As the market continues to recover from Greek debt fears and the Chinese market meltdown, there are several opportunities emerging in the biotech space. Here are a few of my favorites…
Exelixis Sees Gains As The Result Of Positive Phase 3 Data
Exelixis, Inc. (NASDAQ: EXEL)
Exelixis stock is currently (1:38) trading at $5.79 per share after a massive gain of 47.06% so far today. The reason for the climb is clear. The company produced positive top-line results for cabozantinib in comparison to everolimus; proving that its candidate reduced patients’ chances of disease progression or death by 42%. I recently wrote an article in more detail about the study. The article is available here. All in all, EXEL will be looking for FDA approval in the beginning of 2016; and based on the study results, they are likely to receive approval. While we will likely see a pull back from today’s massive gains, I would consider this pull back to be a strong buying opportunity as EXEL has tremendous upside potential.
MannKind Corporation Stock Is Down Today…Longs Are Loving it!
MannKind Corporation (NASDAQ: MNKD)
MannKind Corporation is one of my favorite stocks to follow; and for good reason. They say that the market is nothing more than a battle between the bulls and the bears; and the battle in the MannKind arena is epic! It’s also one of the unique stocks that make longs thank shorts. Today, MannKind Corporation stock is down by 7.60% so far (1:44), trading at $5.23 per share. However, the bulls are loving it. The reality is that they realize that MannKind is incredibly likely to see long run gains, but the short run doesn’t look so bright. So, long term bulls are picking up as much MNKD as they can get while the bears drive the price down today. A strong move that in my opinion, is likely to yield massive gains over the coming years.
Horizon Pharma Gains On Increased Guidance
Horizon Pharma PLC (NASDAQ: HZNP)
Horizon Pharma is currently (1:48) trading at $37.89 per share after a gain of 2.18% so far today after announcing new guidance. The company announced that for the second quarter, they expect to report revenue of between $170 and $172 million; far above analyst expectations of $140.44 million. They’ve also released higher guidance for the full year; coming in at between $660 and $680 million. This figure is up from $590 and $610 million while analysts expect to see $611.5 million. All in all, if the company can land within guidance, they are going to blow expectations away; and that’s got investors excited. This is another one that may be good to watch for dips and buying opportunities.
Gilead Sciences Investors Are Showing Support Before Earnings
Gilead Sciences (NASDAQ: GILD)
What would a biotech opportunity spotter post be without the mention of Gilead Sciences. This company is a phenomenal company that is trading with at less than 10 times earnings. No matter who you ask, that’s an incredible discount. However, we continue to see slow and steady gains leading up to their earnings release on the 28th; an event that I’m expecting to be a major catalyst. With that said, there’s still time to get in, but I don’t think the incredibly low valuation is likely to last much longer.
Do You Know Of Any Others?
Do you know of any other strong opportunities in biotech? If so, let us know in the comments below!