The health care sector has been a consistent source of good returns for investors the past couple of years and is expected to deliver more good news for its investors in the years to come.
There are several visionary biotech companies that are primed for extraordinary gains this year because of their innovative and ground-breaking medical devices, drugs or technology. These biotech companies are set to deliver strong performances this year and promise huge earnings for their investors.
Here are four biotech stocks that you should keep an eye on in 2017.
Cara Therapeutics
Cara Therapeutics Inc. (CARA, Financial) has a $425.39 million market capitalization that is focused on exploiting opportunities in new chemical entities and generating huge profits from its commercialization. Cara’s bread and butter are kappa opioid receptors and pain management medication. With the painkiller market reaching $11 billion dollars in the U.S. alone in 2014, Cara’s upcoming breakthrough in pain management medication is seen to further boost income.
Prescription drugs for pain management have created medical health issues because of opioid misuse and dependence. The National Institute on Drug Abuse has estimated some 2.4 million Americans addicted to drugs particularly from opioid pain reliever abuse. At least 61% of the more than 47,000 Americans who died from drug overdose in 2015 were opioid-related. Some 47,000 Americans are believed to be addicted to heroin.
Cara is currently developing a new opioid abuse-deterrent called CR845 that is designed to relieve patients of pain without targeting the central nervous system. CR845 is being developed as a painkiller minus the addictive narcotics. Once developed, the new drug aims to provide relief to the estimated 3 million Americans suffering from excessive itching as a result of kidney disease.
Cara already saw its share prices jump 200% in value in the past year.
Nektar Therapeutics
Nektar Therapeutics (NKTR, Financial) with $1.7 billion in market capitalization as of March 2014 and an enterprise value of $1.67 billion, saw its share price jump 18% toward a six-month high in premarket trade on March 20 after a late-stage trial of its opioid analgesic showed positive results.
The company said that the phase 3 trial of NKTR-181 has shown tremendous promise for providing potent pain relief without the high levels of euphoria that can lead to abuse and addiction with standard opioids.
"The data from this efficacy study are extremely important because they demonstrate that NKTR-181 produces strong analgesia in patients suffering from chronic pain while NKTR-181 has also demonstrated significantly lower abuse potential than oxycodone in a human abuse potential study," said clinical investigator Martin Hale, M.D., medical director of Gold Coast Research. "While standard opioid analgesics, including abuse-deterrent formulations, have been the most effective way to treat chronic pain, they are associated with serious safety concerns and many opioid-naĂŻve patients fear taking them because of the potential for abuse and addiction. The data for NKTR-181 suggest that it is a transformational pain medicine that could fundamentally change how we treat patients with chronic pain conditions."
Nektar is currently developing a propriety pipeline of drug candidates for several therapeutic areas including oncology, pain, anti-infectives, anti-viral, and immunology.
BioCorRx
BioCorRx (BICX) is an upcoming player in the anti-opioid drug space. The company is in the preclinical stage of development of BICX101, an injectable naltrexone which company President, CEO and Director Brady Granier hopes will “become the gold standard of long-term addiction treatment and relapse prevention, especially once more efficient detox protocols and products are standardized such as the IHS BRIDGE device.”
Naltrexone is a pure opioid antagonist that was approved by the Food and Drug Administration for opioid addiction in 1984. The drug has been found to be effective in reversing and reducing, as well as blocking, the effects of opioids.
This month, BioCorRx completed an equity financing deal with private equity fund Alpine Creek Capital Partners that will assist in the development of BICX101 and promotion of the company’s BioCorRx Recovery Program. The company announced in February a partnership with Innovative Science Solutions to assist with regulatory matters for BIXC101 and one or more other naltrexone formularies. The agreement should help the company in its hopes for FDA approval of BICX101.
Anaheim, California, recently announced a collaboration with BioCorRx to help treat its residents with opioid and alcohol addiction using its BioCorRx Recovery Program. The program uses a naltrexone implant in conjunction with counseling and 12 months of peer support. BioCorRx developed the program which is used by independent doctors across the country.
Granier commented, “We are very excited about the prospect of BICX101. As mentioned recently, we are hoping to present data to the FDA in a Pre-IND meeting sometime in the near future. The results thus far in vivo are consistent with our goals of achieving one month of drug release in a smaller volume and needle than another product on the market. Our injectable also has the potential to be administered at home. We look forward to more studies and discussions with the FDA this year. Meanwhile, our BioCorRx Recovery Program is gaining traction, and we are excited about our partnership with the city of Anaheim.”
Pacira Pharmaceuticals
Pacira Pharmaceuticals (PCRX, Financial) is offering its Exparel in the fight against opioid abuse and misuse. Used as a local analgesic, Exparel is the preferred drug during surgery to manage pain and reduce a patient’s dependence on opioids while recovering.
Pacira reported an 11% year-on-year growth for Exparel and earned $250 million from the drug in 2016. The company is projecting strong sales this year for the drug with the signing of a deal with Johnson & Johnson (JNJ, Financial) through which Exparel will be offered by more doctors.
With $1.8 billion market capitalization, Pacira has been showing astronomical growth numbers over the past months.
DISCLOSURE: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I am receiving compensation from BioCorRx for the article.
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