While the biotech industry lost some momentum earlier this year with investors focusing on outdoor stocks to capitalize on the economic recovery, the recent spread of the hyper-contagious Delta variant of coronavirus, and consequent resurgence of COVID-19 cases in several countries, is driving renewed interest in the industry. This is evidenced by the…
he rising prevalence of chronic maladies, such as cancer and diabetes, is also driving an increasing need for the development of new, advanced drugs. In addition, technological innovations and rising investment in this space should keep bolstering the industry’s growth. According to a Global Market Insights report, the biotechnology market is expected to grow at a 9.4% CAGR between 2021 – 2027.
Given this backdrop, we think biotech companies ASLAN Pharmaceuticals Limited (ASLN – Get Rating), Aquestive Therapeutics, Inc. (AQST – Get Rating), and Aravive, Inc. (ARAV – Get Rating) possess immense growth potential based on their innovative product portfolios. And Wall Street analysts expect shares of these companies to rally significantly in the near term.
Headquartered in Singapore, ASLN is a clinical-stage immunology-focused biopharmaceutical company that is developing various innovative treatments. The company’s clinical portfolio comprises ASLAN004 and ASLAN003. Also, it has a joint venture with Bukwang Pharmaceutical Co., Ltd. to develop immuno-oncology therapeutics that target the AhR pathway.
On July 13, ASLN closed a secured loan facility provided by K2 HealthVentures (K2HV). It is expected to use the proceeds to advance the clinical development of ASLAN003 and for general corporate purposes. Dr. Carl Firth, the company’s CEO, said, “These resources provide additional working capital, strengthen our balance sheet, and enhance our financial flexibility by extending our expected cash runway through late 2023, as we look forward to expanding our clinical activities for ASLAN003.”
ASLN’s research and development expenses for the first quarter, ended March 31, 2021, came in at $3.75 million, up 59.3% year-over-year. However, an increase in R&D expenses was primarily driven by manufacturing expenses incurred in preparation for the Phase 2b trial of ASLAN004. The company’s total assets increased 535.6% sequentially to $102.22 million. Its total liabilities decreased 19.8% sequentially to $21.05 million.
Analysts expect ASLN’s EPS to decline 4.2% in its fiscal year 2022. The stock has gained 53.6% year-to-date to close yesterday’s trading session at $2.92.
Wall Street analysts expect the stock to hit $8 in the near term, indicating a potential 174% upside. All three analysts that have rated ASLN rated it a Buy.
Specialty pharmaceutical company AQST in Warren, N.J., focuses on developing treatments for diseases related to the central nervous system (CNS). Its CNS programs consist of a pipeline of products that include Libervant, Sympazan, and AQST-117. It also has a pipeline of products under partner programs, including Suboxone and APL-130277 to treat opioid dependence and Parkinson’s disease.
AQST announced on July 19 that the U.S. Food and Drug Administration (FDA) has accepted for filing the resubmission of the New Drug Application (NDA) for Libervant (diazepam) Buccal Film for the management of seizure clusters. If approved, refractory epilepsy patients could…
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