Analysts Hunt for
Undervalued Biotech Stocks - Citius Pharmaceuticals (NASDAQ: $CTXR) Jazz Pharmaceuticals (NASDAQ: $JAZZ) CRISPR (NASDAQ: $CRSP) Krystal Biotech (NASDAQ:
$KRYS)
July
17, 2024 - Investorideas.com,
a go-to investing platform releases the first of a two-part series looking at
biotech/biopharma stocks, featuring Citius Pharmaceuticals, Inc. (Nasdaq: CTXR), a late-stage biopharmaceutical
company dedicated to the development and commercialization of first-in-class
critical care products. The Company's diversified pipeline includes two
late-stage product candidates.
Looking
at the sector, Morningstar
reported in June, “Biotech had a strong start to 2024, driven by an uptick
in M&A and every indication that interest rates would begin to decline,”
says Morningstar strategist Karen Andersen. “However, the second quarter has
been more mixed for the industry, as rates look to be stabilizing rather than
declining, given persistent (but improving) inflation. Higher rates tend to
make waiting for uncertain returns on biotech investments less attractive.”
“We
still see tailwinds for the industry going forward. Smaller-cap names are still
targets for acquisitions by bigger biopharma firms, and a wave of acquisitions
has continued since late last year, particularly focused on oncology and
immunology,” she says. “We think obesity acquisitions are likely going forward,
as big biopharma can bring development and commercialization expertise to
multiple programs in midstage trials at small biotechs. Second, on a more
fundamental level, new technologies and launches in new therapeutic areas are
poised to boost productivity and drive biotech performance.”
This week, EF
Hutton initiated
coverage of Citius Pharmaceuticals (Nasdaq:CTXR) with a Buy recommendation with a price target of $6.00. Analyst
Jason Kolbert sees the stock as low risk – high reward based on their two late
stage therapeutics, Mino-Lok and LYMPHIR. He also notes that a planned IPO for
LYMPHIR this summer, in addition to an early August PDUFA should be catalysts
to unlock value for Citius.
Paid news
dissemination for Citius Pharmaceuticals.
Read this article,
featuring CTXR in full at: https://www.investorideas.com/news/2024/biotech/07171Undervalued-Biotech-Stocks.asp
Mino-Lok
(MLT), a novel antibiotic lock solution that combines minocycline, ethanol and
edetate disodium, is designed to treat patients with catheter-related blood
stream infections. Citius licensed Mino-Lok from an affiliate of The University
of Texas MD Anderson Cancer Center. Mino-Lok is designed to offer an
alternative to removing and replacing a central venous catheter (CVC), which
may lead to a reduction in serious adverse events and cost savings to the
healthcare system. If approved, Mino-Lok would be the first and only
FDA-approved treatment that salvages central venous catheters that cause
central line-related blood stream infections.
LYMPHIR is a
recombinant fusion protein that combines the interleukin-2 (IL-2) receptor
binding domain with diphtheria toxin fragments. The agent specifically binds to
IL-2 receptors on the cell surface, causing diphtheria toxin fragments that
have entered cells to inhibit protein synthesis. In 2011 and 2013, the FDA
granted orphan drug designation to LYMPHIR for the treatment of PTCL and CTCL,
respectively. In 2021, denileukin diftitox received regulatory approval in
Japan for the treatment of CTCL and peripheral T-cell lymphoma (PTCL).
Subsequently in 2021, Citius acquired an exclusive license with rights to
develop and commercialize LYMPHIR in all markets except for Japan and certain
parts of Asia.
In recent
news from the company, Leonard Mazur, Chairman and CEO of
Citius stated, "Our solid execution since the beginning of the year sets
us up for potentially transformative catalysts in the coming months. Mino-Lok's
strong Phase 3 topline results support its potential to become part of the
standard of care for treating catheter-related bloodstream infections. Mino-Lok
would also have a first and only advantage in a market with no approved or
investigational products for salvaging infected central venous catheters. For
LYMPHIR™, the FDA is currently reviewing our Biologics License Application,
with an expected decision on August 13th. We are preparing for near-term
commercialization of LYMPHIR if approved. These near-term catalysts should
enable the company to optimize its current cash runway, future cash needs, as
well as create potential non-dilutive cash opportunities.”
In its most
recent update, the company also discussed the pending IPO, reporting, “Citius plans to merge a wholly owned subsidiary with TenX
Keane Acquisition (Nasdaq:TENK) to form publicly listed company, Citius
Oncology, Inc. The transaction is pending review by the U.S. Securities and
Exchange Commission (SEC) and TENK shareholder approval as well as contractual
and customary closing conditions.”
Looking at
some of Morningstar’s
top biotech picks, they report, “These were the most undervalued biotech stocks
that Morningstar’s analysts cover as of June 5, 2024: Intellia Therapeutics ,Crispr Therapeutics ,Royalty
Pharma ,Jazz Pharmaceuticals, Moderna, Ionis Pharmaceuticals, and Incyte.
Jazz
Pharmaceuticals (NASDAQ: JAZZ), with its diverse portfolio of marketed medicines, including
leading therapies for sleep disorders and epilepsy, and a growing portfolio of
cancer treatments made their list with them saying, ”Jazz Pharmaceuticals is
next on our list of affordable biotech stocks. Strong commercial launches for
several products have continued to be Jazz’s primary growth driver. Jazz
Pharmaceuticals looks undervalued as it trades 44% below our fair value
estimate of $187 per share...”
CRISPR
Therapeutics AG (NASDAQ: CRSP), a biopharmaceutical company focused
on creating transformative gene-based medicines for serious diseases, say it is
“Among our best biotech stocks to buy now, Crispr proved most resistant to the
recent industry volatility. The company continues to possess a sizable, mostly
early-stage pipeline, and it invests heavily in research and development.”
CRISPR also made
the Insider
Monkey top ten biotech stocks list, which noted, “CRISPR Therapeutics AG
(NASDAQ: CRSP) is one of the more revolutionary medical companies since it is one
of the few and one of the earliest players in the genetic sequencing industry.
Estimates suggest that the market for CRISPR gene editing technologies can grow
at a compounded annual growth rate of 22.3% between 2022 and 2027 to be worth
an estimated $9.2 billion at the end of the forecast period. CRISPR
Therapeutics AG's revenue was $370 million in 2023, leaving it with quite a bit
of room to grow. Key to CRISPR Therapeutics AG's success though is the broader
biotechnology industry's ability to commercialize treatments with its
technology. These led to royalty payments, and one such payment came in Q1 from
pharma giant Vertex Pharmaceuticals. Vertex's Casgevy is one of the few sickle
cell disease treatments in the world, and its maker paid CRISPR Therapeutics AG
$170 million in 2023 as a milestone payment. CRISPR Therapeutics AG, is
eligible for another $130 million, and will also receive royalties from future
treatments developed with its technology.”
For investors
getting a sense of the rankings, According
to IBD, “The industry group has a Relative Strength Rating of
83, which has improved from 74 just a week ago, according to IBD Digital. This
means the industry group now ranks in the top 17% of all industry groups in
terms of 12-month performance.”
On June 11th,
IBD
reported, “Krystal Biotech (NASDAQ:KRYS) stock cleared an important technical benchmark, seeing its
Relative Strength (RS) Rating jump into the 90-plus percentile with an
improvement to 91, up from 88 the day before.”
On June 20th,
TimesSquare Capital Management, an equity investment management company,
released its ‘US Small Cap Growth Strategy’ first-quarter
2024 investor letter. TimesSquare Capital US Small Cap
Growth Strategy highlighted stocks like Krystal Biotech, Inc. (NASDAQ:
KRYS), in the first quarter 2024 investor letter. Krystal
Biotech, Inc. is a commercial-stage biotechnology company that develops genetic
medicines for patients with rare diseases. The one-month return of Krystal
Biotech was 5.15%, and its shares gained 43.27% of their value over the last 52
weeks. On June 20, 2024, the stock closed at $171.21 per share with a market
capitalization of $4.889 billion.
Krystal
Biotech joined the S&P 600 Index on June 24th.
Biotech stocks
took center stage during Covid and as the sector continues to reinvent the
future of health, they are still on the must watch list for analysts searching
for an undervalued opportunity,
Research and find more biotech stocks
at Investorideas.com
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