This biotech is somewhat speculative, but analysts expect it to grow by 22% annually for the next five years.
BioSpecifics Technologies Corp. (BSTC)
From Upside
BioSpecifics Technologies Corp. (BSTC) delivered a 40% return in 2018, fueled by robust operating momentum and a bright growth outlook. The company developed injectable collagenase, which is marketed as XIAFLEX and used for a handful of conditions, including Dupuytren’s contracture.
BioSpecifics comes with risks, as all sales- and profits come from collagenase therapies. Moreover, the company relies on Endo International (ENDP), its key marketing partner, for royalty and milestone payments.
Finally, the stock is not cheap at 28 times trailing earnings. Still, there’s plenty to like about BioSpecifics, which boasts an expanding product pipeline, accelerating cash flow, and solid earnings momentum. The stock earns an Overall score of 93, versus an average of 18 for the 238 biotech stocks in in Quadrix®.
In 2019, per-share earnings are expected to advance 11% on sales growth of 14%. The stock is being initiated as a Buy.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, January 2019