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The Zacks Analyst Blog Highlights: Alder, Xenon, Spero and Trevena
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For Immediate Release
Chicago, IL –October 12, 2018 – 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: Alder Biopharmaceuticals, Inc. , Xenon Pharmaceuticals Inc. (XENE - Free Report) , Spero Therapeutics, Inc. (SPRO - Free Report) and Trevena, Inc. (TRVN - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Healthcare Stocks Thriving on Venture Capital Funding
After getting off to a rather rocky start this year, the healthcare space has witnessed massive gains in the recent past. Further, a higher number of approvals by the FDA and the continued influx of funds into the sector has given it a solid boost.
Recent studies have also shown that U.S. healthcare has been a hotbed of money for American as well as foreign venture capitalists. The inflow of funds that the space has witnessed so far in 2018 has surpassed the total funding it received in 2017 by a large margin.
Further, Health Care Select Sector SPDR ETF (XLV) has been the top-performing ETF, gaining 6% in past three months. Under such encouraging conditions, investing in venture capital (VC)-backed healthcare companies seems prudent.
Venture Capital Funding Propels U.S. Healthcare
Per the latest quarterly report by Pitchbook, provider of data related to venture capital and private equity funding, healthcare companies in the United States raised approximately $23.4 billion in venture funding as of Sep 30. The figure also surpassed the $20.5 billion funding that the space received in all of 2017. Further, the funding received by healthcare alone accounts for about 28% of the total venture funding in the United States so far this year.
Pharma and biotech have received the majority of venture capital funding so far this year, accounting for about 62% of the total. About 6,500 deals have closed as of Sep 30 this year, which in on track to surpass 9,300 deals closed in all of 2017.
China Leads Foreign Investment in Biotech Startups
Chinese venture-capital funds have invested a whopping $1.4 billion in U.S. biotech and drug companies in the period between January through March. This surpasses $125.5 million in investments by Chinese VCs for the whole of 2017. Part of such an increase can be attributed to China’s efforts in becoming the leader in healthcare investments across the globe. This apart, foreign investment in U.S. biotech is estimated to rise to $2 billion in 2018.
Brii Biosciences is on among the many U.S. startups that have benefited immensely from Asian money. The company recently raised $260 million from Asian investors. So far in 2018, Asian investors have poured in $4.2 billion into biotech startups in the country.
Leading from the front are China’s 6 Dimensions Capital and Hillhouse Capital Group. These are closely followed by Hong Kong-based Blue Pool Capital, which happens to be an investment arm of China-based Alibaba’s (BABA) executives.
4 Hot Choices
A steady influx of foreign as well as domestic investments in U.S. healthcare has gone a long way in boosting gains for the space. Further, a burgeoning economy has necessitated diversification by the top players in the industry.
In this context, we have selected four healthcare stocks that are expected to gain from these factors. These five stocks carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Alder Biopharmaceuticals, Inc. engages in the development and commercialization of therapeutic antibodies used in the treatment of migraine and other serious neurological or inflammatory conditions. The company received $250 million in funding from the venture capital firm Redmile Group, LLC in April 2018.
The company is based out of Bothell, WA and has an expected earnings growth rate 4.49% for the current year. The Zacks Consensus Estimate for the current year has improved 3.7% over the past 60 days.
Xenon Pharmaceuticals Inc. is the owner and operator of a clinical-stage biopharmaceutical company with operations in both Canada and the United States. The company received venture funding during its IPO in September 2018.
This company is based out of Burnaby, Canada. The expected earnings growth rate for the current year is 22.67%. The Zacks Consensus Estimate for the current year has improved 4.3% over the past 60 days.
Spero Therapeutics, Inc. engages in the development of novel treatments for multi-drug resistant (MDR) bacterial infections. The company received venture funding of $75 million from Osage University Partners in June 2018.
The company is based out of Bothell, WA and has expected earnings growth rate of 4.49% for the current year. The Zacks Consensus Estimate for the current year has improved 3.7% over the past 60 days.
Trevena, Inc. is a developer of therapies and treatments for serious medical conditions. Polaris Venture Management Co., LLC holds approximately 2.1 million shares worth $2.96 million in the company.
This company is based out of Chesterbrook, PA. The expected earnings growth rate for the current year is 50.14%. The Zacks Consensus Estimate for the current year has improved 10.5% over the past 60 days.
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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Alder, Xenon, Spero and Trevena
For Immediate Release
Chicago, IL –October 12, 2018 – 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: Alder Biopharmaceuticals, Inc. , Xenon Pharmaceuticals Inc. (XENE - Free Report) , Spero Therapeutics, Inc. (SPRO - Free Report) and Trevena, Inc. (TRVN - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Healthcare Stocks Thriving on Venture Capital Funding
After getting off to a rather rocky start this year, the healthcare space has witnessed massive gains in the recent past. Further, a higher number of approvals by the FDA and the continued influx of funds into the sector has given it a solid boost.
Recent studies have also shown that U.S. healthcare has been a hotbed of money for American as well as foreign venture capitalists. The inflow of funds that the space has witnessed so far in 2018 has surpassed the total funding it received in 2017 by a large margin.
Further, Health Care Select Sector SPDR ETF (XLV) has been the top-performing ETF, gaining 6% in past three months. Under such encouraging conditions, investing in venture capital (VC)-backed healthcare companies seems prudent.
Venture Capital Funding Propels U.S. Healthcare
Per the latest quarterly report by Pitchbook, provider of data related to venture capital and private equity funding, healthcare companies in the United States raised approximately $23.4 billion in venture funding as of Sep 30. The figure also surpassed the $20.5 billion funding that the space received in all of 2017. Further, the funding received by healthcare alone accounts for about 28% of the total venture funding in the United States so far this year.
Pharma and biotech have received the majority of venture capital funding so far this year, accounting for about 62% of the total. About 6,500 deals have closed as of Sep 30 this year, which in on track to surpass 9,300 deals closed in all of 2017.
China Leads Foreign Investment in Biotech Startups
Chinese venture-capital funds have invested a whopping $1.4 billion in U.S. biotech and drug companies in the period between January through March. This surpasses $125.5 million in investments by Chinese VCs for the whole of 2017. Part of such an increase can be attributed to China’s efforts in becoming the leader in healthcare investments across the globe. This apart, foreign investment in U.S. biotech is estimated to rise to $2 billion in 2018.
Brii Biosciences is on among the many U.S. startups that have benefited immensely from Asian money. The company recently raised $260 million from Asian investors. So far in 2018, Asian investors have poured in $4.2 billion into biotech startups in the country.
Leading from the front are China’s 6 Dimensions Capital and Hillhouse Capital Group. These are closely followed by Hong Kong-based Blue Pool Capital, which happens to be an investment arm of China-based Alibaba’s (BABA) executives.
4 Hot Choices
A steady influx of foreign as well as domestic investments in U.S. healthcare has gone a long way in boosting gains for the space. Further, a burgeoning economy has necessitated diversification by the top players in the industry.
In this context, we have selected four healthcare stocks that are expected to gain from these factors. These five stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alder Biopharmaceuticals, Inc. engages in the development and commercialization of therapeutic antibodies used in the treatment of migraine and other serious neurological or inflammatory conditions. The company received $250 million in funding from the venture capital firm Redmile Group, LLC in April 2018.
The company is based out of Bothell, WA and has an expected earnings growth rate 4.49% for the current year. The Zacks Consensus Estimate for the current year has improved 3.7% over the past 60 days.
Xenon Pharmaceuticals Inc. is the owner and operator of a clinical-stage biopharmaceutical company with operations in both Canada and the United States. The company received venture funding during its IPO in September 2018.
This company is based out of Burnaby, Canada. The expected earnings growth rate for the current year is 22.67%. The Zacks Consensus Estimate for the current year has improved 4.3% over the past 60 days.
Spero Therapeutics, Inc. engages in the development of novel treatments for multi-drug resistant (MDR) bacterial infections. The company received venture funding of $75 million from Osage University Partners in June 2018.
The company is based out of Bothell, WA and has expected earnings growth rate of 4.49% for the current year. The Zacks Consensus Estimate for the current year has improved 3.7% over the past 60 days.
Trevena, Inc. is a developer of therapies and treatments for serious medical conditions. Polaris Venture Management Co., LLC holds approximately 2.1 million shares worth $2.96 million in the company.
This company is based out of Chesterbrook, PA. The expected earnings growth rate for the current year is 50.14%. The Zacks Consensus Estimate for the current year has improved 10.5% over the past 60 days.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.