Market Panic Has Created 'Compelling' Opportunities In Biotech

According to ROTH Capital Partners analyst Debjit Chattopadhyay, the recent market pullback has created some excellent buying opportunities in the biotech space.

During the past five years, there have been seven times that the IBB index has fallen greater than 10 percent, but it has still consistently outperformed the NASDAQ overall during that time.

Here are six biotech stocks that Chattopadhyay believes traders should be buying on the dip.

1. bluebird bio Inc (NASDAQ: BLUE)

Chattopadhyay expects continued validation for bluebird at ASH. Based on the submission deadline of August 4, outcomes from up to 14 patients could be included in the abstracts to be released in early October.

2. Cempra Inc (NASDAQ: CEMP)

Chattopadhyay believes that solithromycin is superior to moxifloxacin and argued that effective pricing strategy could position solithromycin as the first-line therapy in CAP. Chattopadhyay is looking for positive Phase III data coming in Q4.

Related Link: 10 Biotech Stocks With Catalysts Coming Soon

3. MacroGenics Inc (NASDAQ: MGNX)

The stock is down 33 percent during the past two months, significantly discounting MGA271 in Chattopadhyay’s view. MGA271 testing has also recently been expanded into a range of tumor types and combinations studies with CTLA-4 and PD-1.

4. Sarepta Therapeutics Inc (NASDAQ: SRPT)

Chattopadhyay believes that the FDA may have tipped its hand when it comes to eteplirsen NDA acceptance with potential back-to-back panel meetings prior to Thanksgiving.

5. Uniqure NV (NASDAQ: QURE)

Chattopadhyay is expecting to see a clear relationship between dose and expression levels in the company’s gene therapy drug product, AAV5 vector carrying the hFIX transgene.

6. Nektar Therapeutics (NASDAQ: NKTR)

Chattopadhyay predicted that peak Movantik and BAX-855 royalty streams could push revenues above $350 million, but that near-term focus will be on the development of immune-oncology drug candidate NKTR-214.