For President Donald Trump’s 100-day anniversary, it looks like Congressional Republicans are trying to give him a present they couldn’t muster earlier in his term — healthcare reform of the Affordable Care Act (aka, Obamacare).
Apparently there’s a deal that is being worked out between the conservative and moderate wings of the House Republicans that could revive the repeal and replacement of Obamacare as Speaker Paul Ryan and President Trump had promised earlier.
This is a very risky move, since if it fails to happen it will look even worse than it did the first time they came up short. It’s a gamble with a lot of political capital on the line.
But what’s not at risk are the fates of the stocks below. These are seven healthcare stocks with A-rated prospects regardless of what the politicians in DC can or can’t do.
Either way these stocks will continue their growth and strength.
BioTelemetry, Inc. (NASDAQ:BEAT) specializes in remote patient monitoring. Basically, that means if you’ve suffered a heart attack or stroke and you’re released from the hospital, you can wear a device that monitors your vital signs and reports them in real time to your doctor or hospital. All that data is stored and evaluated to see how well your recovery is progressing.
BEAT is a major player in this fast-growing field. Part of what makes this remote monitoring, so interesting now is the cost savings it can provide. Doctors don’t have to see patients that they can see are doing well, which gives them more time with patients who need their help more directly. This means less doctor’s visits and more productivity for doctors.
BEAT just bought the Swiss firm LifeMonitor AG, which is in more than 60% of U.S. cardiac care units and just signed a letter of intent with General Electric Company (NYSE:GE) to develop a strategic partnership.
That’s a lot of good stuff.
CRH Medical Corp (NASDAQ:CRHM) is a Canada-based firm that takes the term “CYA” to the next level. It specializes in services and products focused on gastrointestinal (GI) diseases and conditions. Specifically, it is a leader in managing and treating hemorrhoids.
But it’s also making its mark in the U.S. through its anesthesiologist services to GI outpatient services like colonoscopies. With baby boomers beginning the winter of their years at a rate of 10 million a year for the next two decades, colonoscopies are one of the most effective diagnostic treatments for GI conditions. This is a market with built in growth.
And there’s no real concern with any healthcare reform since outpatient diagnostic treatments are usually more highly valued than high-cost treatments for diseases and conditions that could have been caught and treated earlier.
It hasn’t attracted mass market attention, but it is certainly on a very strong growth path.
Eagle Pharmaceuticals Inc (NASDAQ:EGRX) is a relatively small biotech that specializes in oncology, critical care and orphan diseases. These sectors are excellent markets for smaller biotechs because they have less competition than other diseases, which makes the approval process slightly less arduous and the revenue more realistic.
When you have the only drug treating a specific type of cancer, you can make up for the development costs much easier than if there are other drugs treating the same disease.
Also, because of its size and tight focus, EGRX is also an attractive buyout target for a bigger pharma looking to bolt on a successful company that’s already selling products in specific markets. And those purchases usually come with significant premiums.
While EGRX stock has a market capitalization of around $1.4 billion, it values its market around $3.4 billion, so there’s plenty of room for growth even if it remains on its own. Its injectable drug line Bendeka, used for treating chronic lymphocytic leukemia (LCC) and non-Hodgkin’s lymphoma (NHL), was just awarded three more patents for the drug. That’s a total of 14 patents that won’t expire until 2026-2033.
Corcept Therapeutics Incorporated (NYSE:CORT) is an interesting biotech because while it addresses certain conditions, its main focus is on regulating the effects of the hormone cortisol.
Cortisol at its most basic level is the body’s stress hormone. When we’re under stress, our adrenal glands produce cortisol, which then increases our blood sugar levels so our brain is alert and increases our blood pressure to move more oxygen to our muscles. It also accesses energy from our fat cells for energy that increases cholesterol levels. These connections between cortisol and diseases like high blood pressure and diabetes are the tip of the iceberg.
Overproduction of cortisol also affects our immune systems. And certain diseases have been linked to cortisol over- and under-production. In 2012, CORT won approval for its drug Korlym to treat Cushing’s syndrome, a disease that is caused by the overproduction of cortisol over a long period of time.
Considering cortisol’s link with some of the most widely diagnosed conditions in the U.S., it’s no wonder CORT has been knocking revenue and earnings out of the park quarter after quarter.
Eleven Biotherapeutics Inc (NASDAQ:EBIO) is a small-cap stock with a very novel approach to defeating cancers. At a mere $45 million market cap, and with one drug in Phase 3 trials and its other candidate in Phase 2 trials, it’s not for the weak of heart.
But the fact that it’s gotten these drugs to this stage are the promise of the investment here. Because if it’s Targeted Protein Therapeutics, it delivers a cytotoxic protein to the cancer, essentially killing the cancer.
Vincinium is its latest stage drug that is focusing on high-grade non-muscle invasive bladder cancer. Proxinium is its second drug that is treating late stage squamous cell carcinoma of the head and neck.
It’s also building these drugs to be used in immuno-oncology therapies, which is the most cutting-edge research being done in this field. If these drugs work, EBIO will have plenty of suitors looking to at least partner with them, if not buy them out at a handsome premium.
Idexx Laboratories Inc (NASDAQ:IDXX) is in the pet and domestic animal healthcare business. And believe it or not, this is one of the fastest growing healthcare sectors out there.
According to the American Pet Products Association, the household pet sector is a $63 billion market these days, up almost 200% in the past 20 years. You can even buy healthcare insurance for your pets now. And that’s a good thing because treatments are just as complex and costly for your feline friend as they are for humans.
Open-heart surgery, chemotherapy and radiation as well as orthopedic procedures are commonplace now. Also, veterinarians are also able to offer diagnostics for everything from Lyme disease to heartworm. And that means more revenue for the vet since these labs can be processed in-house thanks to IDXX equipment.
IDXX also has a strong global reach which will add even more firepower to its bottom line as Europe’s economy gets back to business.
Veeva Systems Inc (NYSE:VEEV) has its foot in two significant growth sectors — healthcare and cloud storage.
VEEV was started by a former exec at the customer relationship management juggernaut salesforce.com, inc. (NYSE:CRM) who realized that because of the specific needs and regulations involved in the healthcare industry, CRM was never going to be able to meet the needs of the healthcare sector well.
So he left and started VEEV.
The allure of VEEV for drug companies’ sales forces and other healthcare companies is VEEV is built for them, understanding its needs and quirks. And the great thing for VEEV is, once the companies have signed on, it’s difficult and expensive to switch to another firm’s software.
This is the kind of moat you want to build in the software as a service sector and VEEV has achieved it. And as the U.S. population begins to age, this market has the kind of organic growth that will allow VEEV to expand its position and influence.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.