Healthcare stocks in the mid-cap range present options for expanding a portfolio without adding risk that can come with solely investing in small-cap stocks. The companies in our list today have notable growth projections which means they have the funding in place to continue to do the necessary research and development to get to the next level. All of these healthcare stocks have the added advantage of receiving a rating of 'Buy' by industry analysts.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 5-Year Expected EPS Growth Rate is a long term annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
We first looked for mid cap healthcare stocks. We next screened for businesses that are considered high-growth, with 5-year projected EPS growth above 25%. We then screened for businesses that analysts rate as "Buy" (2 < mean recommendation < 3).
Do you think these mid-cap stocks are worth more than their current valuations? Please use our list to assist with your own analysis.
1) VIVUS Inc. (VVUS)
VIVUS Inc. has a 5-Year Projected Earnings Per Share Growth Rate of 51.00%, and a Analysts' Rating of 2.30. The short interest was 13.97% as of 07/27/2012. VIVUS, Inc., a biopharmaceutical company, is developing therapies to address obesity, sleep apnea, diabetes, and male sexual health. Its lead investigational product, Qnexa, has completed Phase 3 clinical trials for the treatment of obesity. Qnexa is also in Phase 2 clinical development for the treatment of type 2 diabetes and obstructive sleep apnea.
2) BioMarin Pharmaceutical Inc. (BMRN)
BioMarin Pharmaceutical Inc. has a 5-Year Projected Earnings Per Share Growth Rate of 36.00%, and a Analysts' Rating of 1.70. The short interest was 9.65% as of 07/27/2012. BioMarin Pharmaceutical Inc. develops and commercializes biopharmaceuticals for serious diseases and medical conditions in the United States, Europe, Latin America, and rest of the world. The company's commercial products include Naglazyme, a recombinant form of N-acetylgalactosamine 4-sulfatase enzyme used for the treatment of mucopolysaccharidosis (MPS) VI; Kuvan, a proprietary synthetic oral form of 6R-BH4 used to treat patients with phenylketonuria (PKU), a metabolic disease; Aldurazyme used for the treatment of mucopolysaccharidosis I, a genetic disease; and Firdapse used to treat Lambert Eaton Myasthenic Syndrome, an autoimmune disease. It develops GALNS, an enzyme replacement therapy for the treatment of MPS IVA, a lysosomal storage disorder; PEG-PAL, an enzyme substitution therapy that is under Phase II clinical trial to treat PKU; BMN-673, a Phase I/II clinical trial product for the treatment of cancer; BMN-701, an enzyme replacement therapy, which is under Phase I/II clinical trials for Pompe disease, a glycogen storage disorder; and BMN-111, a peptide therapeutic that is under Phase I clinical trial for the treatment of achondroplasia.
3) Alkermes plc (ALKS)
Alkermes plc has a 5-Year Projected Earnings Per Share Growth Rate of 29.00%, and a Analysts' Rating of 1.80. The short interest was 6.80% as of 07/27/2012. Alkermes Public Limited Company, an integrated biopharmaceutical company, develops medicines that enhance patient outcomes. The company offers RISPERDAL CONSTA for schizophrenia and bipolar I disorder; INVEGA SUSTENNA for the treatment of schizophrenia; AMPYRA/ FAMPYRA for the treatment of multiple sclerosis; BYDUREON for the treatment of type II diabetes; VIVITROL for alcohol and opioid dependence; TRICOR, LIPANTHYL, LIPIDIL, and SUPRALIP to lower cholesterol; ZANAFLEX for muscle spasticity; AVINZA for severe pain; EMEND for the treatment of nausea associated with chemotherapy and surgery; and FOCALIN XR and RITALIN LA for attention deficit and hyperactivity disorder. Its products also include MEGACE ES for the treatment of cachexia associated with AIDS; LUVOX CR for obsessive-compulsive disorder; RAPAMUNE for the prevention of renal transplant rejection; NAPRELAN for various mild to moderate pain indications; VERAPAMIL SR, VERELAN, VERELAN PM, VERAPAMIL PM, VERECAPS, UNIVER, and AFE Ditab CR for hypertension; and DILZEM SR, DILZEM XL, DILTELAN, ACALIX CD, DINISOR, TILAZEM CR, and CARDIZEM CD for hypertension and/or angina.
*Company profiles were sourced from Finviz. Financial data was sourced from Yahoo Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.