Is Athenex Inc (ATNXQ) Stock a Good Investment?

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Learn more about whether Athenex Inc is a good stock to buy or sell based on recent news as well as its key financial metrics. Read on to find out how (ATNXQ) grades on certain investment factors and determine whether it meets your investment needs.

Latest Athenex Inc Stock News

As of May 25, 2023, Athenex Inc had a $1.8 million market capitalization, putting it in the 4th percentile of companies in the Biotechnology & Medical Research industry.

Athenex Inc does not have a meaningful P/E due to negative earnings over the last 12 trailing months. Athenex Inc’s trailing 12-month revenue is $102.8 million with a -100.6% profit margin. Year-over-year quarterly sales growth most recently was 109.8%. There are not analysts providing consensus earnings estimates for the current fiscal year. Athenex Inc does not currently pay a dividend.

The Biotechnology and Medical Research sub-industry has a positive outlook, a historically defensive sub-industry. Drug sales are anticipated to have high growth, primarily driven by COVID-19 therapeutics, the continued adoption of many new and innovative therapies, a favorable M&A environment, and a low prevalence of patent expirations in 2022. Additionally, companies could see prescription growth pick up as in-person physician visits return to pre-pandemic levels. As COVID-19 variants have emerged, vaccine boosters have been offered in order to increase efficacy. Due to this, repeat vaccinations will likely be necessary for lifelong immunity which would provide a long-lasting and significant source of revenue for lead vaccine developers. Aside from vaccines, the biotech industry is dependent on the volume of new therapy approvals. The FDA’s heavy focus on COVID-19 could slow the approvals on non-COVID-19 therapies. Despite this, the biotech industry will likely see promising sales growth over the next five years as it usually takes at least five years for new drugs to reach peak sales levels. Approval activity has also been on the rise recently. Mergers and acquisitions activity is expected to remain low as a more activist Federal Trade Commission (led by Lina Khan) could be more skeptical of proposed mergers. Year to date through June 30, the S&P 1500 Biotech Index was down 1.6%, vs. a 20.5% decline for the S&P 1500 Composite Index. In 2021, the Biotech Index rose 8.2%, vs. a 26.7% gain for the Composite Index.

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