2 Biotech Stocks to Buy for Outsized Gains

: GMAB | Genmab A/S ADR News, Ratings, and Charts

GMAB – Biotech companies have experienced exponential growth over the past year owing to their contribution to efforts to combat the COVID-19 pandemic. The rising demand for medicines and therapies for treating several other critical diseases and significant breakthroughs in developing customized drugs are expected now to boost the industry’s growth further. So, we believe fundamentally strong biotech stocks Genmab (GMAB) and Bio-Techne have plenty of upside potential. Read on.

Biotech companies’ success in responding to the COVID-19 pandemic by rapidly developing COVID-19 medicines and vaccines exemplified the sector’s importance and garnered significant investor attention. Furthermore, the growing popularity of gene therapies and the increasing prevalence of chronic diseases worldwide have boosted the demand for blockbuster drugs developed by biotech companies. And investors’ optimism surrounding the biotech space is evident in the iShares Biotechnology ETF (IBB) 19.9% return over the past year.

Favorable government regulations, coupled with the introduction of new and sophisticated products, and growing demand for synthetic biology, should keep driving the biotech industry’s growth. Indeed, the global biotechnology market is expected to reach $2.44 trillion in 2028, growing at a 15.8% CAGR.

Considering the industry’s promising growth prospects, we believe shares of biotechnology companies Genmab A/S (GMAB) and Bio-Techne Corporation (TECH) are well-positioned to deliver exceptional returns in the coming months. So, these stocks could be wise bets now.

Click here to checkout our Healthcare Sector Report for 2021

Genmab A/S (GMAB)

Headquartered in Copenhagen, Denmark, GMAB researches, discovers and develops antibody therapeutics for cancer treatment. It has a diverse clinical and preclinical product pipeline and four antibody technologies, including DuoBody bispecific platform, HexaBody platform, DuoHexaBody platform, and HexElect platform.

Last month, GMAB announced that the European Commission (EC) had approved its  daratumumab subcutaneous (SC) formulation, marketed as DARZALEX SC in the European Union, in combination with bortezomib, cyclophosphamide, and dexamethasone for the treatment of adult patients with newly diagnosed systemic light-chain (AL) amyloidosis.

Also, last month, GMAB and Bolt Biotherapeutics, Inc announced that they had entered a cancer research and development collaboration. The companies will combine Genmab antibodies and bispecific antibody engineering technologies with Bolt’s proprietary BoltbodyTM immune-stimulating antibody conjugate (ISAC) technology platform to discover and develop next-generation immune-stimulatory antibody-based conjugate therapeutics for cancer treatment.

For the first quarter, ended March 31, 2021, GMAB’s revenue rose 77.2% from its year-ago value to Kr.1.58 billion ($250.67 million). Its operating income increased 649.3% year-over-year to Kr.532 million ($84.35 million), while its net income grew 307.4% from the prior-year quarter to Kr.1.1 billion ($173.77 million). Its EPS grew 306.2% from the prior-year quarter to Kr.16.61 ($2.64).

The company’s EPS is expected to grow 566.4% year-over-year to $7.33 in its fiscal year 2021. Analysts expect GMAB’s revenue to increase 22.9% year-over-year to $1.56 billion next year. The stock has gained 25.6% over the past year and 26.1% over the past nine months.

GMAB’s POWR Ratings reflect this promising outlook. The company has an overall B rating, which translates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

GMAB has also rated a B for Sentiment and Value. Additionally, within the F-rated Biotech industry, it is ranked #26 of 495 stocks.

To see additional POWR Ratings for Growth, Stability, Quality, and Momentum for GMAB, click here.

Bio-Techne Corporation (TECH)

TECH develops, produces, and distributes biotechnology reagents and devices for use in research and clinical diagnostics. Protein Sciences and Diagnostics and Genomics are the two business segments through which the Minneapolis, Minn., company operates.

Last month, TECH opened a new facility in Dublin, Ireland. With this facility, the company aims to boost its growth by expanding its commitment to support the broader life sciences industry in Europe.

Also, last month, TECH and Catamaran Bio announced an expansion of their collaboration in cell engineering and cell process technologies for Catamaran’s CAR-NK cell therapy products. This will enable the company to strengthen its position in the cell therapy space.

TECH’s net sales increased 25.1% year-over-year to $243.55 million in the third quarter ended March 31, 2021. Its operating income grew 43.6% from its  year-ago value to $68.63 million. TECH’s net income increased 25.7% year-over-year to $45.78 million. In addition, its EPS increased 21.7% year-over-year to $1.12 over this period.

A  $6.47 consensus EPS estimate for the current year represents a 42.2% increase year-over-year. Furthermore, TECH has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. The $917.56 million consensus revenue estimate for the current year represents a 24.2% increase from the same period last year. The stock has gained 74.8% over the past year and 48.7% year-to-date.

TECH’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our POWR Ratings system. TECH also has a B grade for Quality and Sentiment. The stock is ranked #17 of 495 stocks in the same industry.

Beyond the POWR Ratings grades we have just highlighted, one  can see additional TECH ratings for Growth, Value, Momentum, and Stability here.

Click here to checkout our Healthcare Sector Report for 2021

GMAB shares were trading at $43.66 per share on Tuesday morning, down $0.42 (-0.95%). Year-to-date, GMAB has gained 7.38%, versus a 18.04% rise in the benchmark S&P 500 index during the same period.

About the Author: Pragya Pandey

Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
GMABGet RatingGet RatingGet Rating
TECHGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com

Is This REALLY a Bull Market?

The S&P 500 (SPY) keeps making record highs...but does that mean that market conditions are truly bullish? 44 year investment veteran shines a light on how hollow recent gains are as they are only accruing to a handful of stocks with most investors searching high and low for stock market gains. Read on for more...

Unveiling Adobe (ADBE) Q2 Earnings: What Lies Ahead for Investors?

Software giant Adobe Inc. (ADBE) has released its second-quarter earnings, revealing double-digit growth in both revenue and profits. Yet, concerns arise around the complexities of navigating growth in the face of advancing AI technologies. Let’s analyze ADBE’s recent performance and assess key fundamentals to uncover what lies ahead for investors…

3 AI Stocks to Invest in for the Next Technological Revolution

The AI market is experiencing a significant growth trajectory, driven by widespread application across various industries. Hence, it could be wise to invest in top AI stocks, Alphabet (GOOGL), Meta Platforms (META), and Alibaba Group Holding (BABA) for the next technological revolution. Read more...

Analyzing Broadcom’s (AVGO) Q2 Earnings: Worth Investing?

Driven by a surge in demand for its AI products, Broadcom (AVGO) reported robust earnings in its latest quarterly results, exceeding expectations on both top and bottom lines. However, is the stock’s recent announcement of a 10-for-1 stock split worth investing in? Keep reading to find out…

Bullish or Bearish Stock Set Up?

The S&P 500 (SPY) record highs sounds pretty darn bullish on the surface. Yet as we dig below the surface there are some curious signals that point more Risk Off. This is especially true as we come into the next Fed meeting after a round of data that points to inflation still being too high...only further delaying the first rate cut. What does this all mean for stocks from here? Steve Reitmeister offers his latest views on the market outlook along with a preview of his top picks to stay on step ahead of the market. Read on for more...

Read More Stories

More Genmab A/S ADR (GMAB) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All GMAB News