ROIV - 3 Healthcare Stocks With the Potential to Triple Your Investment by 2026

2024-05-01 10:47:16 ET

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Finding firms with strong growth potential is essential for healthcare investors looking for large profits. Three exceptional firms have surfaced as strong healthcare stocks . Each exhibits unique approaches and accomplishments in biotechnology, healthcare services, and pharmaceuticals. Solid product leads, especially in the U.S. market, have propelled the first company’s biosimilar industry to an astounding rise. This company’s dedication to prudent money management and wise investments puts it in a position for long-term success.

Additionally, the second company discussed has exhibited robust operational performance. This is seen in its endeavors to reduce costs and boost income, especially in its integrated kidney care (IKC) programs. Regarding biotechnology, the third company is noteworthy due to its wide range of promising assets across several therapeutic domains. To quickly bring novel treatments to market, the business intends to move several products into regulatory trials.

Read more to discover the primary drivers of these healthcare stocks.

Organon (OGN)

In 2023, the biosimilars business had a solid 24% rise , serving as a crucial growth pillar for Organon (NYSE: OGN ). The company currently possesses sustained leads for products like Renflexis and Hadlima. These products have experienced high demand, especially in the US, their primary expansion driver.

Renflexis, in particular, showed impressive stability with revenue increases for the sixth year running. Hadlima led all biosimilars in total prescriptions for eight weeks running. This demonstrates the need for reduced net cost choices and patient formulary access. Looking forward, this lead may continue in 2024 with further modifications to formulary access and increased market uptake.

Furthermore, Organon focuses on carrying out company growth initiatives via its strategic goals. For example, the business’s recent license agreements, such as the one for migraine medications with Eli Lilly (NYSE: LLY ), demonstrate its emphasis on utilizing its commercial infrastructure and seeking success-based milestone agreements to reduce upfront financial costs.

DaVita (DVA)

DaVita’s (NYSE: DVA ) impressive operational performance reflects its capacity to execute cost-cutting plans and boost revenue efficiently. For 2023, there will be a $3.50 rise in income per treatment alongside the implementation of cost-cutting measures for pharmaceutical spending, and consolidation of production facilities.

Moreover, DaVita’s capacity to generate more income per patient presents in its revenue per treatment boost. As such, better cash flow management has resulted from increased efficiency in payment collection. Thus, the demand and lead of IKC’s delivery model exemplify the company’s notable rise in patient enrollment and overall medical expenses.

Additionally, patients enrolled in DaVita’s IKC programs incurred $4.6 billion in medical costs, an increase of around 30% over the previous year. Similarly, 58,000 patients have been enrolled in IKC programs, a 38% increase from 2022. Overall, the noteworthy increase in overall medical expenditure suggests that DaVita’s IKC programs are reaching a broader patient base and offering more comprehensive care services.

Roivant (ROIV)

Roivant’s (NASDAQ: ROIV ) pipeline includes intriguing assets across several therapeutic domains. Anti-FcRn antibodies (bateclimab and IMVT-1402), VTAMA, brepocitinib, namilumab, and other drugs are important possibilities for the pipeline. The business intends to move many projects into regulatory studies, and possible approvals are soon anticipated.

By March 31, 2026, Roivant plans to start trials in 10 different technologies, demonstrating a solid pipeline expansion strategy. The company’s emphasis on moving many initiatives closer to registration demonstrates its dedication to successfully introducing novel treatments to the market. Furthermore, Roivant’s varied pipeline, which includes early—and late-stage assets, lessens dependence on singular revenue streams.

Moreover, product sales and prospective milestone payments are the main drivers of Roivant’s consistent revenue growth. With over 300,000 prescriptions filled, VTAMA’s net product revenue for Q4 2023 was $20.7 million. Also, for the three months ended Dec. 31, 2023, the company’s net income was $5.1 billion, a considerable increase over Q4 2022.

In summary, Roivant’s steady revenue growth indicates its commercial success and consumer acceptability among healthcare stocks, especially for flagships like VTAMA .

On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
• Legendary Investor Predicts: “Forget A.I. THIS Technology Is the Future”

The post 3 Healthcare Stocks With the Potential to Triple Your Investment by 2026 appeared first on InvestorPlace .