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3 Biotech Stocks to Watch: QBioMed Inc, Seattle Genetics and Jazz Pharmaceuticals

2018 turned out to be superb for the pharma and biotech sector with the FDA approval of 59 drugs compared to only 46 drugs approved in 2017.

Some investors like the idea of stepping in small-cap biotech stocks that are in the development or preclinical stage, hoping to ride the next multi-baggers if those companies announce encouraging test results or advancement in their pre-clinical developments. Investors might want to consider taking advantage of biotech stocks that have seen their share prices punished in 2018.

Q BioMed Inc. (OTCQB:QBIO) is a small cap biotech company with a vast pipeline of treatments. In the more recent news, the company has focused its attention on the company’s Formulation and Preclinical Development of QBM-001 for Pediatric Nonverbal Disorder in Autistic Children.

The company announced last November the acquisition of Cancer Pain Drug Metastron™ from GE Healthcare. The acquisition gives Q BioMed ownership of the brand, trademarks and market authorizations in 22 countries.

Trading around $2.20, Q BioMed’s share price is up about 100% since the start of 2019 and the stock continues to trade well above its 50-day moving averages. Q BioMed is another biotech stock that has been bullish at the end of 2018, and there’s absolutely no reason to believe that the company will give up this momentum this year.

Seattle Genetics (NASDAQ:SGEN) is another biotech stock to add on top of your watchlist. The company has one drug available for patients, Adcetris, which is used to treat Stage III/IV classical Hodgkin lymphoma. In the last quarter, sales of Adcetris jumped by  60% YOY (Year-over-Year). The company continues to get more approvals and breakthrough designations for the drug. All of this has only made the medicine more lucrative for the company.

Given strong growing sales of Adcetris and its huge cancer-focused pipeline, any drug maker looking to step in oncology would seriously be considering Seattle Genetics stock. This company could be one of the next biotech stocks to be bought out.

Jazz Pharmaceuticals (NASDAQ:JAZZ) has already five drugs out there, with one of them, narcolepsy drug Xyrem being a blockbuster based on projections. Sales of Xyrem are expected to surpass $1.4 billion in 2019. Acute myeloid leukemia treatment Vyxeos, which was launched last year, is set to reach $100 million in sales for the full year 2018 and expected to pull more than $200 million this year.

JAZZ’s has a pending FDA approval for its new drug covering excessive daytime sleepiness associated with narcolepsy or obstructive sleep apnea. Another late-stage candidate for cataplexy in narcolepsy could get approved at the end of 2019.

With a rich drug portfolio and pipeline, JAZZ has authorized a $400 million buyback program. This authorization came right after it already repurchased more than $600 million in shares. Analysts estimate that a dividend could be right around the corner.

Disclaimer: Please note that Cream Consulting LLC has been compensated 15K$ for 1 month advertising services on QBIO by a non affiliated 3rd party.





Published by Alan Masterson

Alan has over 25 years of trading experience in the U.S. equity markets. He began his career in finance working on a program trading desk specializing in over-the-counter stocks. His career progressed from that point to his current position as senior trader on an institutional trading desk. In the evenings, Alan teaches economics at a local community college. He has contributed articles to various publications over the last six years, including feature articles for an economics magazine and various financial blogs. You may contact Alan via his email ([email protected]) or his Google+ page (

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