Pfizer, Inc. (PFE) and BioNTech SE’s (BNTX) vaccine news has created significant pressure on other biotech companies to launch their covid-19 vaccines or therapies soon.
The stringent temperature requirements and pending FDA approval of the highly-discussed vaccine allow other companies an opportunity for their candidates.
Other than BioNTech SE (BNTX), Alexion Pharmaceuticals, Inc. (ALXN) and Ultragenyx Pharmaceutical Inc. (RARE) have indicated significant progress. As the demand for an effective vaccine or treatment is soaring all across the world with many countries witnessing a second wave, these companies are well-positioned to gain significantly in the upcoming months, depending on the progress they make with their respective COVID-19 candidates.
Alexion Pharmaceuticals, Inc. (ALXN)
ALXN develops and sells therapeutic products catering to different ailments. The company offers its services to distributors, pharmacies, hospitals, hospital buying groups, and other healthcare providers in the United States and internationally.
On October 12th, ALXN announced that ULTOMIRIS (ravulizumab-cwvz) 100 mg/mL formulation used for the treatment of paroxysmal nocturnal hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS) has received FDA approval. This approval allows ALXN to commercially sell its product across multiple markets.
ALXN is also offering Soliris as a possible treatment for COVID-19 patients. The company is supplying the drug on a compassionate use basis and has opened an expanded access program in the United States and France for severe COVID-19 pneumonia. It has initiated a global phase 3 clinical trial to evaluate ULTOMIRIS in hospitalized patients with severe COVID-19.
On October 6th, ALXN reported its progression of a robust pipeline of 20+ development programs across 7 rare disease franchises with plans to continue growing the pipeline with more than 5 novel INDs by 2025. The company expects to return at least $3 billion to shareholders through a multi-year stock buyback program, generating higher returns for remaining shareholders.
ALXN’s revenue increased 25.7% year-over-year to $1588.70 million in the third quarter ended September 2020. Net income increased 23.6% from the year-ago value to $578.10 million, while EPS rose 26.3% year-over-year to $2.64 over this period.
The consensus EPS estimate of $12.05 for the current year indicates a 14.4% improvement year-over-year. Moreover, ALXN beat the street EPS estimates in each of the trailing four quarters, which is impressive. The consensus revenue estimate of $5.98 billion for the current year indicates a 20.7% growth from the same period last year. The stock has gained 18.1% year-to-date.
How does ALXN stack up for the POWR Ratings?
A for Trade Grade
A for Buy & Hold Grade
A for Peer Grade
A for Overall POWR Rating.
You can’t ask for better. The stock is also ranked #1 out of 384 stocks in the Biotech industry.
BioNTech SE (BNTX)
BNTX is a biotechnology company that develops and commercializes immunotherapies for cancer and other infectious diseases. It is involved in the development of FixVac product candidates most of which are in their Phase I/II clinical trials. The company has strategic collaborations with Pfizer Inc, Genentech, Inc., Sanofi S.A., Genmab A/S, Genevant Sciences GmbH, Eli Lilly and Company, and several other biotech companies.
On November 9th, BNTX and PFE announced that their coronavirus vaccine was more than 90% effective in preventing Covid-19. Although the vaccine is yet to receive FDA approval, the US and Europe are in line to get the first doses of an experimental coronavirus vaccine. The two companies agreed with the European Commission to supply 200 million doses of their investigational BNT162b2 mRNA-based vaccine candidate against COVID-19 to the European Union. With deliveries starting by the end of 2020, subject to regulatory approval, both the companies expect to produce 50 million vaccine doses in 2020 and 1.3 billion doses in 2021, globally
BNTX’s revenue from collaboration agreements increased 135.3% year-over-year to $79.89 million in the third quarter ended September 2020. Gross profit increased 148.1% from the year-ago value to $71.79 million. EPS rose 528.6% year-over-year to $1.04 over the same period.
The consensus EPS estimate of $0.55 for the current quarter ending December 2020 indicates a 289.7% improvement year-over-year. The consensus revenue estimate of $363.90 million for the current quarter indicates a 1068.6% increase from the same period last year. The stock has gained 212.9% year-to-date.
BNTX’s strong fundamentals are reflected in its POWR Ratings. It has a “Buy” rating with an “A” in Trade Grade and Peer Grade and a “B” in Buy & Hold Grade. It is also ranked #2 out of 384 stocks in the same industry.
Ultragenyx Pharmaceutical Inc. (RARE)
RARE is a biopharmaceutical company focused on the development, identification, acquisition, and commercialization of novel products for genetic diseases in the United States. The company offers products like Crysvita, an antibody targeting fibroblast growth factor 23 for treating hypophosphatemia; and Mepsevii, an enzyme replacement therapy for treating children and adults with Mucopolysaccharidosis VII. It has a partnership and license agreement with Arcturus Therapeutics Holdings Inc. to develop additional nucleic acid therapies for rare diseases.
On November 9th, RARE announced its intention to build a new large-scale gene therapy manufacturing facility in Bedford, Massachusetts. This will allow the company to enhance production processes and enable them to further optimize its scale of operation.
On October 23rd, RARE announced a strategic collaboration with Solid Biosciences to focus on the development and commercialization of new gene therapies for Duchenne Muscular Dystrophy. This will allow the company to produce a high-quality product.
The company is planning to acquire Arcturus therapeutics, which is currently conducting clinical trials for its mRNA-based coronavirus vaccine. The company has exercised an option to purchase a 14.6%equity stake in the company for $48 million.
RARE’s revenue increased by 215.7% year-over-year to $81.47 million in the third quarter ended September 2020. The consensus revenue estimate of $68.40 million for the current quarter ending December 2020 indicates a 92.2% growth from the same period last year. The stock has gained 174.5% year-to-date.
RARE’s promising outlook is reflected in its POWR Ratings. It is rated “Strong Buy” with an “A” for Trade Grade, Buy & Hold Grade and Peer Grade. Among the 384 stocks in the Biotech group, it’s ranked #5.
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BNTX shares were trading at $91.43 per share on Monday afternoon, down $14.57 (-13.75%). Year-to-date, BNTX has gained 169.86%, versus a 13.82% rise in the benchmark S&P 500 index during the same period.
About the Author: Imon Ghosh
Imon is an investment analyst and journalist with an enthusiasm for financial research and writing. She began her career at Kantar IMRB, a leading market research and consumer consulting organization.
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