Several pharmaceutical companies awaiting a decision from U.S. authorities on their drug applications are set to get them this month.
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These decisions can help boost both their revenue and stock performance — hence, they are carefully monitored by investors. This means that these decisions present a good buying opportunity for healthcare stocks. But which of these stocks are worth buying?
This article focuses on three such companies, looks at the drugs that are set to get a decision from the U.S. Food and Drug Administration (FDA), what these medications and treatments do, and whether Wall Street currently believes their stocks are worth buying.
Compare today’s three picks using the chart below. Be sure to click on any ticker to thoroughly research the stock before you decide whether to add it to your portfolio.
Regeneron Pharmaceuticals, Inc. (REGN) – Regeneron is a New York-based biotech company that specializes in discovering, developing, and making medicines for diseases such as eye disorders, cancer, inflammatory conditions, and rare genetic illnesses.
The pharma company is known for its drugs such as Eylea for retinal disease and Dupixent for eczema and asthma. The FDA is set to decide on its approval application for Eylea HD by November 30th. This medication is a biologic — that is, it is made from living cells — designed to treat various eye diseases. It works by blocking a protein that causes abnormal blood vessel growth in the eyes.
Genmab A/S (GMAB) – Genmab is a Danish biotech company focused on developing antibody-based treatments for cancer and autoimmune diseases — that is, health conditions where the immune system mistakenly attacks its own healthy cells.
The Copenhagen-based company is the brain behind medications such as Darzalex, used to treat bone-weakening multiple myeloma, and Tivdak for treating cervical cancer. The FDA is set to make a decision on its medication Epcoritamab, a biologic designed in partnership with American pharma company AbbVie (ABBV) to treat B-cell lymphomas, a type of blood cancer.
Arrowhead Pharmaceuticals (ARWR) – Arrowhead is a California-based biopharma company that designs drugs to block disease-causing proteins in the body. It develops treatments for liver diseases, heart problems, and lung inflammation.
Arrowhead, which recently signed a $200 million deal with the Swiss pharma giant Novartis (NVS), focuses on licensing its treatments to larger pharma companies for commercialization. U.S. authorities’ decision on its drug Plozasiran is expected by November 18. The drug is a therapy designed to lower fat levels in the blood, thereby preventing health issues such as heart problems, stomach pain, and swelling of the pancreas.
Which Stock Offers the Most Upside?
All three stocks currently hold a Moderate Buy consensus rating from Wall Street analysts. However, Genmab’s shares comfortably lead the group, offering up upside potential of about 34% at an average GMAB price target of $41 per share.
Arrowhead follows with approximately 11% upside at an average ARWR price target of $44.71 per share. Regeneron comes last with an average REGN price target of $749.43 that offers about 7% upside.
Check out more companies with upcoming FDA drug application decisions.