In 2022, long before these stocks saw an increase in value, Seeking Contributors advised investors to buy AbbVie stock (NYSE:ABBV), Vertex Pharma (NASDAQ:VRTX), Genmab (GMAB), and a variety of other biotechs. In some cases, this advice was given despite the consensus opinion on Wall Street.
The following is a list of some of Seeking Alpha’s editors’ top biotech articles from contributors in 2022:
Calling Genmab a “Strong Buy”
Seeking Alpha contributor Biologics had differing opinions from analysts who were giving bearish calls on the Danish biotech Genmab (GMAB).
In December 2021, Biologics noted that Genmab (GMAB) was trading at a “significant” discount to projected earnings forecasts and assigned the stock a “Strong Buy rating” just before the year got underway.
Since that time, Genmab (GMAB) has increased by around 6% for 2022 even while the overall biotech industry has decreased by about 27% for the year.
Abbvie Stock Outlook
Neglecting the Humira Patent “Cliff” from AbbVie
Edmund Ingham, a contributor to SA, was one of many SA authors to correctly forecast the bull run of AbbVie (ABBV) in 2022 despite an impending “patent cliff” for its top-selling rheumatoid arthritis medication Humira (adalimumab). The patent on Humira, the most used prescription medication in the world, will expire in 2023.
Ingham assigned the company a “Buy” rating in February, saying that ABBV management “appears to have outwitted and outflanked its opponents” before competing generics entered the market to compete with Humira.
Vertex Selected Despite having a high valuation, Vertex Pharmaceuticals (VRTX), a company that makes drugs for cystic fibrosis, performed well in 2022, increasing by almost 30%.
According to SA author Biologics, who assigned the stock a “Buy” rating in January, Vertex (VRTX) was trading at an appropriate price in terms of predicted earnings and cash-flow growth despite a little premium to competitors.
Argyll Rally Predicted
Gains that SA contributor Avisol Capital Partners anticipated led to the cardiorenal pharmaceutical Ardelyx (NASDAQ:ARDX) more than doubling in value this year following a catastrophic run in 2021.
In January, Avisol highlighted ARDX’s renal disease treatment tenapanor in recommending “Buy” for the stock.
The little likelihood of success is “very derisked” by the costs, according to Avisol.
When an FDA expert group decided to support the U.S. approval of tenapanor last month, Ardelyx (ARDX) saw a roughly 41% increase.
2023 SA Looking Ahead Some noteworthy biotech predictions for the coming year have already been made by contributors. Recently, Biotech Beast predicted that Rigel Pharmaceuticals (RIGL) might have “a potentially revolutionary 2023,” giving the business a high buy recommendation.
The author believes that the company’s license agreement with Forma Therapeutics, a division of Novo Nordisk (NVO) (OTCPK:NONOF), will be validated by the early approval and December launch of its myeloid leukemia medication Rezlidhia.
Contributor Chris Lau is positive on Beam Therapeutics (BEAM), despite the company suffering a 52% loss in 2022. There is just one candidate in the clinic for sickle cell disease, BEAM-101, and it is currently being tested in a Phase 1/2 trial.
Lau gives the stock a buy rating despite admitting that the investor sentiment against the gene-editing sector is now negative due to the company’s robust pipeline and $1 billion in cash.
Featured Image – Pexels © Chokniti Khongchum