Healthcare 846

Healthcare stocks—while not the top performers this year—have posted a decent return of 11.9%, on average.

Abbott Laboratories (ABT) | Daily Alert September 17
Abbott Laboratories (Rated “B”) offers medical testing, medical devices, pharmaceuticals, nutritional products, and related services.

Abbott has also been at the forefront of COVID-19, in the background making rapid COVID-19 tests. Its ID NOW molecular test and the BinaxNOW antigen test allow for faster diagnoses than other tests that require lab work.

It looks like longer-term COVID-19 testing demand is here to stay. That’s because employers, schools, sports leagues, governments, and others are looking to get more workers back in the office and back on the field. Rapid testing will help that.

And again, Abbott isn’t a one-trick pony. That’s why second-quarter sales jumped more than 39% year over year to $10.2 billion. The results easily beat the average forecast of $9.69 billion. Sales in non-COVID-19 operations also rose 11% from 2019’s pre-pandemic levels. Moreover, driven by growth in all four business segments, adjusted earnings more than doubled to $1.17 per share. This beat analysts’ $1.02-per-share estimate.
Mike Larson, Safe Money Report, 1-877-934-7778, weissratings.com, September 2021

Glaukos Corporation (GKOS) | Daily Alert September 23
Glaukos is a medical technology company focused on innovative therapies for the treatment of glaucoma, corneal disorders, and retinal diseases.

There is no cure for glaucoma, and patients usually begin treatment with eye drops. But many eventually opt for cataract surgery. Glaucoma currently impacts three million Americans, and the usual surgery is invasive and can have serious side effects, including bleeding and retinal detachment.

In contrast, Glaukos’ revolutionary product is the iStent, a tiny L-shaped titanium implant that has helped thousands of people with glaucoma successfully manage intraocular pressure. The device received regulatory approval from the FDA in 2012. Glaukos launched its next-generation iStent inject device in 2018 and during its second-quarter earnings call, Glaukos announced that it expects the new iteration—the iStent infinite—to receive regulatory approval before the end of this year, though it has already been approved in Australia and India.

Glaukos has the most comprehensive pipeline in ophthalmology. New product launches will broaden its market opportunities, including acquisitions and expansion into international markets.

The timing to invest in the stock is logical since its share price is down more than 49% from its 52-week high. Its balance sheet is solid with more than $400 million in cash.
Ian Cooper, The Cheap Investor, support@thecheapinvestor.com, September 2021

AbbVie Inc. (ABBV) | Daily Alert October 7
AbbVie hasn’t recovered from the selloff after the FDA announced it will require a warning label on its new immunology drug Rinvoq one month ago. It’s not good news because this is a star drug that AbbVie needs to overcome lost revenues when Humira loses its U.S. patent in 2023. But it isn’t a game changer. The story is still intact. Meanwhile, ABBV has strong technical support around the current level. BUY
Carl Delfeld, Cabot Explorer, cabotwealth.com, 978-745-5532, September 16, 2021

Synaptogenix, Inc. (SNPX) | Daily Alert October 11
Synaptogenix’s drug, Bryostatin, activates something called protein kinase C (PKC) epsilon that is already in the brain from birth and helps build the synaptic wiring in the brain in one’s early years. But its ability to do so can weaken over time, especially in Alzheimer’s patients. Bryostatin reactivates PKC epsilon and that neural/synaptic network which helps rebuild connections in the brain.

The company has done two pilot Phase 2 studies that were placebo controlled, and kicks it up a notch testing on moderate to moderately severe Alzheimer’s patients … and they are seeing improvement (that increases with time) especially in moderates, not just a slowing of decline.

A 100-patient 6+ month third trial, a full-fledged Phase 2, is now 80% enrolled and hopefully will be fully enrolled by year end, with readout in ~Q3 2022. The trial is supported by a $2.7 million grant from the prestigious NIH (National Institutes of Health), which will cover about 25% of the cost. The drug has been safely administered in over 1,600 patients (1,500 of these were in failed testing on cancer patients) and the current trial has also reported no safety issues to date.

Despite trading 300,000 shares on an average day, SNPX has only 6 million shares outstanding. This means its market cap is barely $60 million dollars, as compared to Anavex’s $1.3 billion and Cassava’s $2.5 billion. Yet, Synaptogenix is the only one that has bonafide placebo-controlled studies showing improvement in Alzheimer’s disease, especially in more advanced cases.

The potential market cap for a company that has a treatment that really helps Alzheimer’s patients is about $20 billion (at least 2 times revenue for a $10 billion/yr. drug). Even if the company has to issue another 30 million shares (which would raise almost $300 million … way more than needed) to get there, that would imply a market price of over $500 a share, in theory … ($20 billion/36 million shares).

Don’t bet the farm, these biotechs can be risky and volatile as we well know, but- Buy.
Tom Bishop, BI Research, biresearch.com, October 4, 2021

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