Hot biotech stock leaders are surging within the IBD 50 elite list, with some passing buy points and others building bases. Among them, Catalyst Pharmaceuticals (CPRX), Harmony Biosciences (HRMY), Genmab (GMAB) and Neurocrine Biosciences (NBIX) all show bullish price patterns.
XCatalyst now holds the top spot in the IBD 50 and leads an industry group of more than 800 companies. It mounted a cup-with-handle base in heavy volume on Wednesday, passing a buy point at 16.76, according to MarketSmith.com. Shares dipped 0.5% Friday but are still within their buy range.
This biotech stock was Monday's IBD Stock Of The Day. It is also an IBD Tech Leader member and an IBD 50 Growth Stock to Watch.
Profits for the Miami-based biotech depend on firdapse, a treatment for Lambert-Eaton myasthenic syndrome, or LEMS. LEMS is a rare autoimmune condition that saps muscle strength, often occurring in lung cancer patients. This promising drug booked $57.2 million in sales in the third quarter, marking more than 59% growth.
Even though sales are growing, Catalyst is looking to acquire a second or third product — either through an outright buyout or licensing deal.
Bullishly, CPRX shares have a best-possible Composite Rating of 99, according to IBD Digital. This puts the biotech stock in the top 1% of all stocks in terms of fundamental and technical measures. Its 12-month performance is also in the top 1% of all stocks, as measured by the Relative Strength Rating.
Harmony Biotech Stock Breaks Past Buy Point
IBD 50 component Harmony Biosciences broke out of a cup-with-handle base on Nov. 1 after posting a 95 cents-per-share profit, easily beating 18-cent FactSet estimates. On Friday, the stock extended past a buy point of 52.62 and stretched above its 50-day line.
Harmony's claim to fame is pitolisant, which it views "as a portfolio in a product opportunity."
Pitolisant is approved right now as Wakix, a narcolepsy treatment, but Harmony is investigating its potency in idiopathic hypersomnia, another sleeping disorder. The drug may also be useful in the treatment of myotonic dystrophy, a muscle weakness disease.
It is also testing several treatments for Prader-Willi syndrome, which causes a number of behavioral and intellectual problems, and can also lead to short stature.
The biotech stock ranks eighth on the IBD 50 and third in the Medical-Biomed/Biotech industry group. The group has been especially strong this year, ranking No. 18 out of 197 industry groups.
Harmony shares also holds a perfect Composite Rating of 99 and a strong RS Rating of 97.
Genmab And Neurocrine Build Bases
Genmab is an IBD Tech Leader component, ranking No. 12 on the IBD 50 list. The biotech stock is forming a lengthy cup base with a buy point at 49.17.
The company develops antibody treatments for cancer and other diseases, partnering with biopharma giants, including AbbVie (ABBV), Johnson & Johnson (JNJ), Horizon Therapeutics (HZNP) and Seagen (SGEN). The Denmark-based biotech is now expanding its suite of medicines to new solid tumors and blood cancers.
In the September quarter, earnings and sales increased to 53 cents per share and $551 million, respectively. Both measures easily topped forecasts.
GMAB shares have a tiptop 99 Composite Rating and strong 96 Relative Strength Rating, nearly identical to Harmony and other biotech leaders. Its RS line is at a new high.
Last but not least, Neurocrine develops pharmaceuticals to treat neurological, endocrine and psychiatric disorders. It reported earnings on Nov. 1, narrowly missing earnings estimates while edging past sales estimates. The stock climbed 1.9% Friday.
Shares are consolidating near multiyear highs, extended from an October breakout. Despite a plunge to the 50-day line last week, Neurocrine stock is now back above its 50-day line and has a three-weeks-tight pattern that's on track to go for a fourth week.
Technically, it shows a 126.09 buy point but investors may wish to wait for less volatile price swings.
NBIX stock is ranked No. 7 in the group, with a 95 Composite Rating and a 95 RS Rating.
Follow Michael Molinski on Twitter @IMmolinski
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