February 4, 2023

Biotech giant Moderna (MRNA) missed consensus revenue and earnings per share estimates in the third quarter of 2022. In addition, it lost more than 17% in 2022. While analysts are bearish on MRNA’s growth, the outlook for the industry looks look rosy. Therefore, investors looking to invest in biotech stocks should consider buying Biogen (BIIB) and Jazz Pharmaceuticals (JAZZ) instead. Keep reading….



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Biotech giant Moderna, Inc. (MRNA) missed consensus revenue and earnings per share estimates by 4.6% and 18.6%, respectively, for the third quarter ended September 30, 2022. Total revenue was $3.36 billion, down 32.3% year-over-year, and earnings per share came in at $2.53, down 67.1% year-over-year.

In addition, revenue and EPS are expected to decline 32.6% and 57.5% year over year to $4.86 billion and $4.80 for the quarter ending December 2022. In addition, the stock has lost 21.7% last year and 17.3% year over year. to date.

Amid the increasing medical needs, the biotech industry is expected to thrive for the foreseeable future. According to Data Bridge Market Research, the biotechnology market is expected to grow at a CAGR of 29% from 2023 to 2030.

In addition, the SPDR shows S&P Biotech ETFs (XBI) 3.4% returns in the last month.

Therefore, investors looking to take advantage of the industry’s favorable growth prospects should consider high-quality biotech stocks Biogen Inc. (BIIB) and Jazz Pharmaceuticals plc (JAZZ) instead of mRNA.

Biogen Inc. (BIIB)

BIIB discovers, develops, manufactures and delivers therapies for the treatment of neurological and neurodegenerative diseases.

On December 19, 2022, BIIB reached an agreement with Genentech, a member of the Roche Group, on the commercialization and sharing economy for glofitamab. Glofitamab is a CD20xCD3 T-cell engaging bispecific antibody that is being developed by Roche for the treatment of B-cell non-Hodgkin’s lymphomas. BIIB is expected to realize substantial revenue growth from sales of glofitamab.

BIIB’s therapeutic program revenue against CD20 was $416.90 million for the third quarter ended September 30, 2022, up slightly year-over-year. Net income came in at $1.13 billion, up 244.7% year-over-year, while eps came in at $7.84, up 253.2% year-over-year.

Analysts expect BIIB’s revenue to reach $2.44 billion for the quarter ending December 2022. Earnings per share are expected to grow 2.7% year-over-year to $3.48 for the same period. It beat EPS estimates in three of the four lagging quarters. Over the past year, the stock is up 22.3% to close out the last trading session at $286.86.

BIIB’s strong foundations are reflected in her POWR ratings. The stock has an overall A rating, indicating a strong buy in our proprietary rating system. The POWR Ratings rate stocks on 118 different factors, each with its own weighting.

BIIB has an A rating for value, sentiment and quality. In the Biotech industry, it ranks number 7 out of 375 stocks. Click here for the additional POWR assessments for growth, momentum and stability for BIIB.

Jazz Pharmaceuticals plc (JAZZ)

Biopharmaceutical company JAZZ, headquartered in Dublin, Ireland, identifies, develops and commercializes pharmaceutical products for a variety of unmet medical needs in the United States, Europe and internationally.

On December 21, 2022, JAZZ and Zymeworks Inc. (ZYME) announced their agreement. JAZZ will continue with its exclusive development and commercialization rights to ZYME’s zanidatamab in key markets of the US, Europe and Japan.

Rob Iannone, MD, MSCE, executive vice president, global head of research and development of JAZZ, said, “This important milestone reinforces our confidence in advancing this therapy for cancer patients with significant unmet need.”

JAZZ’s total revenues were $940.65 million for the third quarter ended September 30, 2022, an increase of 12.2% year over year. Non-GAAP net income was $370.44 million, up 41.7% year-over-year, while non-GAAP EPS was $5.17, up 23.1% year-over-year.

For 2022, JAZZ revenue is expected to grow 18.3% year-over-year to $3.66 billion. Earnings per share is expected to grow 9% year-over-year to $17.69 in 2022. It topped earnings per share estimates in three of the next four quarters. Over the past year, the stock is up 25.3% to close out the last trading session at $158.46.

JAZZ has an overall A rating, which equates to a strong buy in our proprietary rating system. In addition, it has an A grade for Value and a B for Growth and Sentiment. JAZZ is number 5 in the same industry. Click here for the additional POWR ratings for JAZZ (Momentum, Stability, Quality).


BIIB shares rose $0.74 (+0.26%) in premarket trading on Thursday. Year-to-date, BIIB has gained 19.56%, versus a -17.36% increase in the benchmark S&P 500 index over the same period.


About the author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master’s degree in economics, she helps investors make informed investment decisions through her insightful commentary.

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