Investors Business Daily recently posted an article about “Finding the best biotech companies to invest in”. The article goes on to say that investing in this field is tricky, clinical plans don’t always come to fruition, and biotech stocks can often suffer at the hands of regulatory decisions from the Food and Drug Administration.
The article discusses Corcept Therapeutics (NASDAQ: CORT) which was ranked 10th out of the 150th fastest-growing stocks at the time compared to North American Construction Group (NYSE: NOA) with an average annual growth rate of 341%. CORT, over the past 12 months has traded basically flat.
The article discusses Vertex Pharmaceuticals (NASDAQ: VRTX) and how on MarketSmith’s list of fastest-growing stocks ranks no. 19, but since the writing of that article, VRTX has traded basically flat even considering its partnership with Crispr Therapeutics (NASDAQ: CRSP).
Lastly the article in IBD discussed Alexion Pharmaceuticals (NASDAQ: ALXN), the company that makes Soliris, while allowing Amgen (NASDAQ: AMGN) to launch a biosimilar copycat. Since the article was published, ALXN is down about 10%.
This is not to say that biotechs are no longer a good investment. They are for the long term, if you buy quality.
But if you’re looking to deploy a bit of risk capital in the space, you have to find a niche.
Have a look at PetVivo (OTCQB: PETV).
PetVivo is an emerging biomedical device company leveraging the investments in the human biomaterials and medical device industries to commercialize therapeutics to pets.
The company has a portfolio of 19 patents that protect the company’s pipeline of 16 products for the treatment of animals and people. Its lead product “Kush” is a veterinarian-administered intraarticular injection for the treatment of osteoarthritis in dogs and horses is scheduled for expanded commercial sales later this year.
Currently trading at around $.70 per share, with a market cap coming in at around $16 million, the stock was recently given a target price of between $1.74 and $2.32 per share by Marble Arch Research. You can download the full report here:
Marble Arch Research notes that PetVivo achieved a major funding milestone last month, removing the main obstacle to its product commercialization goals. Commercial production of its disruptive osteoarthritis treatment device, Kush®, for canines and equines, a market we estimate is worth ~$3BN in the US alone, is due to commence in September 2020.
The report continues “At ~1x FY23 sales, the stock is substantially undervalued relative to its comps mostly trading in a comparable 3X-4X P/S multiple range.”
Just recently a new successful Kush study came to light when Just 4 weeks ago, Fender Bender, a racehorse suffering from osteoarthritis, was put up for sale and claimed for $3,000.00 and the new owner treaded him with PetVivo’s Kush. Fender Bender won at Canterbury Park on August 4, 2020.
PetVivo is benefiting from trial error on the human side with a smaller barrier to approval for pets.
According to The American Pet Products Association, almost 85 million households have a pet and over the last 30 years pet ownership has gone from 56% to 68% of all households.
It seems that PetVivo has value here. If you’re looking for a biotech that has not enjoyed a massive run yet, Pet Vivo may be the solution.