Healthcare Stocks That Hit New Highs (KMDA, MGLN)

(RTTNews) - Healthcare Stocks That Hit New Highs (KMDA, MGLN)

The following are the healthcare stocks that hit a new 52-week high on Thursday.

Kamada Ltd. (KMDA) recorded a new high of $7.32 in intraday trading on Thursday, before closing at $6.83. The stock has gained nearly 40% year-to-date.

Kamada is a revenue-generating company focusing on plasma-derived protein therapeutics for orphan indications. The company's strong pipeline has many late-stage programs.

Lead drug candidate is Inhaled Alpha-1-Antitrypsin (Inhaled AAT) proposed for the treatment of Alpha-1 Antitrypsin Deficiency (AATD).

Phase II study of Inhaled AAT in AATD in the U.S had met its primary endpoint in 2016. However, in the same year, when data from phase II/III study done in Europe were published, the FDA expressed its concerns about the data. In 2017, Kamada submitted a complete proposal for phase III study protocol, as requested by the FDA. Also, the company withdrew its marketing authorization application (MAA) in the EU in 2017.

In April last year, again the FDA requested more guidance on the proposed phase 3 protocol for Inhaled AAT. April this year Kamada received an acceptance letter from the FDA to continue with phase III trials following the company's proper address of FDA's concerns and questions regarding the Inhaled AAT program. Following this, Kamada intends to start a unified global pivotal Phase III trial in the second half of 2019.

Kamada reported strong third-quarter results on November 13.

Net income was $5.8 million or $0.14 per share, in the third quarter compared to net loss of $2.4 million, or $0.06 per share, in the third quarter of last year. Analysts were expecting earnings of only $0.07 per share.

Revenues were $33.1 million in the third quarter, an increase from $15.0 million in the corresponding period a year ago.

cash, cash equivalents, and short-term investments were $66.8 million as of September 30, 2019.

The company had signed an agreement to transfer the technology of its marketed product GLASSIA, to Takeda pharmaceuticals (TAK), which was extended to 2022 as per company reports announced in September. GLASSIA is indicated for chronic augmentation and maintenance therapy in individuals with clinically evident emphysema due to severe hereditary deficiency of Alpha1 -PI.

As per the agreement, Takeda will pay royalties on net sales of GLASSIA at a rate of 12% through August 2025 and at 6% until 2040, with a minimum of $5 million annually. Based on the current sales, the company expects royalty in the range of $10 million to $20 million per year from 2022 to 2040.

Magellan Health, Inc. (MGLN) jumped to a new high of $76.86 in intraday trading on Thursday, before closing at $76.77. The stock is up more than 30% year-to-date.

Magellan Health is a provider of healthcare management services.

Last week the company reported that its Live Vibrantly diabetes care program, delivered proven results. The program including a multi-disciplinary team and a dedicated wellness coach is intended to manage all aspects of diabetes from improving wellness, diet, and exercise to optimizing medication use and reduce costs.

On November 8, Magellan Health announced its accreditation by the National Committee for Quality Assurance (NCQA), a widely accepted, nonprofit organization dedicated to improving health care quality.

The company reported third-quarter results on November 1, 2019.

Net income in the third quarter was $21.3 million or $0.86 per share compared with $27.1 million or $1.09 per share in the same quarter a year ago. Adjusted EPS was down at $1.23 in the third quarter versus $1.45 in the prior-year quarter. Analysts' estimate stood at $1.31.

Revenue fell to $1.829 billion from $1.854 billion in the corresponding period last year.

The company's Cash and cash equivalents were $376.7 million in the third quarter.

Looking forward to full-year, the company is lowering its full-year adjusted earnings guidance. Adjusted EPS is expected in the range of $3.35- $4.00 versus previous outlook of $3.70- $4.69. Magellan Health maintains its revenue outlook in the range of $7 billion- $7.2 billion. Analysts expect the company to report earnings of $3.46 per share on revenue of $7.17 billion.