Biotech companies’ success in responding to the COVID-19 pandemic by rapidly developing COVID-19 medicines and vaccines exemplified the sector’s importance and garnered significant investor attention. Furthermore, the growing popularity of gene therapies and the increasing prevalence of chronic diseases worldwide have boosted the demand for blockbuster drugs developed by biotech companies…
And investors’ optimism surrounding the biotech space is evident in the iShares Biotechnology ETF (IBB) 19.9% return over the past year.
Favorable government regulations, coupled with the introduction of new and sophisticated products, and growing demand for synthetic biology, should keep driving the biotech industry’s growth. Indeed, the global biotechnology market is expected to reach $2.44 trillion in 2028, growing at a 15.8% CAGR.
Considering the industry’s promising growth prospects, we believe shares of biotechnology companies Genmab A/S (GMAB – Get Rating) and Bio-Techne Corporation (TECH – Get Rating) are well-positioned to deliver exceptional returns in the coming months. So, these stocks could be wise bets now.
Headquartered in Copenhagen, Denmark, GMAB researches, discovers and develops antibody therapeutics for cancer treatment. It has a diverse clinical and preclinical product pipeline and four antibody technologies, including DuoBody bispecific platform, HexaBody platform, DuoHexaBody platform, and HexElect platform.
Last month, GMAB announced that the European Commission (EC) had approved its daratumumab subcutaneous (SC) formulation, marketed as DARZALEX SC in the European Union, in combination with bortezomib, cyclophosphamide, and dexamethasone for the treatment of adult patients with newly diagnosed systemic light-chain (AL) amyloidosis.
Also, last month, GMAB and Bolt Biotherapeutics, Inc announced that they had entered a cancer research and development collaboration. The companies will combine Genmab antibodies and bispecific antibody engineering technologies with Bolt’s proprietary BoltbodyTM immune-stimulating antibody conjugate (ISAC) technology platform to discover and develop next-generation immune-stimulatory antibody-based conjugate therapeutics for cancer treatment.
For the first quarter, ended March 31, 2021, GMAB’s revenue rose 77.2% from its year-ago value to Kr.1.58 billion ($250.67 million). Its operating income increased 649.3% year-over-year to Kr.532 million ($84.35 million), while its net income grew 307.4% from the prior-year quarter to Kr.1.1 billion ($173.77 million). Its EPS grew 306.2% from the prior-year quarter to Kr.16.61 ($2.64).
The company’s EPS is expected to grow 566.4% year-over-year to $7.33 in its fiscal year 2021. Analysts expect GMAB’s revenue to increase 22.9% year-over-year to $1.56 billion next year. The stock has gained 25.6% over the past year and 26.1% over the past nine months.
GMAB’s POWR Ratings reflect this promising outlook. The company has an overall B rating, which translates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
GMAB has also rated a B for Sentiment and Value. Additionally, within the F-rated Biotech industry, it is ranked #26 of 495 stocks.
To see additional POWR Ratings for Growth, Stability, Quality, and Momentum for GMAB, click here.
TECH develops, produces, and distributes biotechnology reagents and devices for use in research and clinical diagnostics. Protein Sciences and Diagnostics and Genomics are the two business segments through which the Minneapolis, Minn., company operates.
Last month, TECH opened a…
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