ACADIA, Neurocrine, Alkermes Are Out Of Favor. Is It Time To Buy?
Our indicative theme of Out Of Favor Healthcare Stocks is down by about -10% year-to-date, versus the S&P 500 which is up by about 8% year-to-date. This theme includes healthcare and pharma companies that have shown strong historical revenue growth, improving fundamentals, and yet have not rallied much this year due to Covid-19, which has reduced doctor visits and delayed patients from seeking care. Considering the strong historical performance of these companies, and their focus on specialized therapeutic areas, they should offer solid returns in the medium to long-term as the pandemic wanes. While ACADIA Pharmaceuticals ACAD stock has remained almost flat year-to-date, Arrowhead Research and Ionis Pharmaceuticals, Inc. IONS have fared the worst and are down by about -22%. Below is a bit more on the companies in our Out Of Favor Healthcare Stocks theme and their relative performance.
ACADIA Pharmaceuticals is a biopharmaceutical company that develops drugs targeted at central nervous system disorders. The stock is almost flat year-to-date.
Neurocrine Biosciences NBIX is a biopharmaceutical company that develops treatments for neurological and endocrine-related diseases and disorders. The stock is down by about -5% year-to-date.
BioMarin Pharmaceutical is a biotech company focused on enzyme replacement therapies. The stock has declined -6% this year.
Alkermes is a biopharmaceutical company that focuses on drugs for diseases in the central nervous system including schizophrenia and multiple sclerosis. The stock is down by about -16% year-to-date.
Ionis Pharmaceuticals, Inc. is a biotech company that specializes in discovering and developing RNA-targeted therapeutics. The stock has dropped -22% this year.
Arrowhead Research is a biopharmaceutical company that focuses on treatments for Hepatitis B and cardiovascular disease. The stock is down by roughly -22% this year.
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