The biotech industry is known to be a high-risk high-reward industry. The Biden administration’s intention to enact legislation to lower drug prices was not well-received by biotech companies. However, governments and businesses have been making robust investments to encourage research and development in the biotech space.
Increasing demand for biotech applications and solutions across various end-user industries such as food, agriculture, and healthcare, plus growing demand for synthetic biology are expected to help boost the industry’s growth. According to a Research and Market’s report, the global biotechnology market is expected to grow at a CAGR of 8.57% over the next five years.
Amid this backdrop, quality biotech stocks Leap Therapeutics, Inc. (LPTX) and Corvus Pharmaceuticals, Inc. (CRVS), which have surged more than 100% last month, could be good additions to your portfolio.
Leap Therapeutics, Inc. (LPTX)
Biopharmaceutical company LPTX acquires and develops therapies to treat cancer. The company mainly develops targeted and immuno-oncology therapeutics. Its DKN-01 is an advanced humanized monoclonal antibody targeting the Dickkopf-1 (DKK1) protein.
On September 16, 2021, LPTX announced the presentation of updated positive data from the first-line cohort of the DisTinGuish study. Samuel Klempner, Member of the Faculty at Massachusetts General Hospital Cancer Center and Harvard Medical School, said, “Taken together, these are promising results for the combination therapy of DKN-01 with tislelizumab and chemotherapy in first line patients with gastric or gastroesophageal junction cancers.”
LPTX’s license revenue remained flat at $375,000 for the fiscal second quarter that ended June 30, 2021, compared to the prior year. The company’s $0.12 loss per share also remained the same. However, its total liabilities and stockholders’ equity came in at $37.94 million for the period that ended June 30, 2021, compared to $54.37 million for the period that ended December 31, 2020. In addition, its cash and cash equivalents at the beginning of the period for the six months that ended June 30, 2021, came in at $52.07 million, compared to $3.89 million for the six months that ended June 30, 2020.
For fiscal 2021, analysts expect LPTX’s revenue to increase 87.3% year-over-year to $2.81 million. Its EPS is expected to increase 25.4% year-over-year this year. The stock has soared 123.8% over the past three months and 137.8% in September to close yesterday’s trading session at $3.58.
Corvus Pharmaceuticals, Inc. (CRVS)
Clinical stage biopharmaceutical company CRVS develops and commercializes immuno-oncology therapies. Its lead product candidate is CPI-006, an anti-CD73 monoclonal antibody, in Phase I/Ib clinical trial. The company also develops CPI-818, a covalent inhibitor of ITK, which is in Phase I/Ib clinical trial.
On August 2, 2021, Richard A. Miller, M.D., Co-founder, President and CEO of CRVS, said, “We believe mupadolimab is well-positioned to improve patient outcomes based on its dual mechanism of inhibiting immunosuppressive adenosine and enhancing antibody responses to viruses, which have been shown to cause certain cancers.”
CRVS’ total assets came in at $109.39 million for the period that ended June 30, 2021, compared to $85.53 million for the period ended December 31, 2020. Its other assets came in at $3.62 million compared to $2.4 million for the same period. Its cash, cash equivalents, and marketable securities came in at $66.46 million, compared to $44.26 million in the prior-year period.
Analysts expect CRVS’ EPS to grow 21.2% year-over-year in the current quarter ending September 30, 2021. Over the past three months, the stock has gained 77.1% to close yesterday’s trading session at $4.8. Also, it has gained 117.1% in September.
Want More Great Investing Ideas?
LPTX shares were trading at $3.58 per share on Tuesday afternoon, down $0.00 (0.00%). Year-to-date, LPTX has gained 59.11%, versus a 17.48% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...
More Resources for the Stocks in this Article
|Ticker||POWR Rating||Industry Rank||Rank in Industry|
|LPTX||Get Rating||Get Rating||Get Rating|
|CRVS||Get Rating||Get Rating||Get Rating|