Biotech Stocks Targeting High Value Indications

The biotechnology space is a booming one, with a mix of technological and medical innovation leading to advanced treatments of incredible value. Not only are the biotechnology companies of today bringing improved quality and extended length of life to patients, they’re also bringing incredibly profitable opportunities to investors. 

When looking into a potential biotechnology investment, it’s important to look at the indications that drugs are being developed for. After all, if an indication is rare or has a large national or global audience, an approved drug could quickly become a blockbuster. With that said, here are several companies that are working on developing treatments for high-value, blockbuster-worthy indications. 

Regeneron Pharmaceuticals (REGN): Several High Value Indications To Pay Attention To

Regeneron Pharmaceuticals is quickly becoming a top contender in the world of biotech. The company’s recently approved Eylea product is quickly seeing success in the age-related macular degeneration (AMD) indication. 

The AMD market is massive and growing quickly. In 2018, the market generated nearly $7 billion in revenue. Moreover, expects the market to grow at a CAGR of 7.1%, bringing the value of the AMD market to more than $10 billion by 2024. So, it’s no surprise that Eylea, while relatively young, is already generating more than 60% of the company’s total revenue. 

Moreover, the company has an active partnership with Sanofi (SNY) that has the potential to generate incredible value. The two teamed up on Dupient, an eczema drug that has been the most successful in a handful of projects between the two companies. 

The two are also working on Libtayo, an immunotherapy that is expected to become a blockbuster out of the gate. The treatment is designed for cutaneous squamous cell carcinoma. Considering that cutaneous squamous cell carcinoma is the second most common form of skin cancer, this could be a big winner. 

All in all, with multiple drugs targeting high-value indications, it’s no wonder that investor interest in Regeneron Pharmaceuticals is high. This is a stock worth putting on your watch list. 

INmune Bio (INMB): Multiple High-Value Targets

INmune Bio is a clinical-stage immunotherapy company with quite a bit of potential. The company’s drugs harness the power of the body’s innate immune system to target some of the highest-value indications in the space. 

Most recently, the company released preliminary data from a clinical study of INB03, showing strong safety and tolerability among all patients and a more than 50% response rate in patients with varying forms of heavily-pretreated cancers. 

INB03 targets the solid tumor cancer market. The patients included in the data above had heavily-pretreated prostate cancer, colon cancer, and ovarian cancer. The prostate cancer market size is expected to grow to be worth $12 billion annually by 2025. The ovarian cancer market is expected to be worth $1.8 billion by 2026, and the colon cancer market is expected to grow to  be worth $11 billion by 2025. These are only three of several high value indications that come with the term “solid tumors.”

INmune Bio is also working to bring new therapeutic options to Alzheimer’s disease patients, with XPro1595 targeting neuroinflammation. This is believed to be a leading factor in the cause of Alzheimer’s and dementia. XPro1595 has already displayed some promise in a market that experts predict will grow to be worth $12.46 billion by 2026.

Finally, the company’s INKmune candidate targets residual disease. The drug enables the body’s NK cells to attack and eliminate residual disease. This is another massive market, with Grand View Research suggesting that the market could grow to be worth $2.4 billion annually by 2024.

With several irons in some pretty big fires, INmune Bio is a stock to pay close attention to.    

Exelixis (EXEL): Four Approved Products In High Value Indications Leading To Compelling Revenue Growth

Exelixis is no stranger to biotechnology. At the moment, the company has four approved drugs on the market. Primarily, Exelixis focuses on cancer therapies, with 75% of its drugs in the oncology space. These are Cabometyx, Cometriq, and Cotellic. The company also has a hypertension drug approved in Japan, known as Minnebro. 

Cabometyx, in my opinion, is by far the most important drug the company has. The treatment is approved as an option in advanced renal cell carcinoma (RCC). In fact, it’s growth in this indication that led to more than a 90% year-over-year revenue growth in 2018. 

The RCC market isn’t the only place that Exelixis and its flagship Cabometyx drug are likely to shine. In January, the FDA approved the treatment as an option for hepatocellular carcinoma, or HCC. This is the most common type of liver cancer, and the drug won approval for the indication in both the United States and Europe. In a market that’s growing at a CAGR of more than 5% and is expected to be worth $6.3 billion, Cabometyx has the potential to generate strong revenue ahead. Not to mention, more indications are likely ahead. 

With multiple approved therapies and Cabometyx having blockbuster potential, Exelixis is a stock that’s hard to ignore. 

Hemispherx BioPharma (HEB): Ampligen Is A Blockbuster In The Making

Hemispherx BioPharma has multiple drugs approved and under development. In fact, the company’s Ampligen product was the first to win approval for the ME/CFS indication, an indication it is approved for in Argentina. 

While that fact alone is impressive, it’s nothing compared to the future indications that Ampligen is likely to win. In fact, Hemispherx Bio recently released preliminary data from an ovarian cancer trial, showing strong safety, tolerability, and efficacy. 

The study, performed by the University of Pittsburgh Medical Center or UPMC, set the stage for the company to progress the drug through the development process for a market that’s expected to grow to be worth nearly $2 billion annually relatively soon. 

The drug is also being developed for several other oncology indications, including colorectal cancer, renal cell carcinoma, breast cancer, pancreatic cancer, and melanoma, in ranging phases of development. The combined market size of these indications gives Ampligen the potential to tap into tens of billions in market potential. 

With recent positive data and such a large market to be tapped into, Hemispherx BioPharma should be on your radar. 

Vertex Pharmaceuticals (VRTX): The Last Is Far From The Least

Vertex Pharmaceuticals is a cystic fibrosis giant. The company currently has three approved treatments, all of which address the underlying cause of cystic fibrosis. 

Importantly, the company has a virtual monopoly in the space, leading to consistent revenue growth and incredibly strong sales. In fact, in 2018, revenue climbed by around 22%, with earnings per share more than doubling. 

Generics are a long way off too. In fact, the company has United States patents on Kalydeco and Symdeko that will remain in effect until the year 2027. Orkambi will enjoy market exclusivity even longer, with patents that protect it through 2030.  

The company continues to develop further treatments for Cystic Fibrosis in an attempt to maintain its monopoly. In fact, the company is working on a triple-drug combination therapy that, if approved, could greatly expand its addressable market. 

Cystic Fibrosis is a massive market, and a continued monopoly in the space means a big opportunity. By 2025, the Cystic Fibrosis market is expected to be worth nearly $14 billion. That gives the company plenty of room for growth ahead. 

Final Thoughts

The biotech space is one that screams opportunity. Getting involved in companies that target high-value indications is a strategy that has the potential to yield strong rewards, making the stocks above ones that are well worth paying attention to. 

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