In this article, we discuss the 10 pharma companies making treatment for opioid overdose.
On July 21, a group of four state attorneys general in the United States announced that they had reached a $26 billion settlement with four major drugmakers who developed and sold opioid painkillers despite large-scale addiction and deaths reported from across the country. As part of the settlement, each state will have up to a month to adopt the deal while local governments will be entitled five months to become a part of the settlement. The settlement highlighted the scale and impact of the opioid crisis in the US that became a public health crisis years ago.
According to data released by the National Institute on Drug Abuse, nearly 50,000 people in the US died from opioid overdoses in 2019. The Centers for Disease Control and Prevention estimates that $78 billion are spent on prescription opioid misuse in the country every year. The misuse has resulted in a huge market for opioid disorder treatments. Fortune Business Insights, a leading research firm, projects that the opioid use disorder market would cross $4.5 billion in size by 2026, growing at a compound annual growth rate of close to 11% in the next five years.
Some of the companies working on treatments for opioid overdose include Pfizer Inc. (NYSE: PFE), Novartis AG (NYSE: NVS), and West Pharmaceutical Services, Inc. (NYSE: WST), among others discussed in detail below. As the opioid crisis reaches a climax, the enormous costs associated with it, including healthcare, productivity problems, addiction treatment, and criminal justice issues, are only starting to become clearer. The worst of the crisis may be over, as 17 states in the US have seen a decline in prescription opioid overdose over the past few years.
The market for opioid disorder, however, is an area that big business is aggressively exploring. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and May 29th 2021 our monthly newsletter’s stock picks returned 206.8%, vs. 91.0% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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With this context in mind, here is our list of the 10 pharma companies making treatment for opioid overdose. These were ranked keeping in mind analyst ratings, business fundamentals, and hedge fund sentiment around each.
These pharma stocks are good investment options since the opioid abuse treatment market is set to thrive in the coming months as the Biden administration initiate steps to curtail the opioid overuse problem. The demand of opioid addiction treatment of these companies is expected to increase, according to market analysts.
Pharma Companies Making Treatment for Opioid Overdose
10. Opiant Pharmaceuticals, Inc. (NASDAQ: OPNT)
Number of Hedge Fund Holders: 2
Opiant Pharmaceuticals, Inc. (NASDAQ: OPNT) is placed tenth on our list of 10 pharma companies making treatment for opioid overdose. The company concentrates on the development of drugs that are used to treat addictions and drug overdoses. It is headquartered in California. On July 6, the share price of the firm jumped by close to 35% after it released positive top-line results from a study related to an opioid overdose treatment. The firm beat market expectations on revenue and earnings per share in the first quarter.
On July 7, investment advisory Northland reiterated an Outperform rating on Opiant Pharmaceuticals, Inc. (NASDAQ: OPNT) stock with a price target of $42, backing the firm to deliver topline results from a major drug study in the fourth quarter.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Opiant Pharmaceuticals, Inc. (NASDAQ: OPNT) with 222,815 shares worth more than $2.3 million.
Just like Pfizer Inc. (NYSE: PFE), Novartis AG (NYSE: NVS), and West Pharmaceutical Services, Inc. (NYSE: WST), Opiant Pharmaceuticals, Inc. (NASDAQ: OPNT) is one of the pharma companies making treatment for opioid overdose.
9. Titan Pharmaceuticals, Inc. (NASDAQ: TTNP)
Number of Hedge Fund Holders: 2
Titan Pharmaceuticals, Inc. (NASDAQ: TTNP) is ranked ninth on our list of 10 pharma companies making treatment for opioid overdose. The firm is based in California and makes and sells pharma products relating to the treatment of chronic diseases. It has a market cap of $22 million and posted more than $4.8 million in revenue last year. The firm makes and sells Probuphine, a drug used in maintenance treatment for opioid addiction. Last year, the company announced that it had partnered with Indegene for better marketing of products.
Earlier this year, investment advisory Maxim upgraded Titan Pharmaceuticals, Inc. (NASDAQ: TTNP) stock to Buy from Hold with a price target of $11, appreciating the management changes made that had positioned the firm for the next chapter through the fiscal year.
At the end of the first quarter of 2021, 2 hedge funds in the database of Insider Monkey held stakes worth $107,000 in Titan Pharmaceuticals, Inc. (NASDAQ: TTNP), up from 1 in the preceding quarter worth $74,000.
Alongside Pfizer Inc. (NYSE: PFE), Novartis AG (NYSE: NVS), and West Pharmaceutical Services, Inc. (NYSE: WST), Titan Pharmaceuticals, Inc. (NASDAQ: TTNP) is one of the pharma companies making treatment for opioid overdose.
8. Lannett Company, Inc. (NYSE: LCI)
Number of Hedge Fund Holders: 10
Lannett Company, Inc. (NYSE: LCI) is a Pennsylvania-based pharmaceutical firm. It is placed eighth on our list of 10 pharma companies making treatment for opioid overdose. The firm has a market cap of over $180 million and posted more than $545 million in revenue last year. It beat market expectations on earnings per share in the first quarter. The pharma company makes and sells Buprenorphine Naloxone, a combination medication used to treat opioid use disorder. It reduces mortality rate in opioid disorder cases by 50%.
On July 29, Lannett Company, Inc. (NYSE: LCI) announced that it had signed an agreement with Respirent Pharmaceuticals for the therapeutically equivalent generic of Spiriva Handihaler. The deal gives the firm exclusive commercialization and distribution rights.
At the end of the first quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $21 million in Lannett Company, Inc. (NYSE: LCI), up from 8 in the preceding quarter worth $28 million.
In addition to Pfizer Inc. (NYSE: PFE), Novartis AG (NYSE: NVS), and West Pharmaceutical Services, Inc. (NYSE: WST), Lannett Company, Inc. (NYSE: LCI) is one of the pharma companies making treatment for opioid overdose.
7. BioDelivery Sciences International, Inc. (NASDAQ: BDSI)
Number of Hedge Fund Holders: 15
BioDelivery Sciences International, Inc. (NASDAQ: BDSI) is a specialty pharma company run from North Carolina that focuses on the development of drugs for the treatment of chronic conditions. It is ranked seventh on our list of 10 pharma companies making treatment for opioid overdose. The firm markets a drug named bunavail that is used for the maintenance treatment of opioid dependence. The firm missed market expectations on earnings per share and revenue for the first quarter of this fiscal year.
On May 6, investment advisory Roth Capital maintained a Buy rating on BioDelivery Sciences International, Inc. (NASDAQ: BDSI) stock but lowered the price target to $6.25 from $7, noting that the fundamentals of the firm remained strong.
At the end of the first quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $63 million in BioDelivery Sciences International, Inc. (NASDAQ: BDSI), down from 19 in the previous quarter worth $98 million.
Pfizer Inc. (NYSE: PFE), Novartis AG (NYSE: NVS), and West Pharmaceutical Services, Inc. (NYSE: WST) are some of the pharma companies making treatment for opioid overdose, just like BioDelivery Sciences International, Inc. (NASDAQ: BDSI).
6. Amneal Pharmaceuticals, Inc. (NYSE: AMRX)
Number of Hedge Fund Holders: 15
Amneal Pharmaceuticals, Inc. (NYSE: AMRX) is placed sixth on our list of 10 pharma companies making treatment for opioid overdose. The firm operates as a biopharma company and is headquartered in New Jersey. The company makes and sells the Naloxone drug, a medication that tends to block the effects of opioids and is used to reverse opioid overdoses. The company has a market cap of over $1.5 billion and posted more than $1.9 billion in revenue last year. The firm beat market expectations on earning per share in the first quarter.
On April 14, investment advisory Guggenheim maintained a Buy rating on Amneal Pharmaceuticals, Inc. (NYSE: AMRX) stock and raised the price target to $8 from $6.5, underlining the firm had delivered a strong initial launch of a new drug.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Eversept Partners is a leading shareholder in Amneal Pharmaceuticals, Inc. (NYSE: AMRX) with 4.7 million shares worth more than $32 million.
Pfizer Inc. (NYSE: PFE), Novartis AG (NYSE: NVS), and West Pharmaceutical Services, Inc. (NYSE: WST) are some of the pharma companies making treatment for opioid overdose, alongside Amneal Pharmaceuticals, Inc. (NYSE: AMRX).
5. Novartis AG (NYSE: NVS)
Number of Hedge Fund Holders: 19
Novartis AG (NYSE: NVS) is a Switzerland-based biotechnology and pharmaceutical firm founded in 1996. It is placed fifth on our list of 10 pharma companies making treatment for opioid overdose. In 2019, Sandoz, a Novartis subsidiary, and Pear Therapeutics announced that they would begin selling reSET-O(TM), a drug developed by both firms for treatment of patients with Opioid Use Disorder. The companies had begun working on the drug in late 2018 and obtained approval for it from authorities in the US the next year.
In earnings results for the second quarter, posted on July 21, Novartis AG (NYSE: NVS) reported earnings per share of $1.66, beating market estimates by $0.17. The revenue over the period was more than $12.9 billion, up over 14% year-on-year.
At the end of the first quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Novartis AG (NYSE: NVS), down from 23 the preceding quarter worth $1.6 billion.
In its Q4 2020 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Novartis AG (NYSE: NVS) was one of them. Here is what the fund said:
“Novartis is one of Europe’s largest pharmaceutical companies and possesses a highly diversified portfolio of innovative products. Its share price underperformed both the broader market and its pharma peers during 2020, largely due to a few disappointing late-stage trials and the company’s lack of Covid-19-related therapeutics or vaccines. These short-term issues provided us with an attractive entry point to invest in a leading pharmaceutical franchise with compelling economics. We estimate that the market is currently ascribing almost no value to Novartis’ pipeline despite the company’s excellent track record in new drug development. We expect that Novartis will deliver mid-single-digit, top-line growth and expand margins over the next five years as a result of its cost-savings plan. The company possesses one of the most diversified product portfolios in the pharma industry with 15 $1b+ compounds, which reduces its reliance on any single compound.”
4. Teva Pharmaceutical Industries Limited (NYSE: TEVA)
Number of Hedge Fund Holders: 24
Teva Pharmaceutical Industries Limited (NYSE: TEVA) is a pharmaceutical company based in Israel. It is placed fourth on our list of 10 pharma companies making treatment for opioid overdose. In earnings results for the second quarter, posted on July 28, the firm reported earnings per share of $0.59, in line with estimates. The revenue over the period was close to $4 billion, up close to 1% year-on-year. In 2019, while settling an opioid-related case, the firm offered to provide $23 billion worth of opioid addiction treatment drugs.
On April 6, investment advisory RBC Capital maintained a Sector Perform rating on Teva Pharmaceutical Industries Limited (NYSE: TEVA) stock with a price target of $11. Daniel Busby, an analyst at the firm, issued the ratings update.
Out of the hedge funds being tracked by Insider Monkey, Nebraska-based investment firm Berkshire Hathaway is a leading shareholder in Teva Pharmaceutical Industries Limited (NYSE: TEVA) with 42 million shares worth more than $493 million.
3. West Pharmaceutical Services, Inc. (NYSE: WST)
Number of Hedge Fund Holders: 26
West Pharmaceutical Services, Inc. (NYSE: WST) is a Pennsylvania-based company that makes and sells injectable drugs and other healthcare products. It is ranked third on our list of 10 pharma companies making treatment for opioid overdose. The firm sells non-opioid analgesics like Diclofenac ophthalmic. The company has a market cap of over $30 billion and posted more than $2 billion in revenue last year. It was founded in 1923 and employs over 9,000 people across the world.
In earnings results for the second quarter, posted on July 29, West Pharmaceutical Services, Inc. (NYSE: WST) reported earnings per share of $2.46, beating predictions by $0.72. The revenue over the period was $723 million, up 37% year-on-year.
Out of the hedge funds being tracked by Insider Monkey, Boston-based firm Arrowstreet Capital is a leading shareholder in West Pharmaceutical Services, Inc. (NYSE: WST) with 378,363 shares worth more than $106 million.
In its Q3 2020 investor letter, Baron Asset Fund, an asset management firm, highlighted a few stocks and West Pharmaceutical Services, Inc. (NYSE: WST) was one of them. Here is what the fund said:
“West Pharmaceutical Services, Inc. manufactures components and systems for the packaging and delivery of injectable drugs. Shares rose on strong second quarter financial results and raised 2020 guidance. Business is benefiting from strong demand for West’s products and services, as the large majority of newly approved biologic drugs utilize the company’s packaging. We think demand should further accelerate as COVID-19 vaccine manufacturers come to market. We continue to believe West has a promising long-term growth outlook and a secure competitive position.”
2. Alkermes plc (NASDAQ: ALKS)
Number of Hedge Fund Holders: 31
Alkermes plc (NASDAQ: ALKS) is placed second on our list of 10 pharma companies making treatment for opioid overdose. The company operates as a biopharma firm focusing on the development of drugs for various therapeutic needs. It is headquartered in Ireland. On June 1, the company announced that it obtained regulatory approval for Lybalvi, a drug marketed by the firm for the treatment of schizophrenia and bipolar I disorder. The drug is made from samidorphan, a newly developed opioid antagonist.
On August 3, investment advisory Mizuho maintained a Buy rating on Alkermes plc (NASDAQ: ALKS) stock with a price target of $33, noting that there for additional upside as a new drug by the firm proceeded through registration processes.
At the end of the first quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth $595 million in Alkermes plc (NASDAQ: ALKS), up from 30 the preceding quarter worth $678 million.
1. Pfizer Inc. (NYSE: PFE)
Number of Hedge Fund Holders: 65
Pfizer Inc. (NYSE: PFE) is ranked first on our list of 10 pharma companies making treatment for opioid overdose. The company makes and sells pharmaceutical products and is based in New York. Amid reports of an increase in drug overdose deaths in the US due to the COVID-19 lockdowns, the company pledged in April this year to donate more than 1 million doses of naloxone, a drug developed by firm that saves lives by reversing opioid overdoses, to California-based non-profit group Direct Relief.
On July 30, investment advisory Mizuho kept a Neutral rating on Pfizer Inc. (NYSE: PFE) stock but raised the price target to $43 from $42, noting that the firm delivered strong earnings in the second quarter that easily beat market expectations.
At the end of the first quarter of 2021, 65 hedge funds in the database of Insider Monkey held stakes worth $2 billion in Pfizer Inc. (NYSE: PFE), up from 63 in the preceding quarter worth $1.8 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Pfizer Inc. (NYSE: PFE) was one of them. Here is what the fund said:
“Our underweights in health care and staples contributed to relative performance during the period. As we continue to focus the portfolio on high-conviction ideas, we sold Pfizer in late 2020, in the health care sector.”
You can also take a peek at 10 Best Medical Stocks Under $10 and 10 Best Stocks to Buy According to Senvest Management.
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Disclosure. None. 10 Pharma Companies Making Treatment for Opioid Overdose is originally published on Insider Monkey.
