Top five biotechnology stocks to explore that are under US$100

Highlights

  • Gilead Sciences, Inc’s (NASDAQ: GILD) dividend yield is 3.95%; the stock gained 23.38% YTD.
  • Celldex Therapeutics, Inc. (NASDAQ: CLDX) stock rose 215% YTD. It closed at US$55.19 on Sep 7.
  • Avid Bioservices, Inc’s (NASDAQ: CDMO) YTD return is about 104%. The stock closed at US$23.58 on Sep 7.

Biotechnology stocks are healthcare companies that use living organisms and their derivates to develop products, such as vaccines and antibiotics.

Here we discuss five biotech stocks valued under US$100, with a two-digit year-to-date growth.

Gilead Sciences, Inc. (NASDAQ: GILD)

Gilead is a Foster City, California-based company and develops therapies for diseases like hepatitis B, C, and HIV. The company has a market capitalization of US$90 billion. Its P/E ratio is 17.5, the dividend yield is 3.95%, and the annualized dividend is US$2.84.

Its revenue was US$6.2 billion for the quarter ended June 30, 2021, compared to US$5.1 billion in the comparable quarter the previous year. The net income was US$1.5 billion or US$1.21 per share diluted against the net loss of US$(3.34) billion or US$(2.66) per share diluted for the same quarter of 2020. The cash and cash equivalents were US$3.38 billion as of June 30, 2021. The company was founded in 1987 and launched its IPO in 1992.

The stock closed at US$71.19 on Sep 7. It gained 23.38% YTD.

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Celldex Therapeutics, Inc. (NASDAQ: CLDX)

The Hampton, New Jersey-headquartered Celldex develops immunotherapy technologies and cancer biologics. The bio-pharmaceuticals company has a market capitalization of US$2.6 billion. It does not pay dividends.

For the June quarter of 2021, the company earned revenue of US$3.48 million compared to US$236 million in the previous year’s corresponding period. The company incurred a net loss of US$(13.37) million or US$(0.34) per share diluted in the June quarter of 2021 against a net loss of US$(11.03) million or US$(0.50) per share diluted in the same quarter of 2020.

The company had US$43.45 million in cash and cash equivalents at the end of June 30, 2021. Celldex was established in 1983 and went public in 1986. The stock gained 215.01% YTD. It closed at US$55.19 on Sep 7.

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Vericel Corporation (NASDAQ: VCEL)

Vericel Corp is based in Cambridge, Massachusetts. It is a commercial-stage bio-pharmaceuticals company focused on developing and commercializing therapies to treat damaged tissues and organs.

The company plans to participate in the Morgan Stanley 19th Annual Global Healthcare Conference on Sep 13, 2021. The company brought its IPO in 1997. It was founded in 1989.

Vericel Corp. has a market capitalization of US$2.5 billion, a P/E ratio of 301.78, and a forward P/E for one year of 800.86.

Its revenue was US$39.5 million for the June quarter of 2021 compared to US$20 million for the same period a year ago. The net losses for the June quarters of 2021 and 2020 were US$(3.79) million or US$(0.08) per share diluted and US$(8.27) million or US$(0.18) per share diluted, respectively. Its cash and cash equivalents as of June 30, 2021, were US$51.8 million. 

The stock closed at US$56.06 on Sep 7. VCEL stock rose by 76.46% YTD.

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Avid Bioservices, Inc. (NASDAQ: CDMO)

The company is focused on developing biopharmaceutical products from mammalian cell culture. It is based in Tustin, California. The company was founded in 1981 and its IPO came in 1993. The clinical-stage biopharmaceuticals company’s market capitalization is US$1.45 billion, with a P/E of 591.25 and a forward one-year P/E of 117.90.

The company declared its Q1 FY 2021 results on Sep 8. Its revenue was US$30.8 million compared to US$25.4 million in Q1 the previous year. The net income was US$6.3 million or US$0.10 per diluted share compared to US$4.7 million or US$0.06 per diluted share for the first quarter of the previous year. Its liquidity reserves were US$159.7 million as of July 31, 2021.

Its YTD return is 104.94%. The stock closed at US$23.58 on Sep 7.

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Myriad Genetics, Inc. (NASDAQ: MYGN)

The Salt Lake City, Utah-based Myriad Genetics is a molecular diagnostics company and provides testing services to assess the risk of diseases like cancer. The company has a market capitalization of US$2.75 billion. It was founded in 1991 and went public in 1995.

For the quarter ended June 30, 2021, the company generated revenue of US$189.4 million compared to US$93.2 million in the same quarter of 2020. The net loss to the company was US$(4.7) million or US$(0.06) per share diluted compared to the net loss of US$(55.5) million or US$(0.74) per share diluted in the year-ago quarter. Its liquidity reserves were US$118.4 million as of June 30, 2021. The stock closed at US$35.3 on Sep 7, 2021. Its YTD return is 78.05%.

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Bottomline

The Nasdaq Biotechnology Index gave a 12.99% return YTD. The healthcare companies have registered robust growth in recent quarters. Investors, however, must assess the stocks carefully before making an investment decision.

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