicked off his VKTX coverage by publishing a Buy rating. The analyst also set a $9 price target, which indicates shares could climb 65% higher in the next year.

Like Harrison, other Wall Street analysts are optimistic about this biotech’s long-term growth prospects. With 8 Buys assigned in the last three months compared to no Holds or Sells, the message is clear: VKTX is a Strong Buy. Should the $14.86 average price target be met, a twelve-month gain of 153% could be in the cards. (See Viking stock analysis on TipRanks)

Mersana Therapeutics (MRSN)

Last but not least we have Mersana, a biotech company that develops antibody-drug conjugates (ADCs) for oncology, with its focus on drug payloads designed to deliver more chemotherapy to the tumors and less to the surrounding tissue, particularly the bone marrow. Ahead of several upcoming data readouts, some analysts believe that its $8.23 per share price tag presents investors with a unique buying opportunity.

Part of the excitement surrounding MRSN is related to its lead program, XMT-1536. The ADC for later-line ovarian cancer (OC) and non-small-cell lung carcinoma (NSCLC) was designed using two innovative technologies that enable it to spur controlled bystander killing, with it specifically targeting NaPi2b, a clinically validated target over-expressed on several important tumor types. It should be noted that XMT-1536 is already progressing through dose-ranging studies and data has demonstrated it is active in platinum-resistant OC and NSCLC adenocarcinomas.

Representing BTIG, five-star analyst Thomas Shrader argues that key data sets, which are scheduled for release in the second half of 2020, could de-risk XMT-1536 in both OC and NSCLC, as well as fuel even more upside by “further validating the Mersana ADC platform and its application in the earlier-stage pipeline.” He added, “The ~33% ORR seen in very late-line NaPi2b-high OC patients (at dose ≥ 30 mg/m2) seems likely to be good enough for accelerated approval and should increase in earlier line patients.”

According to Shrader, the potential of ADCs can be taken one step further. “We believe the future of ADCs may be to replace the chemo component in chemo + IO combinations. In this approach, Mersana’s safety profile seems well placed, as their drugs to date seem particularly gentle on the patient’s bone marrow while clearly showing tumor killing (and corresponding tumor antigen release). Similarly, the newest focus at Mersana, termed iADCs, should drive increased anti-tumor innate immune responses – an area widely considered to be the next leg of IO,” he explained.

When it comes to the balance sheet, MRSN is standing on solid ground. As of Q4 2019, the company had $100 million in cash and cash equivalents, and last month, it exercised its ATM to raise an additional $65 million. This should be enough to support Phase 1 clinical studies of XMT-1536 and Phase 1 dose-expansion studies for its XMT-1592 therapy.

Based on everything MRSN has going for it, it’s no wonder Shrader decided to initiate coverage. Along with a Buy recommendation, he set the price target at $14, suggesting 70% upside potential. (To watch Shrader’s track record, click here)

All in all, other Wall Street pros echo the BTIG analyst’s sentiment. Out of 4 total reviews issued in the last three months, 100% were bullish, making the consensus rating a Strong Buy. The $13 average price target is less aggressive than Shrader’s, but it still leaves room for shares to gain 53% in the next year. (See Mersana stock analysis on TipRanks)

To find good healthcare ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

The post 3 "Strong Buy" Biotech Stocks Trading Under $10 appeared first on TipRanks Financial Blog.

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

Published

7 hours ago

on

March 9, 2024

By

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

“When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

“It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

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Walmart joins Costco in sharing key pricing news

The massive retailers have both shared information that some retailers keep very close to the vest.

Published

10 hours ago

on

March 9, 2024

By

As we head toward a presidential election, the presumed candidates for both parties will look for issues that rally undecided voters. 

The economy will be a key issue, with Democrats pointing to job creation and lowering prices while Republicans will cite the layoffs at Big Tech companies, high housing prices, and of course, sticky inflation.

The covid pandemic created a perfect storm for inflation and higher prices. It became harder to get many items because people getting sick slowed down, or even stopped, production at some factories.

Related: Popular mall retailer shuts down abruptly after bankruptcy filing

It was also a period where demand increased while shipping, trucking and delivery systems were all strained or thrown out of whack. The combination led to product shortages and higher prices.

You might have gone to the grocery store and not been able to buy your favorite paper towel brand or find toilet paper at all. That happened partly because of the supply chain and partly due to increased demand, but at the end of the day, it led to higher prices, which some consumers blamed on President Joe Biden's administration.

Biden, of course, was blamed for the price increases, but as inflation has dropped and grocery prices have fallen, few companies have been up front about it. That's probably not a political choice in most cases. Instead, some companies have chosen to lower prices more slowly than they raised them.

However, two major retailers, Walmart (WMT) and Costco, have been very honest about inflation. Walmart Chief Executive Doug McMillon's most recent comments validate what Biden's administration has been saying about the state of the economy. And they contrast with the economic picture being painted by Republicans who support their presumptive nominee, Donald Trump.

Walmart has seen inflation drop in many key areas.

Image source: Joe Raedle/Getty Images

Walmart sees lower prices

McMillon does not talk about lower prices to make a political statement. He's communicating with customers and potential customers through the analysts who cover the company's quarterly-earnings calls.

During Walmart's fiscal-fourth-quarter-earnings call, McMillon was clear that prices are going down.

"I'm excited about the omnichannel net promoter score trends the team is driving. Across countries, we continue to see a customer that's resilient but looking for value. As always, we're working hard to deliver that for them, including through our rollbacks on food pricing in Walmart U.S. Those were up significantly in Q4 versus last year, following a big increase in Q3," he said.

He was specific about where the chain has seen prices go down.

"Our general merchandise prices are lower than a year ago and even two years ago in some categories, which means our customers are finding value in areas like apparel and hard lines," he said. "In food, prices are lower than a year ago in places like eggs, apples, and deli snacks, but higher in other places like asparagus and blackberries."

McMillon said that in other areas prices were still up but have been falling.

"Dry grocery and consumables categories like paper goods and cleaning supplies are up mid-single digits versus last year and high teens versus two years ago. Private-brand penetration is up in many of the countries where we operate, including the United States," he said.

Costco sees almost no inflation impact

McMillon avoided the word inflation in his comments. Costco  (COST)  Chief Financial Officer Richard Galanti, who steps down on March 15, has been very transparent on the topic.

The CFO commented on inflation during his company's fiscal-first-quarter-earnings call.

"Most recently, in the last fourth-quarter discussion, we had estimated that year-over-year inflation was in the 1% to 2% range. Our estimate for the quarter just ended, that inflation was in the 0% to 1% range," he said.

Galanti made clear that inflation (and even deflation) varied by category.

"A bigger deflation in some big and bulky items like furniture sets due to lower freight costs year over year, as well as on things like domestics, bulky lower-priced items, again, where the freight cost is significant. Some deflationary items were as much as 20% to 30% and, again, mostly freight-related," he added.

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Walmart has really good news for shoppers (and Joe Biden)

The giant retailer joins Costco in making a statement that has political overtones, even if that’s not the intent.

Published

11 hours ago

on

March 9, 2024

By

As we head toward a presidential election, the presumed candidates for both parties will look for issues that rally undecided voters. 

The economy will be a key issue, with Democrats pointing to job creation and lowering prices while Republicans will cite the layoffs at Big Tech companies, high housing prices, and of course, sticky inflation.

The covid pandemic created a perfect storm for inflation and higher prices. It became harder to get many items because people getting sick slowed down, or even stopped, production at some factories.

Related: Popular mall retailer shuts down abruptly after bankruptcy filing

It was also a period where demand increased while shipping, trucking and delivery systems were all strained or thrown out of whack. The combination led to product shortages and higher prices.

You might have gone to the grocery store and not been able to buy your favorite paper towel brand or find toilet paper at all. That happened partly because of the supply chain and partly due to increased demand, but at the end of the day, it led to higher prices, which some consumers blamed on President Joe Biden's administration.

Biden, of course, was blamed for the price increases, but as inflation has dropped and grocery prices have fallen, few companies have been up front about it. That's probably not a political choice in most cases. Instead, some companies have chosen to lower prices more slowly than they raised them.

However, two major retailers, Walmart (WMT) and Costco, have been very honest about inflation. Walmart Chief Executive Doug McMillon's most recent comments validate what Biden's administration has been saying about the state of the economy. And they contrast with the economic picture being painted by Republicans who support their presumptive nominee, Donald Trump.

Walmart has seen inflation drop in many key areas.

Image source: Joe Raedle/Getty Images

Walmart sees lower prices

McMillon does not talk about lower prices to make a political statement. He's communicating with customers and potential customers through the analysts who cover the company's quarterly-earnings calls.

During Walmart's fiscal-fourth-quarter-earnings call, McMillon was clear that prices are going down.

"I'm excited about the omnichannel net promoter score trends the team is driving. Across countries, we continue to see a customer that's resilient but looking for value. As always, we're working hard to deliver that for them, including through our rollbacks on food pricing in Walmart U.S. Those were up significantly in Q4 versus last year, following a big increase in Q3," he said.

He was specific about where the chain has seen prices go down.

"Our general merchandise prices are lower than a year ago and even two years ago in some categories, which means our customers are finding value in areas like apparel and hard lines," he said. "In food, prices are lower than a year ago in places like eggs, apples, and deli snacks, but higher in other places like asparagus and blackberries."

McMillon said that in other areas prices were still up but have been falling.

"Dry grocery and consumables categories like paper goods and cleaning supplies are up mid-single digits versus last year and high teens versus two years ago. Private-brand penetration is up in many of the countries where we operate, including the United States," he said.

Costco sees almost no inflation impact

McMillon avoided the word inflation in his comments. Costco  (COST)  Chief Financial Officer Richard Galanti, who steps down on March 15, has been very transparent on the topic.

The CFO commented on inflation during his company's fiscal-first-quarter-earnings call.

"Most recently, in the last fourth-quarter discussion, we had estimated that year-over-year inflation was in the 1% to 2% range. Our estimate for the quarter just ended, that inflation was in the 0% to 1% range," he said.

Galanti made clear that inflation (and even deflation) varied by category.

"A bigger deflation in some big and bulky items like furniture sets due to lower freight costs year over year, as well as on things like domestics, bulky lower-priced items, again, where the freight cost is significant. Some deflationary items were as much as 20% to 30% and, again, mostly freight-related," he added.

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