2 Biotech Stocks Wall Street Predicts Will Rally By More Than 150%

The Biotech industry has been in the limelight for quite some time. Companies directly or indirectly involved in COVID-19 related products such as vaccines and medicines are ramping up their production capacities as several countries are dealing with new variants of the virus…

Biotech companies with non-COVID drug pipelines, on the other hand, are focusing on tech integration and DNA synthesis in hopes of breakthrough development. The global biotech industry is expected to grow at a CAGR of 15.8% over the next seven years to reach $2.44 trillion by 2028.

Given this backdrop, Wall Street analysts expect the biotech stocks Sorrento Therapeutics, Inc. (SRNE – Get Rating) and Catabasis Pharmaceuticals, Inc. (CATB – Get Rating) to gain significantly in the upcoming months.

Sorrento Therapeutics, Inc. (SRNE – Get Rating)

SRNE is a clinical-stage and commercial biopharma company engaged in developing therapies for cancer, autoimmune, inflammatory, viral, and neurodegenerative diseases. The company operates through two segments: Sorrento Therapeutics and Scilex.

On June 24, SRNE received Emergency Use Approval and Import License from Mexico Authority COFEPRIS for its COVID-19 detection drug COVI-STIX™, which is to be launched this month. SRNE should benefit significantly from this launch.

SRNE’s total revenue increased 84.6% year-over-year to $14.26 million in the fiscal first quarter, which ended March 31. The company’s service revenue increased 192.4% from its year-ago value to $7.23 million. Its net income stood at $2.42 million, indicating a 103.5% improvement from the same period last year.

Analysts expect SRNE’s revenues to increase 237.5% year-over-year to $134.94 million in the current year. Moreover, revenue is expected to increase by 792.8% in the next year. The consensus EPS estimate of $1.71 for the next year indicates a 363.1% rise from the last year. Shares of SRNE have gained 42.4% over the past year, and 42.9% year-to-date.

Two Wall Street analysts that rated SRNE, rated it Buy. The median price target of $24.50 indicates a potential upside of 151.2% from its last closing price of $9.76. The price targets range from a low of $19.00 to a high of $30.00.

Catabasis Pharmaceuticals, Inc. (CATB – Get Rating)

Catabasis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, is engaged in the discovery, development, and commercialization of therapeutics. The company’s lead candidate is the QLS-215, a potential best-in-class plasma kallikrein monoclonal antibody in preclinical development for the treatment of Hereditary Angioedema.

CATB’s cash and cash equivalents balance rose 3,708.6% from the prior-year quarter to $121.99 million in the fiscal first quarter ended March 31, 2021. R&D expenses declined 50.9% year-over-year to…

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