Revance Therapeutics Inc

Revance Therapeutics Inc (NASDAQ: RVNC) is a biopharmaceutical company. It is involved in therapeutic and aesthetic offerings.

Investment Highlights – Expensive at USD 29.07

• RVNC still depends on external funding to run its operations.
• The Company still makes losses as of Q2 FY2021.
• The President of Innovation and Technology and Director, Aubrey Rankin, recently sold shares worth about USD 603,000.
• On the profitability front, RVNC has a lower net margin than the industry median of 4.9% since Q2 FY2020.
• On the leverage front, RVNC has a higher debt/equity ratio than the industry median of 0.48x since Q1 FY2021.
• The stock is trading near its 52-week high price of USD 34.62. Hence, there is doubt about its upside potential from the current level, implying a potential correction in the near term.
• From a technical standpoint, 20-day EMA at about USD 29.85 is sustaining above the stock price. Hence, the stock price could move downwards in the near term.

Share Price Chart

(Source: Refinitiv, Analysis done by Kalkine Group)

Conclusion

Based on its loss-making operations and the poorer profitability and liquidity position of the Company than the industry, we have given an "EXPENSIVE" stance on Revance Therapeutics Inc at the closing market price of USD 29.07 (as of 6 August 2021). 

Kala Pharmaceuticals Inc

Kala Pharmaceuticals Inc (NASDAQ: KALA) is a biopharmaceutical company. It develops and commercializes therapeutics, with main focus on the treatment of eye diseases.

Investment Highlights – Watch at USD 3.14

• The Company still is a loss-making entity as of Q2 FY2021.
• It depends on external funding to run its operations.
• On the profitability front, KALA has a lower net margin than the industry median of 4.9% since Q2 FY2020.
• On the leverage front, KALA has a higher debt/equity ratio than the industry median of 0.48x since Q2 FY2020.
• From a technical standpoint, 20-day EMA at about USD 3.79 is sustaining above the stock price, implying a potential downward movement in the stock price in the near term.

Share Price Chart

(Source: Refinitiv, Analysis done by Kalkine Group)

Conclusion

Based on the poorer profitability and leverage position of the Company than the industry, and its dependence on external funding, we have given a “WATCH” recommendation on Kala Pharmaceuticals Inc at the closing market price of USD 3.14 (as of 6 August 2021). 

Opiant Pharmaceuticals Inc

Opiant Pharmaceuticals Inc (NASDAQ: OPNT) is a specialty pharmaceutical company. It makes medicines for drug overdose and addictions.

Investment Highlights – Expensive at USD 16.15

• The Company’s cash position has declined to USD 33.4 million in Q2 FY2021 from USD 48.3 million in FY2020.
• On the profitability front, OPNT has a lower net margin than the industry median of 4.9% since Q4 FY2020.
• The stock is trading near its 52-week high price of USD 19.90, raising doubt about its upside potential from the current level. Hence, a correction in the near term cannot be ruled out.
• From a technical standpoint, 14-day RSI at about 53.45 is moving towards the overbought zone. Hence, there could be a potential downward movement in the stock price in the near term.

Share Price Chart

(Source: Refinitiv, Analysis done by Kalkine Group)

Conclusion

Based on the reduced cash position and the lower profitability of the Company than the industry, we have given an "EXPENSIVE" stance on Opiant Pharmaceuticals Inc at the closing market price of USD 16.15 (as of 6 August 2021).

*The reference data in this report has been partly sourced from Refinitiv.