With Monkeypox and the continued pandemic as major drivers, biotech and other healthcare subindustries have outperformed. In the past 3 months, Healthtech (+17.89%), Life Sciences (+13.08%), and Biotech (+12.38) have all outpaced the broader US Markets (+7.88%). With earnings season upon us and several companies announcing major catalysts, investors are focused on stocks in these industries.
EARNINGS-RELATED CATALYSTS DRIVING INTEREST
Veru, Inc. (NASDAQ: VERU) analysts slashed estimates for next year, both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously. Surprisingly the share price has been buoyant, rising 51% to US$19.08 in the past 7 days. At the same time, Jefferies Financial Group boosted their FY2024 earnings estimates for shares of Veru in a report issued on Thursday, August 11th. Jefferies Financial Group analyst C. Howerton now expects that the company will post earnings per share of $2.97 for the year, up from their previous estimate of $2.96. The consensus estimate for Veru's current full-year earnings is ($0.58) per share. Jefferies Financial Group also issued estimates for Veru's FY2025 earnings at $4.14 EPS and FY2026 earnings at $5.97 EPS. Veru’s last announced its earnings results were released in May, ($0.18) EPS for the quarter, missing the consensus estimate of ($0.16) by ($0.02). The company reported revenue of $13.03 million during the quarter, compared to analyst estimates of $15.18 million. During the same quarter in the previous year, the business earned ($0.04) earnings per share
From estimates to actual results, Applied DNA Sciences (NASDAQ: APDN) reported a quarterly loss of $0.33 per share which beat estimates and is an improvement over last year’s loss of $0.46 per share. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Applied DNA Sciences posted revenues of $4.3 million for the quarter ended June 2022, an improvement over last year’s revenues of $1.7 million.
TOMDF CONTINUES TO PUSH TOLLVOID CLINICAL TRIALS FORWARD
Todos Medical, Ltd. (OTCQB: TOMDF), which has been a darling of health investors this summer announced its majority-owned subsidiary 3CL Pharma, Ltd has finalized plans for a proposed safety and efficacy clinical trial for its 3CL protease inhibitor immune support dietary supplement Tollovid™ in patients with Long COVID. The 45-patient Part A of the study will be conducted as a 3-arm, randomized, controlled, observer-blinded clinical study evaluating Tollovid’s effects on the structure/function of the immune system as measured by the presence of neutralizing antibodies, total anti SARS-CoV-2 antibodies (IgG, IgA, IgM) and VEGF cytokine levels.
“After gathering data from 3CL’s IRB-waived market research study of Tollovid, as well as numerous case studies, we have now settled on what we believe is the most pragmatic approach to get controlled clinical data for this commercially available dietary supplement. The knowledge gained should allow us to answer key clinical questions about its safety and efficacy in Long COVID,” said Dr. Dorit Arad, Co-Founder and Chief Technology Officer at 3CL Pharma. “Over the past few months, we have gathered a substantial body of anecdotal reports about Tollovid in both acute and Long COVID, however it is crucial that we understand its effect in a controlled trial setting so that we can communicate with consumers in the marketplace, as well as regulatory authorities with regard to Tollovid’s potential in Long COVID.”
The company also has several diagnostic tests in the works for several indications including Monkeypox, COVID, and many other respiratory illnesses. The stock has seen a marked increase in investor interest, and is rated a “Buy” at Barchart.com, with the strongest indicators pointing to a short-term increase in price.
DNA TREATMENTS COME INTO FOCUS
Ginkgo Bioworks (NYSE:DNA) who announced a new drug candidate for gout with Synlogic (NASDAQ:SYBX) saw a spike in its share price last week. Synlogic, also gained market value on the deal.
This is the second time the two companies have collaborated on a drug candidate. The first was a possible treatment for homocystinuria, a rare inherited blood condition.
The new candidate should have a large market as Gout affects about 9.2 million people in the U.S. There is currently no cure, although there are drugs that reduce levels of uric acid. Uric acid crystals cause the pain associated with the disease. The Ginkgo-Synlogic drug, SYNB2081, is a synthetic biotic that would compete with existing drugs.
CONCLUSIONWith more investors focusing on the healthtech subindustries stocks like TOMDF and DNA that are making major strides toward proving efficacy could be the biggest winners. Start your research today.
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