ChemoCentryx (CCXI) is a biopharmaceutical business that develops therapeutics and brings them to market. CCXI therapeutics are administered orally instead of through a patch, gel, injection, or another delivery method.
CCXI's overarching goal is to provide the masses with therapeutics that combat different types of cancer, autoimmune diseases, and inflammatory disorders. This is certainly a desirable aim, yet reaching it is not exactly easy. As medical industry insiders admit, it might take decades or even centuries to develop a cure for cancer.
Does CCXI belong in your portfolio? Let's take a look at the details of this biopharmaceutical stock to answer that question.
CCXI Points of Note
CCXI is currently trading at $10.73. The stock's 52-week low is $9.55. CCXI's 52-week high is $70.29. The low price is certainly intriguing. However, those who research CCXI will find the stock's low price should not be construed as a buying opportunity.
CCXI fell off a cliff last week after the United States Food and Drug Administration (FDA) publicized briefing information provided to an advisory committee stating considerable concerns regarding CCXI's avacopan data. Avacopan is a drug created to treat ANCA-vasculitis.
ANCA is an acronym short for anti-neutrophilic cytoplasmic autoantibody. Avacopan is designed to prevent small blood vessels from swelling. The advisory committee did not vote against the formal approval of avacopan. However, these documents made it quite clear that there are legitimate doubts about whether avacopan will be approved for release in the market.
To be more specific, the language of the briefing documents states there are concerns that the data cannot be interpreted to show the avacopan provides a substantial benefit. The news should not have shell-shocked investors because the FDA previously stated it had notified the company that there were concerns about the drug's late-stage study design.
The committee voted ten yay and eight nay for the drug's approval. The vote about the efficacy of information stemming from CCXI's clinical study ended in a tie, with nine yays and nine nays.
The committee voted ten yays to eight nays in regard to avacopan's safety profile being sufficient enough to win approval from the FDA. It must be noted the FDA is not obligated to adhere to the advisory committee's recommendations. However, the FDA is typically in lockstep with committee recommendations.
In short, there is some question as to whether the FDA will move forward with the approval of avacopan. Those who study such drugs and the biopharma industry as a whole indicate CCXI will likely be forced to complete a subsequent clinical study prior to refiling for approval.
CCXI According to Analysts
Analysts have high hopes for CCXI, establishing an average target price of $88.88 for the stock. If CCXI reaches this level, it will have popped by an astonishing 233%. Of the eight analysts who have issued recommendations on CCXI, four rate the stock a Strong Buy, three rate it a Buy, and one rates it as a Hold.
CCXI POWR Ratings Performance
CCXI has an overall grade of D, which translates into a Sell rating in the POWR Ratings. The stock has grades of D in the Growth, Momentum, and Stability components. Click here to learn more about how CCXI fares in the Value, Quality, and Sentiment components.
Out of the nearly 500 publicly traded companies in the Biotech industry, CCXI is ranked 417th. Investors can find top stocks in this industry by clicking here.
Is CCXI Deserving of a Place in Your Portfolio?
CCXI is not worthy of your hard-earned money at this point. CCXI has a Sell rating in the POWR Ratings and is ranked in the bottom 25% of stocks in the Biotech industry.
CCXI shares fell $0.16 (-1.49%) in premarket trading Wednesday. Year-to-date, CCXI has declined -82.74%, versus a 10.44% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.
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