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The Zacks Analyst Blog Highlights Merck, Vertex Pharmaceuticals, Immunocore Holdings and Immunovant
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For Immediate Release
Chicago, IL – December 19, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Merck (MRK - Free Report) , Vertex Pharmaceuticals (VRTX - Free Report) , Immunocore Holdings (IMCR - Free Report) and Immunovant (IMVT - Free Report) .
Here are highlights from Friday’s Analyst Blog:
4 Drug Stocks Up More Than 40% YTD with More Room to Grow in 2023
The drug and biotech sector is expected to see a favorable operating environment in 2023 despite macroeconomic uncertainty and the rising risk of a global recession.
The drug and biotech sector bounced back in the second half of 2022 from a rather weak performance in the first half. An uptick in M&A deals, strong earnings performance, new drug approvals, a favorable regulatory environment and pipeline successes helped the sector turn around.
While the broader market is grappling with rising interest rates and inflation, innovation — the sector's driving force — continues to take place, with the trend expected to continue in 2023. M&A in the drug and biotech sector is also expected to pick up noticeably.
It is a defensive sector to invest in the present environment of rising interest rates and economic uncertainty.
Several companies in the drug and biotech sector have returned 40% or more in 2022 so far and have room for more growth in 2023. Here we discuss four such companies, Merck, Vertex Pharmaceuticals, Immunocore Holdings and Immunovant.
Merck
Based in Kenilworth, NJ, Merck boasts more than six blockbuster drugs in its portfolio, with PD-L1 inhibitor, Keytruda, approved for several types of cancer and alone accounting for around 40% of the company's pharmaceutical sales. An ongoing recovery from the disruptions related to the pandemic and strong global underlying demand across its business, particularly for Keytruda and Gardasil vaccines to prevent HPV-related cancers, are boosting Merck's sales performance.
Keytruda is continuously growing and expanding into new indications and markets globally. With continued label expansion into new indications & early-stage settings, Keytruda is expected to remain a key top-line driver. Merck's Animal Health business has been a key contributor to its top-line growth, with the company recording above-market growth. The trend is expected to continue in 2023. Merck boasts a strong cancer pipeline, including Keytruda, which should help drive long-term growth.
Merck's stock has risen 43.0% this year so far. The Zacks Consensus Estimate for 2022 has risen from $7.31 per share to $7.38 per share while that for 2023 has gone up from $7.21 per share to $7.34 per share over the past 60 days. Merck has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Vertex Pharmaceuticals
Vertex's main area of focus is cystic fibrosis (CF). With its four CF medicines, Vertex treats the majority of the 83,000 patients living with CF in the United States, Europe, Canada and Australia. Vertex's CF sales continue to grow driven by its triple therapy, Trikafta/Kaftrio. New reimbursement agreements in ex-U.S. markets and label expansions to younger age groups in the United States are driving Trikafta/Kaftrio sales higher. Vertex faces only minimal competition in its core CF franchise.
While Vertex's main focus is the development and strengthening of its CF franchise, the company also has a rapidly advancing mid- to late-stage pipeline in seven additional diseases like acute pain, sickle cell disease, beta-thalassemia, APOL1-mediated kidney diseases, alpha-1 antitrypsin deficiency and cell therapy for type I diabetes.
Many of these candidates represent multibillion-dollar opportunities. Programs in five disease areas are now entering or progressing through late-stage clinical development. Multiple late-stage projects have established proof of concept. Several data readouts are scheduled for 2023 that can be important catalysts for the stock.
Vertex Pharmaceuticals' stock has risen 40.4% this year so far. Estimates for Vertex's 2022 earnings have gone up from $14.21 to $14.65 per share, while that for 2023 have increased from $15.10 to $15.62 per share over the past 60 days. Vertex has a Zacks Rank of 3.
Immunocore Holdings
Immunocore has made the world's first soluble TCR therapy, KIMMTRAK, which has been approved for the treatment of unresectable or metastatic uveal melanoma, a rare and aggressive form of melanoma, which affects the eye, in several countries, including the United States. KIMMTRAK has witnessed strong uptake in academic and community treatment centers. Immunocore, also at a recent medical meeting, announced promising clinical data on its first molecule to target the PRAME antigen, IMC-F106C-101.
In July, Immunicore announced a private investment in public equity ("PIPE") financing with four existing investors for net proceeds of $139.6 million. This PIPE financing, along with the strong commercial performance of KIMMTRAK, boosts the company's growth prospects.
Immunocore's stock has risen 73.5% this year so far. Loss estimates for 2022 have narrowed from $1.25 to 54 cents per share, while that for 2023 have improved from $1.69 to 70 cents per share over the past 60 days. Immunocare has a Zacks Rank of 2.
Immunovant
Immunovant is progressing well with the development of its lead pipeline candidate, batoclimab (formerly IMVT-1401), for the treatment of several types of autoimmune diseases. Immunovant is developing batoclimab, with an initial focus on the treatment of myasthenia gravis, thyroid eye disease and warm autoimmune hemolytic anemia.
The company believes that, if approved, the candidate will become a cornerstone therapy for treating many auto-antibody-driven diseases and would be a unique treatment, different from the currently available ones that are more invasive for advanced immunoglobulin G-mediated autoimmune diseases.
Immunovant's stock has risen 78.5% this year so far. Loss estimates for 2022 have narrowed from $1.64 to $1.56 per share, while that for 2023 have improved from $1.83 to $1.60 per share over the past 60 days. Immunovant also has Zacks Rank #3.
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Last year's 2021Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Merck, Vertex Pharmaceuticals, Immunocore Holdings and Immunovant
For Immediate Release
Chicago, IL – December 19, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Merck (MRK - Free Report) , Vertex Pharmaceuticals (VRTX - Free Report) , Immunocore Holdings (IMCR - Free Report) and Immunovant (IMVT - Free Report) .
Here are highlights from Friday’s Analyst Blog:
4 Drug Stocks Up More Than 40% YTD with More Room to Grow in 2023
The drug and biotech sector is expected to see a favorable operating environment in 2023 despite macroeconomic uncertainty and the rising risk of a global recession.
The drug and biotech sector bounced back in the second half of 2022 from a rather weak performance in the first half. An uptick in M&A deals, strong earnings performance, new drug approvals, a favorable regulatory environment and pipeline successes helped the sector turn around.
While the broader market is grappling with rising interest rates and inflation, innovation — the sector's driving force — continues to take place, with the trend expected to continue in 2023. M&A in the drug and biotech sector is also expected to pick up noticeably.
It is a defensive sector to invest in the present environment of rising interest rates and economic uncertainty.
Several companies in the drug and biotech sector have returned 40% or more in 2022 so far and have room for more growth in 2023. Here we discuss four such companies, Merck, Vertex Pharmaceuticals, Immunocore Holdings and Immunovant.
Merck
Based in Kenilworth, NJ, Merck boasts more than six blockbuster drugs in its portfolio, with PD-L1 inhibitor, Keytruda, approved for several types of cancer and alone accounting for around 40% of the company's pharmaceutical sales. An ongoing recovery from the disruptions related to the pandemic and strong global underlying demand across its business, particularly for Keytruda and Gardasil vaccines to prevent HPV-related cancers, are boosting Merck's sales performance.
Keytruda is continuously growing and expanding into new indications and markets globally. With continued label expansion into new indications & early-stage settings, Keytruda is expected to remain a key top-line driver. Merck's Animal Health business has been a key contributor to its top-line growth, with the company recording above-market growth. The trend is expected to continue in 2023. Merck boasts a strong cancer pipeline, including Keytruda, which should help drive long-term growth.
Merck's stock has risen 43.0% this year so far. The Zacks Consensus Estimate for 2022 has risen from $7.31 per share to $7.38 per share while that for 2023 has gone up from $7.21 per share to $7.34 per share over the past 60 days. Merck has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Vertex Pharmaceuticals
Vertex's main area of focus is cystic fibrosis (CF). With its four CF medicines, Vertex treats the majority of the 83,000 patients living with CF in the United States, Europe, Canada and Australia. Vertex's CF sales continue to grow driven by its triple therapy, Trikafta/Kaftrio. New reimbursement agreements in ex-U.S. markets and label expansions to younger age groups in the United States are driving Trikafta/Kaftrio sales higher. Vertex faces only minimal competition in its core CF franchise.
While Vertex's main focus is the development and strengthening of its CF franchise, the company also has a rapidly advancing mid- to late-stage pipeline in seven additional diseases like acute pain, sickle cell disease, beta-thalassemia, APOL1-mediated kidney diseases, alpha-1 antitrypsin deficiency and cell therapy for type I diabetes.
Many of these candidates represent multibillion-dollar opportunities. Programs in five disease areas are now entering or progressing through late-stage clinical development. Multiple late-stage projects have established proof of concept. Several data readouts are scheduled for 2023 that can be important catalysts for the stock.
Vertex Pharmaceuticals' stock has risen 40.4% this year so far. Estimates for Vertex's 2022 earnings have gone up from $14.21 to $14.65 per share, while that for 2023 have increased from $15.10 to $15.62 per share over the past 60 days. Vertex has a Zacks Rank of 3.
Immunocore Holdings
Immunocore has made the world's first soluble TCR therapy, KIMMTRAK, which has been approved for the treatment of unresectable or metastatic uveal melanoma, a rare and aggressive form of melanoma, which affects the eye, in several countries, including the United States. KIMMTRAK has witnessed strong uptake in academic and community treatment centers. Immunocore, also at a recent medical meeting, announced promising clinical data on its first molecule to target the PRAME antigen, IMC-F106C-101.
In July, Immunicore announced a private investment in public equity ("PIPE") financing with four existing investors for net proceeds of $139.6 million. This PIPE financing, along with the strong commercial performance of KIMMTRAK, boosts the company's growth prospects.
Immunocore's stock has risen 73.5% this year so far. Loss estimates for 2022 have narrowed from $1.25 to 54 cents per share, while that for 2023 have improved from $1.69 to 70 cents per share over the past 60 days. Immunocare has a Zacks Rank of 2.
Immunovant
Immunovant is progressing well with the development of its lead pipeline candidate, batoclimab (formerly IMVT-1401), for the treatment of several types of autoimmune diseases. Immunovant is developing batoclimab, with an initial focus on the treatment of myasthenia gravis, thyroid eye disease and warm autoimmune hemolytic anemia.
The company believes that, if approved, the candidate will become a cornerstone therapy for treating many auto-antibody-driven diseases and would be a unique treatment, different from the currently available ones that are more invasive for advanced immunoglobulin G-mediated autoimmune diseases.
Immunovant's stock has risen 78.5% this year so far. Loss estimates for 2022 have narrowed from $1.64 to $1.56 per share, while that for 2023 have improved from $1.83 to $1.60 per share over the past 60 days. Immunovant also has Zacks Rank #3.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
Last year's 2021Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
Access Zacks Top 10 Stocks for 2022 today >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.