3. Navidea Biopharmaceuticals Inc (NYSEMKT:NAVB)
Some investors were likely befuddled by Navidea Biopharmaceuticals Inc (NYSEMKT:NAVB)’s stock action earlier this year. The company received FDA approval in March for Lymphoseek, its radiopharmaceutical agent used for imaging lymph nodes in patients with breast cancer or melanoma. That was great news, but shares dropped quickly and still haven’t returned to previous levels.
This market reaction doesn’t mean that Lymphoseek lacks solid potential. It does. The product should appeal to oncologists. Navidea Biopharmaceuticals Inc (NYSEMKT:NAVB) has a tight relationship with Cardinal Health Inc (NYSE:CAH), which has exclusive U.S. distribution rights for Lymphoseek. Cardinal Health Inc (NYSE:CAH) operates the largest nuclear pharmacy network in the nation with 140 pharmacies.
That market potential seems likely to expand in the relatively near future. Navidea Biopharmaceuticals Inc (NYSEMKT:NAVB) submitted for European approval last December, which I expect the company will obtain. The company is also looking to expand use of the diagnostic agent to other forms of cancer, with a supplemental New Drug Application planned for later this year for use of Lymphoseek with head and neck cancer patients.
One-year price targets for Navidea Biopharmaceuticals Inc (NYSEMKT:NAVB) go as high as $9 per share with an average target of $5. At the stock’s current price, shares would need to rise somewhat higher than that average level to double. However, if the more optimistic analysts are right, doubling is doable.
Taking a swing
Do these three stocks truly have a shot at doubling by next summer? I think they do. However, know that events must unfold just right for it to happen for any of them. Negative regulatory decisions, unresolvable safety issues, and a whole host of other issues could result in any of these biotech stocks falling significantly within the next year rather than going up.
What’s true in baseball is true in investing: The greater the possibility of reward, the greater the risk. After all, Babe Ruth wasn’t just the home run leader. He was the strikeout leader, too. Swinging for the fences means you often swing and miss. But sometimes, it’s worth taking a swing anyway.
The article 3 Biotech Stocks That Could Double by Next Summer originally appeared on Fool.com and is written by Keith Speights.
Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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