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After the mad rush of 2020, where does the market go from here? Major progress has been made in the race for the COVID-19 vaccine, but the near-term picture remains unclear, blurred by the resurgence of the virus and the stimulus deadlock on Capitol Hill.
At times like these, big investors can serve as inspiration, namely billionaire Israel “Izzy” Englander.
Who exactly is Englander? The legend, who started trading stocks when he was in high school, began his internship career at investment firm Oppenheimer, before buying a seat on the US Stock Exchange, where he would become a broker, trader and specialist.
In 1989, together with Ronald Shear, Englander founded the hedge fund Millennium Management. As proof of his excellent results, the guru took the $ 35 million the fund was created with and turned it into more than $ 40 billion in assets under management. With his personal net worth of $ 7.2 billion, it’s no wonder Wall Street pays attention when Englander makes a move.
With that in mind, we focused on Millenium’s latest 13F deposit, which discloses the shares the fund recovered in the third quarter. By stalling on two tickers in particular, the TipRanks database revealed that the two names are getting a consensus from “Strong Buy” analysts. Additionally, the analyst community sees huge upside potential for everyone.
G1 Therapeutics (GTHX)
Bringing a deep understanding of the biology of cancer and extensive drug discovery experience, G1 Therapeutics works to develop therapies that could potentially improve the lives of patients struggling with the deadly disease. Ahead of a key regulatory decision, the street beats the table on this name.
During the third quarter, Englander and Millennium acquired a new stake in GTHX. By pulling the trigger of 555,937 shares, the stake is valued at $ 6,421,000.
Turning to the analyst community, Needham’s Chad Messer tells his clients he has high hopes ahead of the Feb. 15 PDUFA date for trilaciclib, his treatment designed to improve outcomes for cancer patients treated with chemotherapy. The therapy’s NDA was accepted in August for priority review based on the results of three randomized clinical studies in small cell lung cancer (SCLC), with FDA indicating it does not plan to hold a meeting of the advisory committee (AdComm).
Since trilaciclib is the first CDK4 / 6 inhibitor to be used to treat chemo-induced bone marrow toxicity, Messer maintains that the absence of AdComm is “significant”. Explaining this, he said, “We believe this reflects the agency’s assessment of unmet need, its comfort with the safety profile of the CDK4 / 6 class and the efficacy profile of trilaciclib.”
GTHX will also focus on the inclusion of trilaciclib in the NCCN guidelines. It should also be noted that a pivotal phase 3 study evaluating the candidate in metastatic colorectal cancer (mCRC) is expected to start by the end of the year.
To add to the good news, GTHX and its partner, Boehringer Ingelheim, are preparing for the commercial launch of trilaciclib, with companies covering around 2,500 treating oncologists and providing educational materials on the use of trilaciclib before treatment and the benefits of multi -line preservation.
If this was not enough, the rintodestrant (its selective estrogen receptor degrader (SERD) in development for the treatment of estrogen receptor positive (ER +) breast cancer) combined with palbociclib was able to complete recruitment earlier. than expected, reflecting “the allure of an all-oral treatment regimen during a global pandemic,” in Messer’s advice. With a data reading expected in the second quarter of 2021, the analyst believes that a “reading positive could turn out to be a significant value driver ”.
In keeping with his bullish approach, Messer reiterated a buy note and price target of $ 74, indicating upside potential of 417%. (To look at Messer’s record, click here)
Do the other analysts agree? They are. Only purchase ratings, 3 to be exact, have been issued in the past three months. Therefore, the message is clear: GTHX is a strong buy. Considering the average price target of $ 59, stocks could rise 312% next year. (See the analysis of the GTHX share on TipRanks)
Epizym (EPZM)
Also fighting cancer, as well as other serious diseases, Epizyme wants to find new treatments thanks to new epigenetic drugs. Even though the company is facing headwinds when it comes to its recent product launch, several members of the street believe that great things are in store.
Millenium bought 461,258 shares in the third quarter, the purchase reflecting a new position for the hedge fund. As for the value of the operation, it lands at $ 5,503,000.
Writing for Wedbush, 5-star analyst David Nierengarten points out that the pandemic has limited oncologist visits and, as a result, sales of Tazverik (the company’s follicular lymphoma treatment) have been below expectations. He points out that “the pandemic shifts the launch curve towards an ‘incidence model’ rather than a prevalence model, because the patient pool is limited if they delay visits to the office”, patients waiting to be done. heal until they experience symptoms of progression.
In addition, although the launch is virtual and awareness among doctors is high, doctors are against prescribing a new drug without examining the patient in person. That being said, Nierengarten remains optimistic about the therapy.
“Despite these headwinds, Tazverik failed to meet our estimates, and it is gaining market share, notably with initial second-line sales. We expect more significant second-line sales to start in 2021 and have them more gradually integrated into our launch curve, ”the analyst explained.
Regarding the timing of therapy, Nierengarten argues that it is too early to draw any conclusions. However, it highlights the fact that the durability of the response was relatively long and the patients were treated after the progress of the registration study. “In addition, the headwind against the change in therapy turns into a tailwind from Tazverik maintenance once a patient is on treatment. This will likely contribute more significantly to 2H21 revenue and potential revenue outperformance, ”he added.
Summing up, Nierengarten commented: “At current levels, we think investors are too negative about Tazverik’s potential and patience should be rewarded.”
Based on all of the above, Nierengarten sides with the bulls, reiterating an outperformance rating and a price target of $ 27. This goal reflects his confidence in EPZM’s ability to climb 122% higher next year. (To look at Nierengarten’s record, click here)
Most other analysts echo Nierengarten’s sentiment. 3 purchases and 1 wait add up to a strong consensual purchase note. With an average price target of $ 23.25, the upside potential stands at 91%. (See EPZM stock market analysis on TipRanks)
To find great ideas for health stocks traded at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks.
Warning: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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