Knight Therapeutics (TSX:GUD) is a Montreal-based specialty pharmaceutical company. A few months ago, Knight made a big splash with its $418 million acquisition of the Latin American biopharma company Grupo Biotoscana.
The deal was viewed as a solid strategic fit.
Investors were less enthused when the company released its Q3 2019 results in November. It posted a net loss of $2.95 million compared to net earnings of $12.9 million in the prior year. However, revenues did rise 25% year-over-year to $4.03 million.
On the product end, Knight announced that it had received regulatory approval from Health Canada for NERLYNX for the treatment of HER2-positive breast cancer. The breast cancer therapeutics market is set for explosive growth in the coming years.
Grand View Research recently forecast that the breast cancer drug market would grow to $38.4 billion by 2025. This would represent a CAGR of 10.7% over the forecast period.
Knight Therapeutics is a long-term speculative stock, but one that could pay off huge. That is why its current price is so enticing. Investors can expect to see its fourth quarter and full-year results for 2019 in the first half of March.
This gives value investors some time to buy on the dip. The stock last had an RSI of 17, which puts Knight Therapeutics deep in technically oversold territory.
Biotech is a subsector that I love to start this decade, so Knight is one of the stocks I’m excited about in February.
