Investing in biotech stocks can bring massive returns but since these companies develop drugs and other products that have to go through a rigorous and costly process before approval sometimes there are losses. Companies involved in the sector are built on the back of the success of their novel drugs and the FDA’s approval to boost the stock. In the past year, Canadian biotech stocks had a rollercoaster that deepened with the COVID-19 pandemic but some biotech stocks holding massive potential.
Kodiak Sciences among Biotech stocks with fast growth momentum
The greatest impediment for biotech stocks is getting FDA approval which may take years of testing and trials for a drug. For investors, it means that they will wait for long before getting to know if a product or drug that the company is developing will hold potential. The biotech sector has performed considerably well in line with the industry.
One such biotech stock that has shown fast growth momentum in the last 12 months is Kodiak Sciences Inc. (NASDAQ:KOD) whose total return in the period if 478.6%. The company focuses on the development and commercialization of drugs used in the treatment of retinal diseases. In 2019 Kodiak completed a vital clinical trial of its KSI-301 a therapy drug used in the treatment of particular types of macular degeneration.
Medicenna Therapeutics stock grew 386%
Another biotech stock that has exuded significant growth in 2019 is Medicenna Therapeutics Corp (OTCMKTS: MDNAF) whose stock gained 386% from December 31st, 2018. The company has advanced its lead orphan drug MDNA55 into Phase 2bin recurrent glioblastoma treatment. Data from the study indicated that the company’s lead drug candidate has good survival benefit compared to currently used standard of care.
The company was expected to meet the FDA over the BLA filing for MDNA55 according to Mackie Research’s Andre Uddin. The meeting was expected in the first quarter and the company expected to release the final data from the Phase 2b study in May.
Theratechnologies expecting net revenue for 2019 to be $63 million
Theratechnologies Inc. (NASDAQ:THTX) is one of the biotech stocks that is looking to make a comeback after it reporting losses of up to $294 million since 2017. The company’s drugs have massive potential because it focuses on unmet medical needs. The commercial-stage biotech company focuses on various therapies for orphan medical conditions such as for HIV-patients by improving the quality of life of patients.
The company’s lead drug Egrifta is important in the treatment of lipodystrophy associated with HIV. However, the drug shows new potential, and Theratechnologies are exploring the use of the drug in the treatment of fatty liver disease. Egrifta has shown potential in dissolving liver disease and now the company is considering expansion of the scope of the drug.
The company announced preliminary Q4 2019 and full-year result and it expects revenue to grow 40% from 2018 to $63 million. Theratechnologies expects net revenue in Q4 to be $16.5 million and those from Egrifita to be around $8.7milion.
