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It appears that growth is getting much tougher to come by in this market. S&P earnings are set to decline for the first time in three years when companies start to report third quarter earnings starting in early October. However, there are still pockets of companies rapidly growing earnings and revenues. Here are two fast growing pharma stocks that received positive comments from key analysts this week.

"Akorn, Inc. (NASDAQ:AKRX) engages in the manufacturing and marketing of diagnostic and therapeutic ophthalmic pharmaceuticals products, niche hospital drugs, and injectable pharmaceuticals in the United States and internationally." (Business description from Yahoo Finance)

4 reasons Akorn is undervalued at $12 a share:

  1. Bank of America just initiated the shares as a "Buy" with an $18 price target. The median price target by the five analysts that cover the stock now stands above $16.50 a share.
  2. The company is on track to post almost 90% revenue growth in FY2012 and analysts project 25% sales increases in FY2013. The stock has a five year projected PEG of less than 1 (.84).
  3. Earnings are increasing rapidly. The company earned 35 cents a share in FY2011, but is on track to post 53 cents a share in FY2012. Analysts see the company making 67 cents a share.
  4. Given its relatively small market capitalization and quickly rising revenues, this company could easily find itself an acquisition target. As Bank of America pointed out in its buy rating, "we see the company as an attractive asset in a consolidating generic pharma environment."

"Regeneron Pharmaceuticals (NASDAQ:REGN) is a biopharmaceutical company that discovers, develops, and commercializes medicines for the treatment of serious medical conditions in the United States." (Business description from Yahoo Finance)

4 reasons REGN is a solid growth play at $136 a share:

  1. Goldman Sachs just reiterated its buy rating and upped its price target on REGN from $168 to $170. The 14 analysts that cover the stock have a median price target of $161 on Regeneron.
  2. Revenues are exploding at this biopharma. The company booked just over $450mm in sales in FY2011 and is on track to post over $1.2B in revenues in FY2012. Analysts see over $1.6B in sales in FY2013.
  3. Earnings also are on a huge up ramp. The company lost $2.41 a share in FY2011 but looks poised to make over $2.70 a share in FY2012. Analysts project the company will make over $4.25 a share in FY2013.
  4. The company has crushed earnings estimates each of the last two quarters (over 100% over consensus estimates). Consensus estimates for FY2012 have more than doubled in the last three months. Estimates for FY2013 have risen some 60% in the same time frame.
Source: 2 Fast Growing Pharma Stocks Receiving Some Love From Analysts This Week