Eight months after the arrival of Pfizer Inc.’s (PFE) COVID-19 vaccine, which was the first vaccine to receive the FDA’s emergency use authorization (EUA) and which has helped reduce the pandemic’s intensity jointly with other vaccines, the virus’ Delta variant has been spreading rapidly across several parts of the world. Five U.S. states recently broke records for the average number of daily new COVID-19 cases.

But equally worrisome, some studies suggest that COVID-19 infection can lead to long-haul symptoms even for people that have been vaccinated. Consequently, several biotech companies have been working on therapies to combat  the lingering effects of the virus.

Humanigen, Inc. (HGEN) and AIM ImmunoTech Inc. (AIM) are two lesser-known biotech companies that are making significant progress in devising solutions to fight COVID-19’s long-term effects. So, we think it could be wise to add these two stocks to one’s watch list now. Wall Street analysts expect their shares to more than double in price in the near term.

Click here to checkout our Healthcare Sector Report for 2021

Humanigen, Inc. (HGEN)

Burlingame, Calif.-based clinical stage biopharmaceutical company HGEN develops immuno-oncology and immunology monoclonal antibodies. The company is focused primarily on developing its lead product candidate, lenzilumab, a monoclonal antibody designed to target and neutralize human granulocyte-macrophage colony-stimulating factor (GM-CSF) and prevent outcomes related to COVID-19.

Last month, HGEN announced it has applied to the FDA for emergency use authorization (EUA) for its prospective treatment for hospitalized COVID-19 patients, lenzilumab. The drug met its primary endpoint in Phase 3 LIVE-AIR trials when it showed a 1.54-fold relative improvement in the likelihood of survival without ventilation (SWOV).

HGEN’s net loss for the second quarter (ended June 30, 2021) came in at $70.80 million compared to $24.02 million in the year-ago period. The increase in its net loss was due primarily to a rise in total expenses. However, its license revenue came in at $1.04 million. In addition, its cash and cash equivalents and current assets for the period ended June 30, 2021, came in at $120.54 million and $121.64 million, respectively, versus  $67.74 million and $68.21 million for the period ended December 31, 2020.

Analysts expect HGEN’s revenue and EPS to increase 50.8% and 360.3%, respectively, year-over-year to $410.93 million and $3.36 in its fiscal year 2021. Over the past nine months, the stock has gained more than 87% in price to close yesterday’s trading session at $15.43. Furthermore,  Wall Street analysts expect the stock to hit $32.40 in the near term, which indicates a potential 110% upside. All five analysts that have rated HGEN rated it a Buy.

AIM ImmunoTech Inc. (AIM)

AIM is an immuno-pharma company that is focused on researching and developing therapeutics to treat multiple types of cancers, viruses, and immune-deficiency disorders. The company’s flagship products include Ampligen, a drug of macromolecular ribonucleic acid molecules to treat chronic fatigue syndrome (CFS), and Alferon N Injection. AIM is based in  Ocala, Fla.

On July 9, AIM signed a contract to sponsor a Phase 2a Human Challenge Trial to test Ampligen as a potential intranasal antiviral therapy using a human Rhinovirus hRV (common cold virus) and Influenza. A successful Phase 2a study could also establish Ampligen as a possible prevention against future viral variants and future novel respiratory viruses for which there are no current therapies and known viruses such as SARS-CoV-2, which causes COVID-19.

For the second quarter ended June 30, 2021, AIM’s net loss increased 74.4% year-over-year to $5.88 million. However, the company’s research and development expenses decreased 10% year-over-year to $1.32 million. Its total assets came in at $66.72 million for the period ended June 30, 2021, versus  $64.58 million for the period ended December 31, 2020. Also,  its cash, cash equivalents, and marketable securities were  $57.30 million for the period ended June 30, 2021, compared to $54.40 million for the period ended December 31, 2020.

AIM’s revenue is expected to increase 872.2% year-over-year to $350,000 for the quarter ending September 30, 2021. Its EPS is expected to grow 26.7% this year. Also, it surpassed the Street’s EPS estimates in each of the trailing four quarters. The stock’s price has soared 7.8% year-to-date to close yesterday’s trading session at $1.93. Wall Street analysts expect the stock to hit $5 in the near term, indicating a potential 159.1% upside. The sole analyst that has rated AIM rated it a Buy.

Click here to checkout our Healthcare Sector Report for 2021

HGEN shares fell $0.18 (-1.17%) in premarket trading Thursday. Year-to-date, HGEN has declined -12.86%, versus a 17.35% rise in the benchmark S&P 500 index during the same period.

About the Author: Manisha Chatterjee

Since she was young, Manisha has had a strong interest in the stock market. She majored in Economics in college and has a passion for writing, which has led to her career as a research analyst. More...

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