3.)
Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)
Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) is set to make a major splash in the weight loss industry, which until very recently, seemed to be a dying industry. Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)’s weight loss drug is Lorcaserin and it is well into Phase 3 clinical trials with promising results. Since this drug utilizes receptors in the brain to make a person feel full side effects are limited and unique in the industry. The patent would extend to 2023 which means no competition for at least a decade. With the market of people who need this is also ever growing. With 1/3 of Americans overweight the market base won’t disappear anytime soon. The drug is also unique in the sense since the drug deals with brain receptors and has limited side effects which their competitors can’t touch. With the market being $60 billion in size and growing yearly Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) will have excellent exposure to price themselves ahead of any competitors with the brain receptor edge.
4.)
Biosante Pharmaceuticals Inc (NASDAQ:BPAX)
Lastly, I’d look at Biosante Pharmaceuticals Inc (NASDAQ:BPAX) which focuses on the development of various products for female sexual health and oncology. It provides LibiGel, a transdermal testosterone gel that is in Phase III clinical development for the treatment of female sexual dysfunction; and male testosterone gel for the treatment of hypogonadism in men. LibiGel is unique as most bio firms target male sexual dysfunction and not female and seeks to reduce a women’s testosterone level safely. The sexual health industry for women makes up $2 billion worth of testosterone reduction product. The firm conducted an interview with doctors who prescribe testosterone reduction medication to pre-menopausal women and 96% said once LibiGel was approved they would switch their female patients to LibiGel. This would lead to an estimated $1 billion in revenue per year for Biosante Pharmaceuticals Inc (NASDAQ:BPAX) becoming the leader in the industry.
Moreover, a merger agreement with ANI Pharmaceuticals, announced last year will move Biosante Pharmaceuticals Inc (NASDAQ:BPAX) into a better position in the market overall with the portfolio of drugs both firms offer. Given the strong pipeline of both companies, the cash balances each have, and the speculation in small cap biotech stocks right now, there looks to be a lot of value here for investors.
Summary
When investing in bio stocks, investors should watch for companies researching ‘hot’ areas such as cancer, heart disease, neurological diseases, and other areas where there is a high degree of incidence in the population. Success (or sometimes even news of possible success) in these areas will ensure the company a faster return on their investment in R&D and licensing efforts.
The article 4 Bio Stocks to Buy Today originally appeared on Fool.com is written by Casey Walters.
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