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Three Stocks for the Battle Ahead (LLY, RXMD, LH)

Eventually, there will be a vaccine. 

But, according to the WHO leadership even yesterday, confidence is waning in a “silver bullet” pharma solution for COVID-19. We may be in “coping” mode for quite some time yet. 

For investors, that means an increased focus on testing, PPE, and remote process management. 

With that in mind, we suggest a few high-growth plays that fit this idea-map and may help investors cope with the very unique market environment to come: Eli Lilly And Co (NYSE:LLY), Progressive Care Inc (OTCMKTS:RXMD), and Laboratory Corp. of America Holdings (NYSE:LH).

Eli Lilly And Co (NYSE:LLY), a leading pharmaceutical name, just announced the initiation of BLAZE-2, a Phase 3 trial studying LY-CoV555 for the prevention of SARS-CoV-2 infection and COVID-19 in residents and staff at long-term care facilities in the U.S. (skilled nursing facilities, commonly referred to as nursing homes, and assisted living facilities). LY-CoV555, the lead antibody from Lilly’s collaboration with AbCellera, is a neutralizing antibody against SARS-CoV-2, the virus that causes COVID-19.

The rapid spread of SARS-CoV-2 among residents of long-term care facilities combined with the higher mortality rate for the elderly creates the urgent need for therapies to prevent COVID-19 in this vulnerable population.

Eli Lilly And Co (NYSE:LLY) bills itself as a company that discovers, develops, manufactures, and markets pharmaceutical products worldwide. The company operates through two segments, Human Pharmaceutical Products and Animal Health Products. It offers endocrinology products for the treatment of diabetes; osteoporosis in postmenopausal women and men; and human growth hormone deficiency and pediatric growth conditions.

The company also provides neuroscience products for the treatment of depressive disorder, diabetic peripheral neuropathic pain, anxiety disorder, fibromyalgia, and chronic musculoskeletal pain; schizophrenia; attention-deficit hyperactivity disorder; obsessive-compulsive disorder, bulimia nervosa, and panic disorder; and positron emission tomography imaging of beta-amyloid neurotic plaques in adult brains, as well as immunology products to treat Alzheimer’s disease.

While the company’s recent announcement is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action LLY shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -5% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities.

Eli Lilly And Co (NYSE:LLY) managed to rope in revenues totaling $5.5B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -2.4%, as compared to year-ago data in comparable terms.

Progressive Care Inc (OTCMKTS:RXMD) promulgates itself as “a personalized healthcare services and technology company”. Do a little digging and you find this is a company that has been showing strong top and bottom-line growth in the regional pharmacy services space, but is now increasingly set to expand operations into telemedicine, ecommerce, and a range of scalable growth strategies while maintaining its footprint in the Florida pharmacy services space.

The company has put up impressive numbers, with consolidated monthly gross sales across all locations during May totaling $3 million, representing year-over-year growth of 67%. It was 54% the month before, and 105% in March. And it was even better before the pandemic hit.

Progressive Care Inc (OTCMKTS:RXMD) just announced the expansion of the Company’s PharmCo branded pharmacy operations and presence in the Orlando metropolitan area. 

According to the release, the Company is moving out of its current Orlando pharmacy location, which is a 700 square-foot mini-pharmacy operating under the “Five Star” brand designation, to a 3,700 square-foot full-size pharmacy that will open under the PharmCo brand designation. The Company is also very pleased to report that this move, which represents an expansion in property size of more than 400%, will not increase monthly lease costs.

Once completed, the move will allow for a dramatic expansion in the services and products offered in the Orlando market, including the full scope of PharmCo pharmacy goods and services, as well as therapy management, patient management, cost management services, and rapid-results testing services (COVID-19 IgG/IgM) as authorized by the FDA under its Emergency Use Authorization (“EUA”) guidelines for conducting SARS-CoV-2 antibody presence and COVID-19 infection diagnosis testing.

If you’re long this stock, then you’re liking how the stock has responded to this and other recent announcements. RXMD shares have been moving higher over the past month overall, rallying roughly 68% in that time on strong overall action. 

Progressive Care Inc (OTCMKTS:RXMD) generated sales of $9.1M, according to information released in the company’s most recent quarterly financial report. That adds up to a monthly year-over-year growth rate of 62% on the top line as of the Company’s last monthly performance update.

Laboratory Corp. of America Holdings (NYSE:LH) operates as an independent clinical laboratory company worldwide. It operates in two segments, LabCorp Diagnostics (LCD) and Covance Drug Development. 

It offers various clinical laboratory tests, such as blood chemistry analyses, urinalyses, blood cell counts, thyroid tests, Pap tests, hemoglobin A1C and vitamin D products, prostate-specific antigens, tests for sexually-transmitted diseases, hepatitis C tests, microbiology cultures and procedures, and alcohol and other substance-abuse tests. 

Laboratory Corp. of America Holdings (NYSE:LH) just announced plans to create a program to offer total antibody testing at no charge through the patient’s doctor in support of increased blood plasma donations for use as a possible COVID-19 treatment.

According to the release, LabCorp is proud to be part of The Fight Is In Us coalition to increase donations of blood plasma with COVID-19 antibodies. Blood plasma is being evaluated as a possible treatment for patients with an active COVID-19 infection. Public health authorities have asked for help with expanding the population of potential plasma donors, and LabCorp is seeking to meet that challenge by creating a program to offer total antibody testing at no charge through the patient’s doctor. Patients who are interested in donating blood plasma can speak with their doctor about the total antibody testing program during their next routine visit or treatment. LabCorp is currently working with public health authorities and the provider community on the details of the three-month program and will provide additional information in the near future.

Even in light of this news, LH has had a rough past week of trading action, with shares sinking something like -3% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way. Shares of the stock have powered higher over the past month, rallying roughly 14% in that time on strong overall action. 

Laboratory Corp. of America Holdings (NYSE:LH) pulled in sales of $2.8B in its last reported quarterly financials, representing top line growth of -3.9%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($557M against $3B, respectively).

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