Are these 3 AIM-listed biotechnology stocks a good buy?

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Highlights

  • Investors looking to explore investment opportunities in the biotechnology segment can invest in growth-orientated biotechnology companies.
  • Genedrive Plc, ImmuPharma Plc, Ergomed Plc are three AIM-listed biotechnology stocks in focus.

Investors looking to explore investment opportunities in the biotechnology segment can invest in growth-orientated biotechnology companies. The biotechnology segment is part of the broad pharmaceutical industry which does research on living systems and organisms to develop drugs or make products.

Many listed companies are engaged in this segment to create novel therapeutics to treat various diseases, carrying out clinical trials and development of different drugs and are also available at a lower price compared to large pharmaceutical companies.

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Let us discuss three AIM-listed biotechnology companies and explore their investment prospects:

Genedrive Plc (LON: GDR)

FTSE AIM-listed company operates as a molecular diagnostics company providing a diagnostics platform for contagious diseases and pathogen detection. The platform provided by the company is low cost, simple to use and provide a robust diagnosis.

For the financial year ended 30 June 2021, the company reported revenue of £0.7 million, while its loss for the financial year was £0.69 million. The company is currently in the growth stage of the business cycle, where it is exploring different therapies and treatments through clinical trials and is likely to launch two new products based on the point of care (POC) diagnostic. Two products are Antibiotic Induced Hearing Loss for newborn children and a high throughput test for Covid-19, which is designed to use on a third-party machine. The launch of these products might help boost the company’s revenue and profitability.

Genedrive Plc currently trades at GBX 18.85, down by 1.82% on 09 November 2021 at 10:32 am GMT+1 with a market cap of £17.62 million.

ImmuPharma Plc (LON: IMM)

The company is engaged in the research and development of peptide-based therapeutics used to treat metabolic diseases, cancer, and other autoimmune diseases.

The company’s leading project is Lupuzor™ which is used to treat lupus and other autoimmune diseases. It is currently undergoing a clinical trial and has signed an agreement with Avion Pharmaceuticals for exclusive Trademark and development of Lupuzor™. Both companies are working closely on the clinical trials, with Avion Pharmaceuticals agreeing to fund a new international phase 3 trial and launch its product in the US market. ImmuPharma Plc is also carrying out research and development of other drugs and reported R&D expenditure of £1.3 million, while its loss was at £3.7 million for the six months ended 30 June 2021.

ImmuPharma Plc currently trades at GBX 7.20, up by 7.46% on 09 November 2021 at 10:32 am GMT+1 with a market cap of £16.76 million.

Ergomed Plc (LON: ERGO)

The company provides clinical trials planning and other services to its clients from the pharmaceutical sector. It also offers medical information services, management, and drug safety.

The company reported robust performance in the first six months of 2021. It reported a 38.8% rise in revenue at £56 million, while its gross profit rose by 24.3% at £23 million during the period. Higher revenue was attributed to growth in service fees revenue. Also, the company continue to expand its presence in the international market. The increase in revenue and profitability is expected to continue in upcoming quarters, driven by the growth in the order book. The company’s future contracted order book stands at £227.8 million as of 30 June 2021.

Ergomed Plc currently trades at GBX 1,465, down by 0.34% on 09 November 2021 at 10:32 am GMT+1 with a market cap of £722.02 million.


 

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