Top Biotech Stocks for Q3 2022

The biotechnology business includes companies that develop drugs and diagnostic applied sciences for the treatment of diseases and medical conditions. These products must pass rigorous, costly and time-consuming trials before they are likely to gain approval from the United States Food and Drug Administration (FDA). That means buyers could wait years to find out if a below-growth drug will pay off or not. The business includes small start-ups with the latest traction as well as giant, well-established companies that intend to develop a range of medicines and applied sciences. Many biotech companies have completely shifted focus or added COVID-19 vaccines and coatings to their product portfolio.

Early-stage biotech companies are susceptible to wild swings in revenue as they go from virtually no revenue to a strong revenue stream as soon as a drug is licensed or a partnership with another company is struck. This means that advancement numbers should be seen more as indicating that the company has achieved some form of breakthrough related to where it was with research, corporate partnerships or other moments in the development cycle. business life, rather than the way you usually would. consider progress.

Over the past year, biotechnology stocks, represented by the iShares Biotechnology (IBB) ETF, posted a total return of -21.0%, below the Russell 1000 total return of -14.3%. These market efficiency figures and all statistics in the tables below are as of June 17, 2022.

Here are the top biotech stocks with one of the best values, the fastest progress, and probably the most momentum.

These are the biotech stocks with the lowest 12-month price-to-earnings (P/E) ratio. Since income can be returned to shareholders in the form of dividends and redemptions, a low P/E ratio indicates that you are paying less for every dollar of income generated.

The hottest biotech stocks
Value ($) Market capitalization ($B) 12 month price/earnings ratio
uniQre SA (QURE) 13.54 0.6 2.0
BioNTech SE (BNTX) 129.15 31.4 2.2
ITeos Therapeutics Inc. (ITOS) 18.52 0.7 2.4

Source: YCharts

  • uniQre NV: uniQure NV is a genetic medicine company based in the Netherlands. It develops point therapies for people with many genetic diseases, including hemophilia B and Huntington’s disease.
  • BioNTech SE: BioNTech SE is a Germany-based immunotherapy company focused on developing therapies for most cancers and various serious conditions. The company, in collaboration with Pfizer Inc., has developed a vaccine against COVID-19. On June 17, the FDA cleared the Pfizer-BioNTech COVID-19 vaccine for emergency use in people 6 months to 4 years old. Previously, the vaccine was licensed for people 5 years of age and older.
  • ITeos Therapeutics Inc.: ITeos Therapeutics is a clinical-stage biopharmaceutical company. It aims to develop immuno-oncological therapies for most people with cancer.

These are the highest shares of biotech, ranked by a progress model that scores companies based on a 50/50 weighting of their most recent quarterly progress in one-year equity revenue on the other (YOY) and most recent. quarterly increase in earnings per share (EPS) year-on-year. Sales and profits are critical to the success of a business. As such, rating companies by a single indicator of progress makes a rating vulnerable to accounting misstatements in that quarter (equivalent to tax law adjustments or restructuring awards) that will render either one unrepresentative. of the business in general. Due to the fad nature of biotech companies, especially in the early stages, profits and revenue can experience giant spurts of progress when a deal is struck or a drug is licensed, so we don’t rule out outliers with over 2500% progress as we sometimes do.

Fastest Rising Biotech Stocks
Value ($) Market capitalization ($B) EPS development (%) Revenue development (%)
Exelixis Inc. (EXEL) 17.57 5.6 4,110 31.7
Beam Therapeutics Inc. (BEAM) 32.23 2.3 N/A (see cabinet description) 140,400
United Therapeutics Corp. (UTHR) 217.67 9.9 724.6 21.8

Source: YCharts

  • Exelixis Inc. : Exelixis is a biotechnology company focused on oncology. It strives to find and develop drugs for hard-to-treat cancers. The company announced cash results for the first quarter of its fiscal year 2022 in early May, the three-month period ending March 31, 2022. Internet revenue grew nearly 43 times on the back of a 31.7 % compared to the previous year. trimester. Exelixis’ full labor bills were down from the prior year quarter, which helped boost internet revenue.
  • Beam Therapeutics Inc.: Beam Therapeutics is a biotechnology company focused on cultivating precision genetic drugs using its applied gene editing and gene delivery sciences. Since the company’s EPS was negative in the last quarter, an EPS progression fee could not be calculated in the office above.
  • United Therapeutics Corp. : United Therapeutics is a biotechnology company focused on growing pharmaceutical therapies in addition to applied sciences that improve the delivery of transplantable organs. The company announced cash results for the first quarter of fiscal 2022, which ended March 31, 2022, in early May. % year-on-year. Entire labor bills were down from the prior year quarter, which helped spice up Internet revenue.

These are the biotech stocks with the best overall return over the past 12 months.

Biotechnology shares with the most momentum
Value ($) Market capitalization ($B) Total return over 12 months (%)
Sierra Oncology Inc. (SRRA) 54.92 1.3 198.5
CTI BioPharma Corp. (ICTC) 5.80 0.6 142.7
BELLUS Wellness Inc. (BLU) 7.69 0.8 126.8
Russell 1000 N / A N / A -14.3
iShares Biotechnology ETF (IBB) N / A N / A -21.0

Source: YCharts

  • Sierra Oncology Inc.: Sierra Oncology is a late-stage biopharmaceutical company focused on growing targeted therapies to treat rare types of most cancers. The company announced in mid-April that it had agreed to be acquired by GlaxoSmithKline PLC. The transaction, which is valued at approximately $1.9 billion, is expected to close by the end of the third quarter of 2022.
  • CTI BioPharma Corp. : CTI BioPharma is an industrial biopharmaceutical company. It aims to purchase, develop and commercialize targeted therapies for blood-related cancers.
  • BELLUS Wellness Inc. : BELLUS Wellness is a clinical-stage biotechnology company. It aims to develop therapies to treat persistent cough and different hypersensitivity problems.

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