Boston, MA 04/08/2013 (wallstreetpr) – The stock market is booming and the investing scene looks a little brighter today and investors can take their pick. Most pharmaceutical companies and healthcare stocks have appreciated. The reason for the boost has been operational measures taken within the company and the improved market conditions. Let’s take a look at how various stocks are performing.
Shares of Gilead Sciences, Inc (NASDAQ:GILD) (current: $47.37 Down by 0.78%), the California-based pharmaceutical company have been on the rise and rose over 14% in the prior month. Applying traditional evaluation measures to a bio-pharma company such as Gilead Sciences is a very difficult task. The stock had doubled last year and had clearly been overbought. The price to earnings ratio that it trades at is almost 36 which is not a very conducive one. On the contrary these same parameters can be used in the justification of its high valuations. Many interesting updates about its drug development plan have been coming out lately.
Gliead- in the lead
Gilead Sciences has been fairly successful in the developing GS-7977(sofosbuir) which is used in the treatment of various Hepatitis C symptoms. Several clinical trials are being held named Fusion, Fission, Positron and Neutrino, all of which currently are in late-stage development of oral therapy for sofosbuvir. The company had also very recently received positive reviews for its phase three trials of Genotype 1 hepatitis C, from the independent Data and Safety Monitoring Board. Just previous to that the comoany had announced positive results from the phase 4 type 2 diabetes tests of Ranolazine. The drug had been tested on patients suffering from Chronic Stable Angina.
Cadence- getting more credence
The drug development and biotechnology company Cadence Pharmaceuticals, Inc (NASDAQ:CADX) (Current: $6.79, Down by 0.44%) had not performed very well last year and had ended up losing half its value since 2009. However, the company seems to have caught the attention of investors again, has had a good growth in trading volumes and gained 36percent over the last month. The jump was higher in the last half of March. This was right after the company announced that its injecton, Ofirmev is now available on the Veterans Affairs National Formulary. This change alone is capable of upping the company’s revenue to the $94 million-$100 million range in the current year.This will be an increase from the$50.1 million that it stood at in 2012.
This is quite a good performance for a company whose market capitalization is $572 million. JMP securities has very recently been covering the company and has given Cadence an “outperform “rating.
Insurance in the picture as well…
Another noticeable player in the healthcare industry, United Health Group Inc (NYSE:UNH) (Current: $62.10, Up by 0.11%),has gone the outperform way. Its primary business is health insurance the Amil the Brazilian health insurer had recently acquired the company. United Heath had been looking for a clear path into Brazil’s private health insurer market. This is the biggest market in Latin America and covers over 200 million people. This acquisition has hade Healthcare the first prominent insurance group to make an appearance in the Brazilian market. It gained over 7% in the last month alone. The shares are being traded ate %57 and the stock value is at least 11 times that of its earning in 12 months.
The healthcare stock market evaluation is not an easy job but investors have an experienced and keen eye and know when a particular stock is lagging behind. For now, Gilead, and United Health seem to be off on a good trot.
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