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Y-mAbs Therapeutics Is Set to Rebound
Stock Analysis & Ideas

Y-mAbs Therapeutics Is Set to Rebound

Shares of Y-mAbs Therapeutics (YMAB) have performed very poorly over the last three months, dropping 11.9%, and missing the overall market heavily.

However, I believe that this stock can still recover, eventually realigning with the market if catalysts work as expected. Thus, I am bullish on this stock. (See Analysts’ Top Stocks on TipRanks)

Headquartered in New York, Y-mAbs Therapeutics has reached the commercial stage with a treatment called Danyelza targeting patients with neuroblastoma.

Now the company is seeking commercialization for another treatment, called omburtamab, addressing various cancers.

These diseases include neuroblastoma metastases affecting the meninges and central nervous system, and tumors that grow in the abdomen and pelvic area of the body. As well, aggressive forms of brain tumors.

Q2 Earnings

The company reported a net loss of nearly $22.9 million ($0.53 per share) in the second quarter of 2021, which shows a substantial improvement over the year before, when the net loss was $40.4 million, or $1.01 per share.

The company’s result surprised Wall Street, as analysts predicted a larger net loss averaging $0.67 per share.

The credit for this should be attributed to sales which, taking advantage of the progress made by the commercialization of Danyelza in the U.S., allowed revenues to come in at $11 million, outperforming projections by almost $4 million. 

As of the end of the quarter, the balance sheet had $233.6 million in cash on hand and equivalents.

Pipeline Improvements, Developments

The stock has several catalysts.

As Danyelza gains experience among U.S. healthcare operators, the top and bottom lines should continue to improve.

Revenues are expected to be again above $10 million in the third quarter of this year, approaching $13.5 million in the final quarter.

The net loss for the whole year is projected to be less than 65% of the year’s ago net loss.

Danyelza might be approved as a treatment for neuroblastoma in China in the first quarter of 2022.

Y-mAbs Therapeutics’ omburtamab has been labeled by the U.S. Food and Drug Administration as a treatment for rare cancerous brain tumors in children. This increases the chances for a facilitated review process.

Another boost might come from the European Union, should its drugs agency release the sought-after go-ahead for the commercialization of omburtamab in Europe.

Wall Street’s Take

In the past three months, one Wall Street analyst has issued a 12-month price target for YMAB. The average Y-mAbs Therapeutics price target is $68, implying 143.9% upside potential.

Summary

As a result of the last three months of trading, the shareholders are not happy with their investments in Y-mAbs Therapeutics.

The latest quarterly report gives reasons for optimism, however.

Disclosure: At the time of publication, Alberto Abaterusso did not have a position in any of the securities mentioned in this article.

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