In the midst of endless bitcoin drama, upcoming launch of CME BTC futures, and the holiday season, it’s been very difficult for many investors to stay on track. Many investors opt for seasonal stocks that should fluctuate within the next couple of months until the beginning of next earnings season. However, at least for the time being, I’m sticking to pharma equity analysis and have prepared a list of a few stocks that I am feeling festive about and wouldn’t mind finding in my christmas stockings.
Denali Therapeutics ($DNLI, Nasdaq):
With a market capitalization of $12.85 billion, Denali Therapeutics stands out as a biotechnology company that is firmly committed in tackling neurodegenerative diseases. The $250m IPO launched on Friday with an entry of $18 per share, and is now trading at $21.45. The company currently has no publicly approved drug patents, and they are in early stages of development. Trying to produce a drug that will directly break the blood-brain-barrier and can identify the genetic drivers that impact neurodegenerative diseases. Currently this is a largely underdeveloped area of biotechnology and medicine and the company is still considered an “emerging growth company”. I believe that it would be best to wait out the remainder of the week, monitoring volume changes before entering a long position. Link to DNLI SEC filings. Long $DNLI.
Pfizer Inc. ($PFE, NYSE):
As far as large cap pharmaceuticals is concerned it’s hard to forget about Pfizer. The company has a diversified portfolio of products generating outstanding revenue in the midst of heavy competition. Recently there have been a few interesting developments regarding Pfizer’s research and production. Firstly, 2018 will see Viagra being sold OTC in the U.K., which is expected to significantly impact European earnings for the company. Secondly, Pfizer is branching out further into oncology. The company revealed promising results for a phase III study on the impact of their product Talazaparib on late-stage breast cancer. The study trumped AstraZeneca’s PARP inhibitor study, which was released earlier this year. Pfizer could stand to make big plays next year in oncology. Long $PFE.
Gilead Sciences Inc. ($GILD, Nasdaq):
The stock has been riding a downwards trend for the last couple of months and the company has just acquired Kite Pharmaceuticals, an immunotherapy oncological company. So far the company has delivered years of poor revenue, but in the process has also acquired quite a number of companies that are aimed to payout in the long run and have been covering their acquisitions with steady cash flows. The Kite Pharma acquisition this year generate a huge spike in stock price as investors rejoiced that the firm will be looking at move revenue, but we will see the fruits of that merit in 2018. Additionally, the company has stated that it is open for more acquisitions going into 2018, and as a result of the new tax plan Gilead now stands to save a lot more money on their M&A deals which should help boost revenue and perhaps investor consensus. Long $GILD.