These 4 Biotech Stocks Have the Right Quarterly Mix
Let's check out several pharma names I've been tracking as they post solid earnings.
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A flood of second-quarter earnings results hit the wires this week, and some were biotech names I've covered frequently. Let's check out several I'm watching:
Harrow Inc. HROW. This is a name I have mentioned frequently on Doug Kass’ Daily Diary this year. The stock was one of the biggest winners in the market on Thursday after the company blew top- and bottom-line expectations with its second-quarter results. The stock advanced more than 50% on the day. Its ocular anesthetic Iheezo, which was approved in the spring of 2023, continues to gain sales traction and order volume was up 98% subsequentially from the first quarter. Vevye, which was acquired last summer for dry eye disease, saw better than 200% subsequential growth. Overall, revenues rose 46% on a year-over-year basis to $48.9 million, beating the consensus estimate by over $6 million. The company is approaching profitability significantly faster than expected. I wouldn’t chase this massive rally, but would add to my position via covered call orders on any decent dip in the shares.
Exelixis, Inc. EXEL. This mid-cap oncology name had an impressive move, trading up 13% on Wednesday after disclosing quarterly earnings after the bell on Tuesday. The company easily beat the top- and bottom-line consensus and also boosted fiscal 2024 revenue guidance.
Dynavax Technologies DVAX . This one also gained nicely. Dynavax’s top line was a bit lite, but its flagship product Heplisav-B saw sales rise 24% on a year-over-year basis. This "best of breed" hepatitis B vaccine continues to garner share in a growing market. Market share rose to 42% from 39% in the same period a year ago. Management continues to project that Heplisav–B should have more than half of what is expected to be an $800 million annual market by 2027. In addition, the company continues to advance several vaccine candidates within its pipeline. The most promising is for an adjuvant to be used as a more effective vaccine for shingles. Top-line results from a mid-stage study should be out in the second half of 2025. The company also sits on a net cash hoard of just north of $500 million and has a $1.4 billion market capitalization after the post earnings rise this week.
Supernus Pharmaceuticals SUPN. I have not highlighted for some time this small biopharma. This is somewhat of an inflection year for the company as it continues to digest a couple of recent acquisitions. New products powered a 24% rise in revenues in the second quarter in results that were posted Tuesday. This led to a significant earnings beat and management bumping up full year guidance.
At the time of publication, Jensen was long DVAX, EXEL, HROW and SUPN.
