3 “Strong Buy” Healthcare stocks under $ 5 that could go up in bloom
Since 2019, the healthcare sector has been supporting the wild ride that would be election year. However, according to some Street professionals, 2021
looks a lot like 2009, and this can actually be a good thing for space. ”[We] think 2021 will play very similar 2009 to the healthcare sector. If the political prediction markets are actually correct and the Democrats take control of the presidency and the US Senate, the rhetoric about changes in health policy exceeds the reality of what can be achieved, “noted UBS health strategist Eric Potoker. the Affordable Care Act (ACA) had a subdued effect on the industry, with demand for products and services increasing due to expanded health coverage.Health stocks reaped the benefits of this between 2009 and 2015, and space surpassed the rest To this end, Potoker believes 2021 will play out in a very similar way and therefore point to the healthcare area as a must-watch area in the market.Using TipRanks’ database, we scanned Street for convincing yet affordable gaming in the healthcare sector.Locking on three trades for less than $ 5 per share, the platform revealed that even with the risk involved, all three have scored overwhelmingly bullish an alyst support, enough to earn a “Strong Buy” consensus rating. What’s more, each has a massive upward potential. Kintara Therapeutics (KTRA) Kintara Therapeutics works to meet the needs of patients who are failing or resistant to current treatment regimens, and focuses on developing groundbreaking cancer therapies. Based on its diverse oncology-focused pipeline and $ 1.40 stock price, some members of Street believe the stock price reflects an attractive entry point. Aegis analyst Nathan Weinstein cites the company’s two differentiated late-stage oncology assets as the primary components of his bullish dissertation. These candidates are VAL-083, a small molecule chemotherapeutic agent for the treatment of glioblastoma multiforme (GBM), a highly lethal brain cancer with a 95% mortality rate of five years and REM-001, a phototherapy designed to treat cutaneous metastatic breast cancer ( CMBC). Looking at the former, Weinstein highlights the fact that VAL-083 affects DNA in a different way than the current standard of care, temozolomide (TMZ). “We believe that VAL-083 could show relative benefit, especially in MGMT unmethylated patients. Two-thirds of GBM patients have an unmethylated MGMT promoter, ”the analyst noted. The MGMT repair enzyme has been shown to correct the damage to DNA caused by TMZ. However, patients with an unmethylated MGMT repair enzyme have a poor response to TMZ treatment, which bodes well for KTRA as its treatment has a different mechanism of action. “In our view, data from the ongoing Phase 2 trials presented at the AACR (June 2020) are encouraging in terms of overall survival (OS) and progression-free survival (PFS) data relative to historical controls,” Weinstein said. As for REM-001, it has been evaluated in over 1,000 patients to date and thus has a “well-characterized safety profile” in Weinstein’s view. In addition, the activity in previous CMBC trials has shown robust efficacy, including 80% complete response of evaluable lesions. All of the above led Weinstein to comment, “We find the valuation of Kintara on the market to be convincing as little value is attributed to the company, despite having two Phase 3 oncology assets with sufficient funding in place to to reach more milestones ahead. For this purpose, Weinstein evaluates KTRA a purchase together with a price target of $ 6. This target conveys his confidence in KTRA’s ability to climb 341% higher in the next year. (To view Weinstein’s track record, click here) Do other analysts agree? They are. Only Buy ratings, 3 to be exact, have been issued in the last three months. Therefore, the word on the street is that KTRA is a strong buy. Given the average price target of $ 4.33, the stock may rise 218% from its current level. (See KTRA stock analysis on TipRanks) DiaMedica Therapeutics (DMAC) Using cutting-edge technologies, DiaMedica Therapeutics is developing new recombinant proteins for the treatment of kidney and neurological diseases. With a price of $ 4.20 per. Stock and potential catalysts are coming up, no wonder this stock is on Wall Street’s radar. Representative Craig-Hallum, analyst Alexander Nowak sees several value-creating catalysts in print, noting that the company appears to be “chronically undervalued”. Looking forward to the 4th quarter, DMAC will hold a meeting with the FDA for DM199 in Acute Ischemic Stroke (AIS), where breakthrough designation, Special Protocol Assessment (SPA), Phase 3 test design and a Phase 3 study greenlight will be topics for discussion. DM199, DMAC’s leading candidate, is a recombinant form of the KLK1 protein (an endogenous serine protease produced in the kidneys, pancreas and salivary glands) According to Nowak, this phase 3 study is the next major potential catalyst and could potentially lead to strategic partnership talks. He added: “We also think that a SPA confirming the exclusion of mechanical thrombectomy and occlusion of large vessels and mRS / NIHSS excellent end results is a major gain (basically means replicating the phase 2 study with the intention of treating the population). ” While the meeting will take place later than Nowak thought (he originally expected a meeting in August), the delay is due to hiring an external consulting team to help with FDA communications, a “valid and sensible reason for pushback,” in his opinion. this is evaluated DM199 in chronic kidney disease (CKD). Phase 2 test enrollment was temporarily suspended in the second quarter, but registration has been better. It should be noted that the delays have mostly been related to patients who were nervous about entering the clinic for the first setup during the COVID crisis. With this in mind, the analyst expects the data reading to come in Q1 2021. To sum it all up, Nowak said, “We are still looking at Phase 2 CKD trials as the more significant, immediate value-creating opportunity given the large market and recent industry successes (RETA). But we are also more bullish than most investors who are in stroke, as the only drug used is more than two decades old, no serious competitors are on the way and approval (which can only be done in a few hundred patients) can lead to fast recording within 1-2 years. “Everything DMAC has used convinced Nowak to repeat its Buy rating. Along with the call, he attached a price target of $ 15, indicating 265% upward potential. (To view Nowak’s track record, click here) Overall, DMAC shares are getting unanimous thumbs up from analysts’ consensus, with 3 recent Buy reviews adding a strong Buy rating. At $ 14.33, the average price target represents 248% upward potential from current levels. (See DMAC stock analysis on TipRanks) OPKO Health (OPK) Through its unique products, comprehensive diagnostic laboratories and robust research and development pipeline, OPKO Health wants to improve patients’ lives. OPKO shares have risen 162% this year, but to $ 3.86 apiece, several analysts believe this stock is still undervalued. Following the announcement that OPK had launched the Phase 2 REsCue study of Rayaldee for the treatment of mild to moderate COVID-19, 5-star analyst Edward Tenthoff from Piper Sandler points out that he has high hopes for the company. Rayaldee is currently approved for secondary hyperparathyroidism (SHPT) in stage 3-4 chronic kidney disease (CKD) and is progressing through a phase 2 study in dialysis patients. According to Tenthoff, many of the patients in the COVID study will have stages 3 -4 CKD, “where Rayaldee has shown clinical benefit.” In addition, the analyst believes that boosting serum 25D can increase macrophage immunity by targeting potent antiviral proteins. Reflecting another $ 251 million positive service revenue in Q2 2020 beat expectations as a result of 2.2 million SARS-CoV-2 PCR and antibody tests performed at BioReference Labs in the quarter. In addition to the good news, OPK managed 45,000-55,000 tests per day in Q3 2020 and a service revenue of $ 325-350 million in Q4. It should be noted that this includes the basic diagnostic business which is starting to bounce back. To this end, Tenthoff estimates that service revenues could increase 53% higher and reach DKK 1.1 billion. $ This year. Tenthoff is also looking forward to somatrogon, the company’s treatment for pediatric growth hormone deficiency (GHD), regulatory archives. Its partner, Pfizer, plans to submit the BLA this fall with U.S. approval and market launch possibly in 2H21. An open European study is expected to be completed this quarter and will enable an EMA administration in 2021. In addition, crucial Phase 3 Japanese data in pediatric GHD patients may support a legislative administration in the country in 1H21.Based on the Phase 3 trial of therapy, where it met the primary endpoint at altitude, Tenthoff sees approval as likely. In line with his optimistic approach, Tenthoff remains with the bulls. For this purpose, he holds an overweight (i.e. buy) rating and $ 10 price target on the stock. Investors can get a gain of 159% in their pocket if this goal is reached in the next twelve months. (To view Tenthoff’s track record, click here) All in all, other analysts repeat Tenthoff’s sentiment. 4 Buy and no holdings or sales sell for a strong buy consensus assessment. With an average price target of $ 8, the upside potential comes in at 107%. (See OPKO stock analysis on TipRanks) To find great ideas for healthcare stocks that trade at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ stock insights. Disclaimer: The statements in this article are solely those of the featured analysts. The content is intended for informational purposes only. It is very important to do your own analysis before making an investment.