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5 Drug Stocks for Your Portfolio this World Health Day
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World Health Day is celebrated on Apr 7 every year to mark the anniversary of the founding of the World Health Organization (WHO). Every year, the focus is on a specific health topic of concern with the goal being to raise awareness and address the issue. This World Health Day, the focus is on depression, a leading cause of ill health and disability across the world.
Depression: Let’s Talk
“Depression: let’s talk” is the campaign slogan for this year’s World Health Day. Depression is an illness characterized by persistent sadness and a loss of interest in activities that are usually enjoyed. It is also characterized by the inability to carry out daily activities for at least two weeks.
According to WHO, more than 300 million people are living with depression. These numbers represent an increase of more than 18% between 2005 and 2015. Data provided by the National Institute of Mental Health (NIHM) shows that in 2015 about 16.1 million adults in the U.S. had at least one major depressive episode in the past year. Moreover, there is a strong link between depression and other non-communicable disorders and diseases like diabetes and heart disease.
Given these statistics, it is not surprising that several pharma and biotech companies are involved in developing and selling drugs that target different types of depression including recurrent depressive disorder and bipolar affective disorder.
The market potential for drugs targeting depression is huge. In fact, due to the social stigma and lack of support associated with depression, a large part of the market remains untapped as people don’t seek treatment or are unaware of their symptoms.
5 Stocks to Consider
This World Health Day, let us look at some of the companies which are actively pursuing the development of treatments for various types of depression.
Allergan plc : Allergan, a Zacks Rank #3 (Hold) stock, looks well-positioned in the depression market. The company has quite a few products in its portfolio targeting this market including Vraylar (schizophrenia and bipolar I disorder), Viibryd (major depressive disorder) and Saphris (bipolar I disorder). Moreover, Allergan moved rapastinel, its NMDA receptor modulator, into phase III development for major depressive disorder. Rapastinel, a potentially game-changing treatment for major depressive disorder, could be launched in 2021 with peak sales potential in the range of $1 - $2 billion. Rapastinel was granted breakthrough therapy status for adjunction major depressive disorder by the FDA last year.
Allergan is also evaluating its flagship product, Botox, for the treatment of major depressive disorder. Earlier this week, the company reported top-line data on Botox from a mid-stage study. Although the results were mixed, Allergan intends to move Botox into a phase III program for major depressive disorder (Read more: Allergan Presents Mixed Depression Data on Botox). Allergan has outperformed the Zacks-categorized Generic Drugs industry year-to-date (YTD) with the company’s shares gaining 13.5% compared to the industry gain of 6%.
Alkermes plc (ALKS - Free Report) : Alkermes is focused on developing treatments for central nervous system (CNS) diseases including schizophrenia, depression, addiction and multiple sclerosis. The company is looking to file a NDA for ALKS 5461 for the adjunctive treatment of major depressive disorder in the second half of 2017. According to information provided by Alkermes, total scrips for major depressive disorder were 62 million in 2016 with 7.3 million patients in the U.S. not responding to first line treatment. ALKS 5461, an opioid modulator with a new mechanism of action, has generated mixed data. A pre-NDA meeting is expected in the second quarter of 2017. ALKS 5461 has fast track status in the U.S. So far in 2017, Alkermes has performed better than the Zacks-categorized Medical-Biomedical/Genetics industry with shares gaining 3.5% compared to the industry gain of 2.3%.
Johnson & Johnson (JNJ - Free Report) : Healthcare giant, J&J has a strong presence in the neuroscience segment, which is one of its core therapeutic areas. While the company has products like Risperdal Consta (schizophrenia and bipolar I disorder) in its portfolio, one of the most promising candidates in J&J’s pipeline is esketamine, an investigational antidepressant medication with blockbuster potential. Esketamine, an NMDA receptor antagonist, which has a novel mechanism of action, got breakthrough therapy designation from the FDA for major depressive disorder with imminent risk for suicide in 2016. Esketamine has breakthrough therapy designation for treatment-resistant depression as well.
Sage Therapeutics, Inc. (SAGE - Free Report) : Sage is another company working on the development of CNS treatments. The company’s portfolio includes novel pipeline candidates targeting critical CNS receptor systems, GABA and NMDA. The company’s lead program, brexanolone (SAGE-547), is in late-stage development for super-refractory status epilepticus, a rare and severe seizure disorder, as well as for postpartum depression. Brexanolone has Breakthrough Therapy designation in the U.S. and PRIority MEdicines (PRIME) designation in the EU for the treatment of postpartum depression.
Meanwhile, SAGE-217 is scheduled to move into a phase II placebo-controlled study in major depressive disorder in the first half of 2017. The candidate is currently in a mid-stage study for postpartum depression with top-line results expected in the second half of 2017.
Sage, a Zacks Rank #3 stock, has significantly outperformed the Zacks-categorized Medical-Drugs industry with shares gaining 39.3% compared to the industry gain of 0.04% YTD.
VistaGen Therapeutics Inc. (VTGN - Free Report) : VistaGen is a clinical-stage biopharma company focused on developing new generation medicines for depression and other CNS disorders. The company’s new generation, orally available CNS prodrug candidate, AV-101, is in phase II development, initially for the adjunctive treatment of major depressive disorder in patients with an inadequate response to standard antidepressant therapies approved by the FDA. VistaGen is also a Zacks Rank #3 stock.
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5 Drug Stocks for Your Portfolio this World Health Day
World Health Day is celebrated on Apr 7 every year to mark the anniversary of the founding of the World Health Organization (WHO). Every year, the focus is on a specific health topic of concern with the goal being to raise awareness and address the issue. This World Health Day, the focus is on depression, a leading cause of ill health and disability across the world.
Depression: Let’s Talk
“Depression: let’s talk” is the campaign slogan for this year’s World Health Day. Depression is an illness characterized by persistent sadness and a loss of interest in activities that are usually enjoyed. It is also characterized by the inability to carry out daily activities for at least two weeks.
According to WHO, more than 300 million people are living with depression. These numbers represent an increase of more than 18% between 2005 and 2015. Data provided by the National Institute of Mental Health (NIHM) shows that in 2015 about 16.1 million adults in the U.S. had at least one major depressive episode in the past year. Moreover, there is a strong link between depression and other non-communicable disorders and diseases like diabetes and heart disease.
Given these statistics, it is not surprising that several pharma and biotech companies are involved in developing and selling drugs that target different types of depression including recurrent depressive disorder and bipolar affective disorder.
The market potential for drugs targeting depression is huge. In fact, due to the social stigma and lack of support associated with depression, a large part of the market remains untapped as people don’t seek treatment or are unaware of their symptoms.
5 Stocks to Consider
This World Health Day, let us look at some of the companies which are actively pursuing the development of treatments for various types of depression.
Allergan plc : Allergan, a Zacks Rank #3 (Hold) stock, looks well-positioned in the depression market. The company has quite a few products in its portfolio targeting this market including Vraylar (schizophrenia and bipolar I disorder), Viibryd (major depressive disorder) and Saphris (bipolar I disorder). Moreover, Allergan moved rapastinel, its NMDA receptor modulator, into phase III development for major depressive disorder. Rapastinel, a potentially game-changing treatment for major depressive disorder, could be launched in 2021 with peak sales potential in the range of $1 - $2 billion. Rapastinel was granted breakthrough therapy status for adjunction major depressive disorder by the FDA last year.
Allergan is also evaluating its flagship product, Botox, for the treatment of major depressive disorder. Earlier this week, the company reported top-line data on Botox from a mid-stage study. Although the results were mixed, Allergan intends to move Botox into a phase III program for major depressive disorder (Read more: Allergan Presents Mixed Depression Data on Botox). Allergan has outperformed the Zacks-categorized Generic Drugs industry year-to-date (YTD) with the company’s shares gaining 13.5% compared to the industry gain of 6%.
Alkermes plc (ALKS - Free Report) : Alkermes is focused on developing treatments for central nervous system (CNS) diseases including schizophrenia, depression, addiction and multiple sclerosis. The company is looking to file a NDA for ALKS 5461 for the adjunctive treatment of major depressive disorder in the second half of 2017. According to information provided by Alkermes, total scrips for major depressive disorder were 62 million in 2016 with 7.3 million patients in the U.S. not responding to first line treatment. ALKS 5461, an opioid modulator with a new mechanism of action, has generated mixed data. A pre-NDA meeting is expected in the second quarter of 2017. ALKS 5461 has fast track status in the U.S. So far in 2017, Alkermes has performed better than the Zacks-categorized Medical-Biomedical/Genetics industry with shares gaining 3.5% compared to the industry gain of 2.3%.
Johnson & Johnson (JNJ - Free Report) : Healthcare giant, J&J has a strong presence in the neuroscience segment, which is one of its core therapeutic areas. While the company has products like Risperdal Consta (schizophrenia and bipolar I disorder) in its portfolio, one of the most promising candidates in J&J’s pipeline is esketamine, an investigational antidepressant medication with blockbuster potential. Esketamine, an NMDA receptor antagonist, which has a novel mechanism of action, got breakthrough therapy designation from the FDA for major depressive disorder with imminent risk for suicide in 2016. Esketamine has breakthrough therapy designation for treatment-resistant depression as well.
J&J, a Zacks Rank #3 stock, has a good earnings track record having surpassed expectations all throughout 2016. YTD, the company has outperformed the Zacks-categorized Large Cap Pharmaceuticals industry with shares up 8.6% compared to the industry gain of 6%. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Sage Therapeutics, Inc. (SAGE - Free Report) : Sage is another company working on the development of CNS treatments. The company’s portfolio includes novel pipeline candidates targeting critical CNS receptor systems, GABA and NMDA. The company’s lead program, brexanolone (SAGE-547), is in late-stage development for super-refractory status epilepticus, a rare and severe seizure disorder, as well as for postpartum depression. Brexanolone has Breakthrough Therapy designation in the U.S. and PRIority MEdicines (PRIME) designation in the EU for the treatment of postpartum depression.
Meanwhile, SAGE-217 is scheduled to move into a phase II placebo-controlled study in major depressive disorder in the first half of 2017. The candidate is currently in a mid-stage study for postpartum depression with top-line results expected in the second half of 2017.
Sage, a Zacks Rank #3 stock, has significantly outperformed the Zacks-categorized Medical-Drugs industry with shares gaining 39.3% compared to the industry gain of 0.04% YTD.
VistaGen Therapeutics Inc. (VTGN - Free Report) : VistaGen is a clinical-stage biopharma company focused on developing new generation medicines for depression and other CNS disorders. The company’s new generation, orally available CNS prodrug candidate, AV-101, is in phase II development, initially for the adjunctive treatment of major depressive disorder in patients with an inadequate response to standard antidepressant therapies approved by the FDA. VistaGen is also a Zacks Rank #3 stock.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public. Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>