4 Small-Cap Biotechs to Consider if Gilead Isn’t Doing it For You
March 21, 2017
By Mark Terry, BioSpace.com Breaking News Staff
There’s little doubt that Gilead Sciences is having a rough year. The company’s one-year stock underperformed the Zacks classified Medical-Biomedical and Genetic industry ranking, losing 24.8 percent compared to an overall industry gain of 3 percent. Although the company’s HIV franchise is holding its own, its Hepatitis C (HCV) franchise is getting beat up.
Not that it’s a zero-sum game where if you invest in Gilead you can’t or won’t invest in other companies. But Zacks Equity Research suggests four small-cap biotech stocks to invest in other than Gilead.
1. Celsion Corporation
Based in Lawrenceville, NJ, Celsion Corporation focuses on chemotherapy and gene-mediated immunotherapy, as well as RNAi engineering. Its lead product candidate is ThermoDox, a heat-activated liposomal encapsulation of doxorubicin, currently being evaluated in a Phase III clinical trial for primary liver cancer, as well as a Phase II trial in chest wall breast cancer.
Zachs says, “Immuno-oncology is one of the most lucrative and highly sought after therapeutic areas. Shares of Celsion has outperformed the Zacks categorized Medical/Biomedical Genetics industry in the last one month.”
Celsion Corporation is currently trading for $0.28.
2. Strongbridge Biopharma
Headquartered in Trevose, Penn., Strongbridge Biopharma focuses on rare diseases. The company’s Keveyis is the first and only drug approved by the U.S. Food and Drug Administration (FDA) for hyperkalemic, hypokalemic, and related variants of Primary Periodic Paralysis, an ultra-rare neuromuscular disorders. It has U.S. orphan drug status through August 7, 2022.
Strongbridge has COR-003 (levoketoconazole) for the treatment of endogenous Cushing’s syndrome, and COR-005, a next-generation somatostatin analog (SSA) for the treatment of acromegaly, in its pipeline. Both compounds have orphan designation from the FDA and the European Medicines Agency (EMA).
Zacks writes, “The stock carries a Zacks Rank #2 and has outperformed the Zacks categorized Medical/Biomedical Genetics Industry year to date.”
Strongbridge is currently trading for $4.50. Shares have traded all over the place the last year. On May 3, 2016, shares traded for $6.01, dropped to $3.50 on June 27, 2016, rose again to $5.51 on September 23, 2016, then dropped to $2.20 on February 13, 2017.
3. Athersys
Based in Cleveland, Ohio, Athersys is developing MultiStem, a patented, adult-derived off-the-shelf stem cell product platform for multiple diseases. Its focus is in neurological, cardiovascular, inflammatory and immune diseases. The company has six clinical stage programs, including a pending Phase III study in ischemic stroke. It has an ongoing Phase II trial for the treatment of damage from acute myocardial infarction, and an exploratory clinical trial in Acute Respiratory Distress Syndrome, as well as several others.
Zacks writes, “The company currently carries a Zacks Rank #2.”
Athersys is currently trading for $1.14.
4. Synthetic Biologics
Headquartered in Rockville, Md., Synthetic Biologics has two lead candidates, SYN-004 (ribaxamase) to prevent C. difficile infection and antibiotic-associated diarrhea, and SYN-010 to treat irritable bowel syndrome with constipation (IBS-C). Both are in Phase II trials, although both are close to moving into Phase III trials.
Synthetic Biologics currently holds a Zacks Rank #2.
The company’s is currently trading for $0.70.