CPRX - 3 Biotech Stocks You Can Buy and Hold for the Next Decade
2024-01-15 08:45:00 ET
Biotech stocks tend to be a lot riskier than your average investment. But if you buy a basket of biotechs today and hold onto them for long enough, the balance of risk and reward should be tilted in your favor. Let's examine three companies suitable for such a strategy, starting with the least risky of the bunch.
In a nutshell, Catalyst Pharmaceuticals ' (NASDAQ: CPRX) approach is to buy the rights to sell therapies for rare diseases, either by purchasing late-stage programs and finishing development or by buying commercialization licenses outright. And with $121 million in fully liquid assets as of the third quarter of 2023, plus a stock offering of $150 million in early January and negligible debt, it has plenty of dry powder on hand to carry out its goals.
Over the last five years, the biotech's trailing-12-month normalized earnings per share (EPS) rose by 550% to reach $0.52. In the near term, expect Catalyst's revenue and earnings to continue ramping up rapidly.
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3 Biotech Stocks You Can Buy and Hold for the Next Decade