2 Growth Stocks That Are Unexpectedly Crushing the Bear Market

It’s no surprise that investors crave stocks that can keep climbing when everything else in the market goes down. Most businesses don’t have the special sauce it takes to reassure shareholders in times of economic uncertainty, and some that are likely to be catalysts for higher earnings or access to cash-cow market segments that competitors don’t. are – or both.

In that vein, below are two biomedical growth stocks that are crushing the bear market. And both of these companies are poised for future success due to their upcoming milestones and strong earnings performance, so they could be of interest to long-term investors.

1. Ionis Pharmaceuticals

Buoyed by favorable clinical trial data readouts and success with regulators, Ionis Pharmaceuticals (IONS -0.83%, The market has gained 16% this year compared to a drop of over 13%. Although the business has three drugs on the market and its latest quarter revenue grew 27.2% year over year, it remains narrowly unprofitable. But that could change relatively soon, thanks to an especially lucrative program that is nearing the end of its pivotal trials.

On June 21, the company announced that an interim analysis of a Phase 3 clinical trial investigating its drug candidate epletrons had met both primary endpoints of the study. This means that the chances of getting approved by regulators are quite good. Ionis expects to file a new drug application (NDA) with the US Food and Drug Administration (FDA) later this year. Eplanarsen is being investigated for its merit in the treatment of hereditary transthyretin-mediated amyloid polyneuropathy (ATTRV-PN), a rare and serious chronic disease.

Most importantly for investors, management thinks commercialization of Applantorson will be worth billions of dollars a year at peak sales, and it’s also the company’s most attractive near-term opportunity. Right now, Ionis’ 12-month revenue is only around $840.7 million, so Appletorson’s contribution could be massive. In other words, it should come as no surprise that Ionis is beating the bear market as investors are pricing in the potential for increased cash flow from near-term approval.

At the same time, some projects of its first phase are also going on fast. On June 13, FDA regulators granted their request for an orphan drug designation for its candidate named ION582, a drug intended to treat the rare hereditary disease Angelman syndrome. The orphan designation ensures that it will receive some tax credits, some clinical trial fee waivers, and ultimately more revenue from the eventual commercialization of ION582 than it might have otherwise. However, it is currently only in phase 2 clinical trials. On July 28, the company announced positive results from a phase 2B trial of one of its anti-clotting treatments called phasomersan, clearing the way for future development.

Overall, this is another positive development that could lead to more money down the line, and it certainly helps when the market is volatile. growth stock like jonis

2. Jazz Pharmaceuticals

With its shares up 18% this year, Jazz Pharmaceuticals (jazzy 1.13%, There is no problem in outperforming the stock market. Although it is currently unprofitable, the company expects to make $5 billion in annual sales in 2025, a significant increase from 12-month revenue of $3.3 billion.

To achieve that goal, it will rely on ramped-up revenues from recently launched drugs like Zyvav, which treat idiopathic hypersomnia, a rare sleep disorder. Jazz received an orphan drug designation for Zyvav, and it’s the only FDA-approved treatment for idiopathic hypersomnia, so it will have a market for now—and most likely for some time. This should be music to investors’ ears.

Separately, the company is aiming to commercialize its epilepsy drug Epidiolex in additional markets in Europe, with France being the largest. Epidiolex is already approved in the US, and therefore bringing it to market in other countries will undoubtedly be realize higher revenue growth, In Q1, sales of the drug brought in $157.9 million, which management argues is the beginning of its scale. It will also serve to test the drug for additional indications so that it can generate even more income in the future.

As if the prospect of selling significantly higher in the short term isn’t enough to justify its outperformance, it will also report six separate test readouts between now and 2024, each of which is an opportunity for the stock to do well. . news. Hence, now may be a favorable time to buy the shares, especially considering the progress made so far in realizing its ambitions for the next few years.

Alex Carchidi Have no position in any of the stocks mentioned. The Motley Fool has posts and recommends Ionis Pharmaceuticals. The Motley Fool has one Disclosure Policy,

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