NBIX to ITCI: Five mid-cap healthcare stocks to watch in July

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NBIX to ITCI: Five mid-cap healthcare stocks to watch in July

 NBIX to ITCI: Five mid-cap healthcare stocks to watch in July
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Highlights:

  • Neurocrine Biosciences, Inc. (NASDAQ: NBIX) stock has a P/E ratio of 136.58 and the forward P/E for one year of 51.55. 
  • Organon & Co. (NYSE: OGN) has a dividend yield of 3.22% with an annualized dividend of US$1.12.
  • Acadia Healthcare Company, Inc.'s (NASDAQ: ACHC) P/E ratio is 25.46, and the forward P/E for one year is 22.72. 
  •  

The healthcare sector comprises companies engaged in discovering and developing drugs, providing medical devices, insurance, hospitals, and other healthcare-related services.  

The sector gained attention during the pandemic, and a few companies' stocks sharply rose. However, many small and mid-cap companies in the healthcare sector are in the research phase and do not generate any revenue. 

The larger ones, such as Johnson & Johnson (JNJ), Eli Lilly and Company (LLY), and AbbVie Inc. (ABBV), have generated positive returns YTD. On the other hand, other large-cap stocks, Pfizer, Inc. (PFE) and Moderna, Inc. (MRNA), have declined in the same period. 

Here we discuss five mid-cap health care stocks which remained positive YTD

Neurocrine Biosciences, Inc. (NASDAQ: NBIX)

Price range in last 52 weeks: US$108.02 to US$71.88

Neurocrine Biosciences Inc is a pharmaceutical company located in San Diego, California. It is focused on developing drugs for the central nervous system and endocrine-related categories.

The company reported a revenue of US$310.6 million for the first quarter ended March 31, 2022, compared to US$236.6 million for the same quarter a year ago. Its net income came in at US$13.9 million or US$0.14 per share diluted compared to US$32.1 million or US$0.33 per share diluted for the March quarter of 2021.

It's cash and equivalents were US$270.2 million as of March 31, 2022, from US$340.8 million as of December 31, 2021.

NBIX has a market capitalization of US$9.4 billion. Its P/E ratio is 136.58, and the forward P/E for one year is 51.55. 

The stock closed at US$98.46 on June 29, 2022. 

Organon & Co. (NYSE: OGN)

 

Price range in last 52 weeks: US$39.48 to US$28.42

New Jersey-based Organon & Co is a pharmaceutical company engaged in developing health solutions for women's health, biosimilars, and established brands. 

For the quarter ended March 31, 2022, its net income was US$348 million on revenue of US$1.57 billion. The net income and revenue for the March quarter of 2021 were US$399 million and US$1.51 billion, respectively. Its earnings per share diluted for the March quarter in 2022 and 2021 and came in at US$1.36 and 1.58, respectively. 

The company had cash and equivalents of US$694 million as of March 31, 2022, versus US$737 million as of December 31, 2021. 

The stock has a market capitalization of US$8.65 billion. Its P/E ratio is 6.7, and the forward P/E for one year is 6.50. The stock has a dividend yield of 3.22% with an annualized dividend of US$1.12.

OGN stock closed at US$34.57 on June 29, 2022. 

 

Legend Biotech Corporation (NASDAQ: LEGN)

 
Price range in last 52 weeks: US$58.00 to US$30.75

Somerset, New Jersey-based Legend Biotech Corp is a clinical-stage biopharmaceutical company. It focuses on discovering and developing novel cell therapies for oncology and other indications. 

Its revenue for the three months ended March 31, 2022, was US$40.8 million compared to US$13.7 million for the March quarter of 2021. The increase was due to revenue recognition from additional milestones achieved. It has not generated any revenue from product sales to date.

Its net loss was US$41.1 million, or US$0.13 per share, compared to a net loss of US$80.9 million, or US$0.30 per share, for the March quarter of 2021.

As of March 31, 2022, the company had around US$377.8 million in cash and cash equivalents.

The stock has a market capitalization of US$8.42 billion. It closed at US$54.44 on June 29, 2022.  

Acadia Healthcare Company, Inc. (NASDAQ: ACHC)

 
Price range in last 52 weeks: US$76.69 to US$50.07

Acadia Healthcare Co Inc provides healthcare facilities in the US. This Franklin, Tennessee-based company acquires and develops behavioral healthcare facilities, such as Acute inpatient psychiatric facilities and specialty treatment facilities, which contribute most of its revenue.

For the quarter ended March 31, 2022, the company earned a revenue of US$616.7 million compared to US$551.2 million a year ago. It posted a net income of US$61.9 million or US$0.67 per share diluted compared to US$10.5 million or US$0.11 per share diluted for the March quarter of 2021. 

It reported cash and cash equivalents of US$140.4 million and US$133.8 million on March 31, 2022, and December 31, 2021, respectively.

The stock has a market capitalization of US$6.13 billion. Its P/E ratio is 25.46, and the forward P/E for one year is 22.72. 

ACHC stock closed at US$70.20 on June 29, 2022. 

 

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Intra-Cellular Therapies Inc. (NASDAQ: ITCI)

Price range in last 52 weeks: US$66.00 to US$28.40

Intra-Cellular Therapies Inc is a biopharmaceutical company based in New York. It develops novel drugs to treat central nervous system diseases.

The company generated a revenue of US$35 million for the three months ended March 31, 2022, compared to US$15.9 million in the same quarter the prior year. It incurred a net loss of US$72 million or US$0.78 per diluted share compared to the net loss of US$0.65 per diluted share in 2021’s March quarter.

Its cash and equivalents and restricted cash totaled US$130.7 million as of March 31, 2022, versus US$131.4 million as of March 21, 2021.

The stock has a market capitalization of US$5.5 billion. It closed at US$58.31 on June 29, 2022. 

Bottom line:

Historically, the healthcare sector has been in good stead and shown resilience in a turmoiled bearish market compared to other industries. 

Still, the investors must analyze the stock fundamentals and external factors before selecting stocks for investment. 

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