Five hot healthcare stocks to watch as Omicron threat looms

Highlights

  • The Florida-based NRX Pharmaceuticals, Inc. develops novel therapeutics for central nervous system disorders and life-threatening pulmonary diseases.

  • The Pennsylvania-based Krystal Biotech, Inc. develops treatments for skin diseases. It earned no revenue in the September quarter of 2021.

  • Palatin Technologies, Inc. earned revenue of US$159,000 in the September quarter of 2021, compared to no revenue in the same period of 2020.

Healthcare stocks jumped on Monday as the Omicron threat loomed. The new Covid-19 variant detected in South Africa is considered the deadliest of all the variants. The World Health Organization (WHO) called it a cause of “concern” because of its high transmissibility.

The large-cap healthcare stocks saw a massive jump in intraday trading after Omicron’s news continued to pour in. But here, we discuss the top small-and-medium cap healthcare companies that basked in a sea of green on Monday.

Petros Pharmaceuticals, Inc. (NASDAQ: PTPI)

Market Capitalization – US$60.89 million
Single Day Gain – 91.39%
YTD gain – fell 5.68%

The New York-based Petros Pharmaceuticals specializes in men's health. The company develops, acquires, and commercializes therapeutics for various health problems in men.

For the September quarter of 2021, its consolidated net sales were US$2.14 million compared to US$3.46 million in the same quarter of 2020. The net loss was US$1.7 million against a net loss of US$3.3 million in the September quarter of 2020.

Its cash reserves were US$8,14 million on September 30, 2021, compared to US$17,14 million on December 31, 2020.

The stock closed at US$2.09 on November 26, 2021.

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NRX Pharmaceuticals, Inc. (NASDAQ: NRXP)

Market Capitalization – US$467 million
Single Day Gain – 20.0%
YTD gain – fell 66.68%

The Delray Beach, Florida-headquartered company develops novel therapeutics for central nervous system disorders and life-threatening pulmonary diseases.

The company earned no revenue in the September quarter of 2021, and its net loss was US$20.77 million compared to US$5.16 million in the corresponding quarter of 2020.

The company had US$38.9 million in cash as of September 30, 2021.

The stock jumped after it announced the completion of a study to identify clinical evidence showing improvement in covid patients suffering from respiratory issues after its Zyesami treatment.

The stock closed at US$6.75 on November 26, 2021.

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Krystal Biotech, Inc. (NASDAQ: KRYS)

Market Capitalization – US$1.9 billion
Single Day Gain – 121.65%
YTD gain – 48.36%

The Pittsburgh, Pennsylvania-based gene-therapy company develops and markets treatments for dermatological diseases. For the September quarter of 2021, it earned no revenue. Its net loss was US$15.58 million against a net loss of US$9.6 million in the same period a year ago.

Its cash and equivalents were US$287 million as of September 30, 2021, compared to US$268 million at the end of December 31, 2020. The stock surged on its positive top-line results from the pivotal GEM-3 trial of VYJUVEKTM for treating dystrophic EB.

Its stock closed at US$39.81 on November 26, 2021.

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Adagio Therapeutics, Inc. (NASDAQ: ADGI)

Market Capitalization – US$5.29 billion
Single Day Gain – 86.43%
YTD gain – 113% (since launch on August 6, 2021)

The clinical-stage biopharmaceutical company is based in Waltham, Massachusetts. The company develops and markets antibody-based solutions for infectious diseases.

It has developed the antibody ADG20 to fight SARS-CoV-2. The company has provided information about its potential against the Omicron SARS-CoV-2 variant. Adagio plans to apply for emergency use authorization (EUA) for its ADG20 to prevent and treat COVID-19.

It expects to receive the EUA in mid-2022 and produce around four million doses by then.

In the September quarter of 2021, it earned no revenue. Its net loss was US$60.38 million compared to a net loss of US$48 million in the September quarter of the previous year.

The cash and equivalents were US$478 million as of September 30, 2021.

The stock closed at US$25.12 on November 26, 2021.

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Palatin Technologies, Inc. (AMEX: PTN)

Market Capitalization – US$208 million
Single Day Gain – 53.34%
YTD gain – 33.18%

The Cranbury, New Jersey-headquartered company develops targeted treatments for diseases with unmet medical needs.

For the September quarter of 2021, the company earned revenue of US$159.5 thousand compared to no revenue in the same period of 2020. The net loss was US$7.11 million against a loss of US$3.94 million in the comparable quarter of the previous year.

It had cash and equivalents of US$53.4 million as of September 30, 2021.

The stock closed at US$0.5576 on November 26, 2021.

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Bottomline

The healthcare stocks rallied on Monday as concerns over the new coronavirus variant Omicron rose. The pandemic has been a blessing in disguise for the healthcare sector. The NYSE Healthcare Index (NYP.ID) gained 13.07% YTD. Investors, however, must exercise due diligence before investing in the stock market.

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