Is Radius Health Stock a Good Buy Now?
The American biopharmaceutical company Radius Health is based out of Waltham (MA). Radius is committed to developing innovative therapeutics for osteoporosis and breast cancer. With a YTD performance of -31.6%, Radius’ stock was a big disappointment for investors so far in 2020. There are several reasons why this might change soon.
Radius’ lead product is TYMLOS (Abaloparatide), an injectable drug which was approved by the FDA for the treatment of postmenopausal women with osteoporosis at high risk for fracture. TYMLOS market share continues to increase. In the first quarter of this year, Radius has achieved $48 million net sales for TYMLOS with a 61% growth as compared to last year.
However, as a result of the pandemic, the company had to slightly revise down its 2020 TYMLOS revenue guidance which is one of the main reasons for the poor performance its stock in 2020.
In addition, Radius aims at expanding TYMLOS’ label to men with osteoporosis and works on an investigational patch of the drug for potential use in osteoporosis. On a medium-to-long-term basis, Biotech Investments remains confident in its positive outlook and expects strong growth of TYMLOS once the restrictions ease.
Finally, Radius’ clinical pipeline also includes two drug candidates for the treatment of breast cancer, one in a phase 3 clinical trial and the other one in a phase 1 study.
With a market cap of around $580 million, Radius Health might also be one of the top takeover and acquisition targets in biotech industry for 2020 and 2021. HOT STOCK!