AEterna Zentaris (TSX:AEZS)(NASDAQ:AEZS) stock was up 4.76% in early afternoon trading on April 4. Shares have surged 65.5% in 2019 so far. The stock is up over 330% from the prior year. Shares hit a 52-week high in trading this week. Is the stock overpriced, or should you look to add it to your portfolio and ride the wave?
AEterna Zentaris is a specialty biopharmaceutical company that focus on licensing of products in biotherapeutics. This is the fastest growing subsector in the pharmaceutical industry. The stock gained momentum after the company announced it was exploring long term strategic options. This may include a sale down the line.
The company released its fourth-quarter and full-year results for 2018 on March 26. Total revenue climbed to $26.9 million compared to $0.9 million in the prior year. Income from operations rose to $9.8 million compared to an operating loss of $23.1 million in 2017.
After year-end, the European Medicines Agency (EMA) granted market authorization for macimorelin. The drug is used in the diagnosis of adult growth hormone deficiency.
AEterna has been a fantastic growth stock in the biopharma sector over the past year. The progress with macimorelin is very encouraging to kick off 2019. Instead of hoping for an acquisition, investors can find encouraging signs in its present business.
The stock is pricey right now and had an RSI of 76 as of this writing.
This puts it in overbought territory. I like AEterna going forward, but value investors should seek to add on the dips.
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