Bio-pharmaceuticals Cashing In On the Best Solutions
This week we're looking at the Biotech sector. Biotech is a $700 billion industry and continuing to grow. All three of our candidates are working on improvements in the pharmaceutical industry. We check in with what each company does.
Biopharmaceuticals Cashing In On the Best Solutions
This week we decided to check in with the exciting field of biotech. Biotechnology is driven by looking for agricultural solutions, conserving natural resources and advancements in the medical field. When we checked in with the sector, we see that our three candidates are all biopharmaceuticals.
In biopharmaceuticals, we see stem cell technology, nanotechnology and developments in pharmaceuticals. The category includes any employment of organisms and living systems in order to make society better.
The United States is the global leader with the industry’s total market cap over $700 billion. And we know that sector will just keep growing and growing…at least until all the diseases in the world have a cure.
All three of our candidates this week are working to make the pharmaceutical industry. Let’s check in with what each is working on…
First up, we’ve got Aeterna Zentaris Inc. (AEZS). Aeterna Zentaris is a biopharmaceutical company focused on serving the needs of patients with rare endocrine diseases specifically Adult Growth Hormone Deficiency (AGHD).
The company’s main product is Macimorelin which is an oral growth hormone secretagogue receptor agonist that is used to test for AGHD. It stimulates the decretion of growth hormone from the pituitary gland into the circulatory system. Clinical studies demonstrated that this type of testing is safer and much simpler than other available options.
About 6,000 cases of AGHD are reported in the US each year on top of the 50,000 diagnosed adults
Last week shares opened at $3.03 and closed on Friday at $2.90
Next up, we’ve got PDL BioPharma Inc (PDLI). PDL Biopharma looks for value by acquiring commercial and late stage pharmaceutical assets with growth potential. The company was originally founded in 1986 as Protein Design Labs and changed its name to PDL BioPharma in 2006.
The company uses different tactics to build value for its shareholders – royalty monetization, debt structures and equity investments. It has decided to prioritize the use of equity investments and steer away from royalty deals. But that doesn’t mean the current royalties are going anywhere. The projected cumulative cash flows from royalties is expected to exceed $550 million by 2026.
PDL’s primary subsidiaries are Noden Pharma, LENSAR and Evofem Biosciences. Noden is a specialty pharmaceutical company that is focused on acquiring prescription medicines. LENSAR is a medical device company that is the producer of a laser for refractive cataract surgery. Evofem is a clinical stage women’s health company.
The company keeps a strong liquid balance sheet so that it is ready when the next best investment opportunity arises.
Last week shares opened at $3.14 and closed on Friday at $3.11.
Finally, we’ve got ANI Pharmaceuticals Inc (ANIP). ANI Pharmaceuticals develops, manufactures and markets top quality prescription pharmaceuticals in the U.S.A. It has two facilities with capabilities to developing and manufacturing liquids, powder and oral solids. One in Ontario and one in Minnesota.
The company has a portfolio of over 100 products including both generic and branded drugs. ANI has the unique capability for manufacturing products in a containment space such as hormones and it is approved by the DEA for working with up to Class II controlled substances.
ANI is focused on delivering value to its shareholders through partnerships, strategic alliances and acquisitions. Which means that along with producing drugs, the company has royalty payments flowing in as well.
Last week shares opened at $81.91 and closed on Friday at $83.43. We’ll have to see if ANI can keep that momentum up over this trading week.
We’ll be back on Wednesday to check in with the financials of each and see what share prices have done in the first 48 hours of the trading week.