Agios Pharmaceuticals: Buy! One of the Top Biotech Stocks!

Since the beginning of April 2019, the stock of Agios Pharmaceuticals has known only one direction: downwards. During this period, the share price has more than halved from over $68 to less than $33 by the end of this week. Nevertheless, Biotech Investments remains bullish for its Model Portfolio member. But what the reasons for this? And does the current share price provide potential buyers with an interesting opportunity for an investment?

With a year-to-date performance of -30.5%, the development of Agios Pharmaceuticals’ share price was very disappointing so far. Compared with its highest level of $68.10 marked on April 5th, this even corresponds to a minus of 51.8%.

After the approval of Agios’ isocitrate dehydrogenase-1 (IDH-1) inhibitor Tibsovo (Ivodisenib) for the treatment of acute myeloid leukaemia last year, it got pretty quiet around the company. As a result of this, the stock has swung to a long-lasting downward trend. However, we think this might be changing soon, mainly because of the following tree reasons:

  • At ESMO, the company presented highly promising phase 3 trial results for Tibsovo in the new indication cholangiocarcinoma (bile duct cancer): The therapy showed a significant improvement in progression-free survival in patients already pre-treated for the disease. Agios will submit an application for approval in this indication by the end of 2019.
  • We are convinced that the potential of Tibsovo is far from being exhausted. Agios plans to expand the therapeutic applications of Tibsovo to solid tumors by the end of 2020. If these plans are successful, we would expect a significant increase in sales with Tibsovo in the coming few years.
  • The combination of the robust data presented at ECTRIMS, a promising pipeline and a fair market cap of around $9 billon, the company is likely to come increasingly into the focus of large pharmaceutical companies. We therefore think, that Agios wil be one of the main takeover targets in pharmaceutical industry of the coming 1 to 2 years.

These are the tree key factors why Biotech Investments remains committed to its long-term Model Portfolio member Agios Pharmaceuticals. Even more, we think that the current stock price of Agios represents an ideal opportunity to buy shares of this biotech pearl.




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October 26, 2019 Agios Pharmaceuticals, Portfolio, Stock Recommendations

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