Would You like a feature Interview?
All Interviews are 100% FREE of Charge
The biotechnology industry is poised for robust growth due to increasing demand for personalized treatments, rising prevalence of chronic diseases, increased investment in research and development, and technological advancements. Therefore, investors might consider buying Innoviva (INVA), ANI Pharmaceuticals (ANIP), and United Therapeutics (UTHR), which are fundamentally strong biotech stocks. read more.
The biotechnology industry thrives on consistent innovation and sustained demand for cutting-edge drugs and treatments. The field is taking advantage of an aging population and a growing demand for effective treatments for both rare and prevalent diseases, thereby contributing to its promising prospects.
So it might be wise to consider buying a fundamentally strong biotech stock: Innoviva, Inc. (inva), ANI Pharma Co., Ltd. (Anip), and United Therapeutics Corporation (UTHR).
Before we delve deeper into its fundamentals, let’s discuss why the biotechnology industry is well-positioned for growth.
Advances in gene editing, personalized medicine, synthetic biology, and government initiatives will shape the growth of the biotechnology industry. His survey of over 130 biotech executives by ICON plc showed that: 60% Only 2% of respondents expected an increase in R&D spending, while just 2% expected a reduction in funding.
The growing need for personalized medicine and the creation of additional orphan drug formulations to combat the epidemic of chronic and rare diseases are creating new avenues for biotechnology applications and driving the rise of biotechnology companies. I am.
The sector’s continued expansion is being driven by increased clinical trials, expanding drug pipelines, and increased investment in drug research and development. The clinical trials market is projected to reach $120.97 billion in 2024. It is expected to grow at a CAGR. 4.3%, reaching $184.61 billion by 2034.
In particular, biotech companies are leveraging cutting-edge technologies such as artificial intelligence (AI) and big data analytics to drive innovation and drug development. AI has made great strides in identifying drug targets, particularly in anti-cancer drug efforts. The global AI market for pharmaceuticals and biotech is valued at $850 million this year and is expected to grow rapidly. CAGR of 30.5% It is expected to reach $4.2 billion by 2027.
Investors’ interest in biotech stocks is reflected in the VanEck Biotech ETF (BBH) has returned 4.2% over the past month. Furthermore, the global biotechnology market is $3.88 trillion by 2030expanding at a CAGR of 14% from 2024 to 2030.
Considering these favorable trends, let’s analyze three fundamental aspects. biotechnology Start with the third option.
Stock #3: Innoviva, Inc. (inva)
INVA is engaged in the development and commercialization of pharmaceutical products in the United States and internationally. The company’s products include RELVAR/BREO ELLIPTA, ANORO ELLIPTA, and TRELEGY ELLIPTA.
On March 4, 2024, INVA entered into a $35 million secured credit agreement with Armata Pharmaceuticals, Inc. (ARMP). The agreement is designed to help advance clinical trials of ARMP’s phage-based therapeutic candidates for antibiotic-resistant infections. This move demonstrates his INVA’s continued support for ARMP’s efforts in the fight against antibiotic resistance.
Regarding the most recent 12 months EBITDA In terms of margin, INVA’s 56.93% is 914.2% higher than the industry average of 5.61%. Similarly, his EBIT margin for the company’s trailing twelve months was 45.43%, which is significantly higher than the industry average of 0.49%. Additionally, the trailing 12-month leveraged FCF margin of 38.85% is significantly higher than the industry average of 0.35%.
INVA’s total revenue for the fourth quarter ended December 31, 2023 increased 30.4% to $85.84 million. The company’s net product sales totaled $19.68 million, an increase of 34.9% year over year.
Additionally, INVA’s net income attributable to shareholders and net income per share were $61.53 million and $0.76, respectively. This compares to a net loss of $68.31 million, or a net loss of $0.98 per share, in the same period last year.
Analysts expect INVA’s EPS to increase significantly year-over-year to $0.22 for the quarter ending June 30, 2024. Revenue for the quarter ending September 30, 2024 is expected to be $73.14 million, an increase of 8.7% year over year. INVA stock has increased 35.2% over the past year, closing at $14.75.
Inva’s power rating reflects a solid outlook. The overall rating is B, which is equivalent to a “buy” according to our own rating system. POWR Ratings evaluates stocks by 118 different factors, each with its own weighting.
Ranked 38th out of 362 stocks. biotechnology industry. The value grade is A and the quality grade is B. click here Check out INVA’s growth, momentum, stability, and sentiment ratings.
Stock #2: ANI Pharmaceuticals Ltd. (Anip)
ANIP is a biopharmaceutical company that develops, manufactures and markets branded and generic prescription medicines in the United States and Canada. The company manufactures oral solid, semi-solid, liquid and topical products, as well as controlled substances and potent products.
On January 23, 2024, ANIP announced the launch of Pentoxifylline Extended Release Tablets USP 400mg, a generic version of Trental. With an estimated annual market size of approximately $19.7 million in the U.S., ANIP emphasizes its commitment to growing the generic drug business and reliability of supply to enhance patient access to high-quality therapeutics. That’s what I’m aiming for.
On January 16, 2024, ANIP announced the FDA approval and launch of Indomethacin Oral Suspension (USP), a generic version of Indomethacin Oral Suspension, with Competitive Generic (CGT) designation and 180 days of exclusivity. Emphasis was placed on increasing access to high-quality medicines. Generic drugs with limited competition.
In terms of gross profit margin over the past 12 months, ANIP’s 62.71% is 9.5% higher than the industry average of 57.29%. Similarly, the trailing 12-month leveraged FCF margin of 23.17% is significantly higher than the industry average of 0.35%. Additionally, its trailing 12-month asset turnover ratio of 0.58x is 49.2% higher than the industry average of 0.39x.
ANIP’s net revenue for the fourth quarter ended December 31, 2023 increased 39.7% year-over-year to $131.65 million. Adjusted EBITDA increased 29.5% year over year to $30.2 million. Additionally, adjusted net income and adjusted earnings per share available to common stockholders increased 54.3% and 31.6%, respectively, from the prior year period to $19.2 million and $1.
Street expects ANIP’s revenue for the quarter ending March 31, 2024 to be $125.93 million, up 17.9% year-over-year. Similarly, EPS for fiscal 2025 is expected to be $5.03, up 12.8% year over year. He beat Street EPS estimates in each of his subsequent four quarters. Shares have increased 61.5% over the past year, closing at $66.23.
ANIP’s positive outlook is reflected in its POWR Rating. The overall rating is B, which is equivalent to a “buy” according to our own rating system.
It has an A grade for Growth and Sentiment and a B grade for Value. It ranks 16th in the industry. To see ANIP’s rating on momentum, stability, and quality, click here.
Stock #1: United Therapeutics Corporation (UTHR)
United Therapeutics Corporation is a biotechnology company dedicated to developing and commercializing products that address the unmet medical needs of patients with chronic and life-threatening diseases around the world.
On December 13, 2023, UTHR and Miromatrix Medical Inc. (MIRO) announced the successful completion of their tender offer and merger, resulting in UTHR acquiring all outstanding shares of MIRO and establishing its status as a wholly owned subsidiary. It was decided to solidify and promote the development of MIRO’s Milochidney. product.
In terms of capital expenditures/revenue over the past 12 months, UTHR’s 9.90% is 142.2% higher than the industry average of 4.09%. Similarly, his trailing 12-month leveraged FCF margin of 26.09% is significantly higher than his industry average of 0.35%. Moreover, his EBITDA margin for the company’s trailing twelve months was 53.24%, which is 848.5% higher than the industry average of 5.61%.
UTHR’s total revenue for the fourth quarter ended December 31, 2023 was $614.7 million, an increase of 25.1% from the same period last year. Operating income increased 48.1% year-on-year to $260.1 million. The company’s net income was $217.1 million, or $4.36 per share, an increase of 64.3% and 63.3%, respectively, compared to the same period last year.
UTHR’s EPS for the quarter ending March 31, 2024 is expected to be $5.64, up 16% from the year-ago period. Revenue for the quarter is expected to be $622.92 million, an increase of 22.9% year-over-year. It beat consensus EPS estimates in each of the trailing four quarters. Shares rose 12.9% over the past month, closing at $241.27.
It’s no surprise that UTHR has an overall rating of A, which equates to a Strong Buy, in our proprietary ratings system.
Grade B for value and quality. It ranks #9 within the biotechnology industry. In addition to the above, we also assigned UTHR grades for Growth, Momentum, Stability, and Sentiment.Get all UTHR ratings here.
What’s next?
Steve Reitmeister, a 43-year investment veteran, shares his market outlook for 2024, his trading plans for the year ahead, and his top 11 stocks.
Stock market outlook for 2024 >
UTHR stock was unchanged in premarket trading Thursday. Year-to-date, UTHR has gained 9.72%. In comparison, the benchmark S&P 500 index rose 8.55% during the same period.
About the author: Abhishek Bhuyan
Abhishek began his professional journey as a financial journalist because of his keen interest in determining the fundamental factors that influence the future performance of financial products.
post 3 Biotech Stocks to Boost Your Portfolio Returns It first appeared stocknews.com