In addition to playing a crucial role in the fight against COVID-19, the biotech industry is focusing increasingly on developing solutions to treat other critical ailments. And given the industry’s solid growth prospects, we think it could be wise to bet on quality biotech stocks QIAGEN (QGEN), Exelixis (EXEL), and Vanda Pharmaceuticals (VNDA).
QIAGEN N.V. (QGEN)
Headquartered in Venlo, the Netherlands, QGEN provides sample and assay technology to transform biological samples into valuable molecular insights. It offers bioinformatics, molecular diagnostics, next-gen sequencing, and genomic services. It also offers primary sample technology consumables, such as nucleic stabilization and purification kits.
On July 20, 2021, QIAGEN initiated a new $100 million share repurchase program for up to $100 million of shares through September 17, 2021. This is expected to boost the company’s financials soon.
QGEN’s net sales increased 28% year-over-year to $567.30 million in the second quarter, ended June 30, 2021. Its operating income came in at $161.30 million, up 35.9% year-over-year. Its adjusted net was $154.70 million, up 20.1% year-over-year, and its adjusted EPS came in at $0.67, up 21.8% year-over-year.
Analysts expect QGEN’s revenue and EPS to hit $1.86 billion and $2.11, respectively, in its fiscal year 2021. Also, its EPS is estimated to grow 9.9% per annum in the next five years. In addition, it has surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past six months, the stock has gained 5.2% in price to close Friday’s trading session at $53.99.
Exelixis, Inc. (EXEL)
Oncology-based biotechnology company EXEL focuses on discovering, developing, and commercializing new medicines to treat cancers in the USA. The San Francisco concern’s products include CABOMETYX tablets and COMETRIQ capsules for cancer treatment.
On October 14, 2021, EXEL and STORM Therapeutics entered an exclusive collaboration and license agreement to discover and develop novel RNA modifying enzyme inhibitors. Peter Lamb, Ph.D., Executive Vice President, Scientific Strategy and Chief Scientific Officer, EXEL, said, “We believe this collaboration has the potential to expand our portfolio of differentiated small molecule therapies in the field of oncology and deliver a first-in-class ADAR1 inhibitor.”
EXEL’s total revenues increased 48.4% year-over-year to $385.18 million for its fiscal second quarter, ended June 30, 2021. The company’s income from operations came in at $123.01 million, up 62.9% year-over-year. Its net income for the quarter was $96.09 million, up 43.8% from the year-ago period. Also, its EPS came in at $0.30, up 42.9% from the prior year’s quarter.
For its fiscal year 2021, analysts expect EXEL’s revenue to be $1.39 billion, representing a 40.3% year-over-year rise. The company’s EPS is expected to increase 80% year-over-year to $0.63 in fiscal 2021. Over the past three months, the stock has gained 26.3% in price to close Friday’s trading session at $21.40.
Vanda Pharmaceuticals Inc. (VNDA)
VNDA is a Washington, D.C.-based biopharmaceutical company that focuses on developing and commercializing therapies to address high unmet medical needs. The company’s marketed products include HETLIOZ, and its products under development include HETLIOZ, Fanapt, and Tradipitant.
On July 28, 2021, Michael H. Polymeropoulos, M.D., VNDA’s President, CEO and Board Chairman, said, “Our tradipitant in gastroparesis program is nearing completion, bringing us closer to a much-needed new treatment option for patients with gastroparesis and a potentially transformational commercial opportunity for Vanda.”
VNDA’s revenue increased 9.2% year-over-year to $67.9 million in its fiscal second quarter, ended June 30, 2021. Its income from operations came in at $12.37 million, up 34.9% from the previous period. Furthermore, its net income came in at $9.65 million, up 10.8% year-over-year. Also, its EPS was $0.17, up 6.3% year-over-year.
For its fiscal year 2021, VNDA’s revenue and EPS are expected to grow 14.5% and 28.6%, respectively, year-over-year to $284.13 million and $0.54. It surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past nine months, the stock has gained 28.9% to close Friday’s trading session at $18.30.
