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4 Biopharma and Pharmaceutical Stocks With Game-Changing Catalysts Coming

Needless to say, the biopharmaceutical and pharmaceutical sectors are probably the most susceptible to binary and headline catalysts than any other in the investing world, because so often the catalysts can be a huge factor in the stock price. We constantly scan both sectors at 24/7 Wall St. looking for the companies with upcoming data or news that can truly be game-changing.

A new Jefferies research report highlights four top companies that could be looking at catalysts that in the very near term could have a huge impact on the stocks.

AMAG Pharmaceuticals

The company recently posted weak sales of a top drug and got hit. AMAG Pharmaceuticals Inc. (NASDAQ: AMAG) has a diverse portfolio of products in the areas of maternal health, anemia management and cancer supportive care. It continues to work to expand the impact of these and future products for patients by delivering on its aggressive growth strategy, which includes organic growth, as well as the pursuit of products and companies that align with AMAG’s existing therapeutic areas or those that could benefit from its proven core competencies.

The stock hit 52-week lows recently and is down huge since July. Jefferies notes that AMAG reported very slow Makena sales, and the current valuation implies no sales at all after the exclusivity expires in 2018. The weakness was attributed to sales force integration issues and higher Medicaid mix. Stock also has been pressured by its pipeline acquisition model. Jefferies says AMAG received a Complete Response Letter (CRL) from the FDA for the drug and it could delay the launch. The FDA issues a CRL when it wishes to communicate to a company that an application to market a drug (NDA, new drug application) will not be approved in its present form. It also indicates that the review of the application by the FDA has been completed.

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The bottom line, at current levels, down a huge 58% in four months, not only is there upside, but it is possible the company becomes a takeover target. It should be noted purchase of these shares would only be suitable for very aggressive, risk-tolerant accounts.

The Jefferies price target for the stock is a gigantic $70, and the consensus target is $72.14. Shares...


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