The end of the year is right around the corner. But this time of year actually is a beginning for certain healthcare stocks. That's because important share-performance catalysts and/or revenue opportunities lie just ahead. And that's why these players make great buys in November.
CRISPR Therapeutics (CRSP 2.19%) is submitting what may become its first commercialized gene-editing treatment to regulators this month. Axsome Therapeutics (AXSM +3.49%) just started selling a potential blockbuster antidepressant. And sales are multiplying for AbbVie's (ABBV +2.50%) two key immunology drugs. These catalysts could lift the shares in the near term -- and over time. Let's take a closer look at each.
1. CRISPR Therapeutics
CRISPR is heading for a major moment. The gene-editing specialist, along with its partner Vertex Pharmaceuticals, begins a regulatory submission this month. The companies are requesting approval for exa-cel, an investigational therapy for blood disorders beta thalassemia and sickle cell disease.
They expect to complete submissions in Europe and the U.K. by the end of this year. And they're set to complete the U.S. request by the first quarter of next year.
The potential approval of exa-cel could be particularly big for CRISPR. It would be the first commercialized product using the company's gene-editing technology. And the product could eventually generate blockbuster revenue.
NASDAQ: CRSP
Key Data Points
Doctors and patients may flock to exa-cel for two reasons. First, treatment options for the two blood disorders are currently limited. And second, exa-cel is meant to be a one-time curative treatment.
Exa-cel could become a very important product for CRISPR. At the same time, CRISPR is making progress with other pipeline candidates. These represent possible revenue down the road.
The company expects to report additional data from a pivotal trial of CTX110, an immuno-oncology candidate, this year. And it plans to launch clinical trials of another immuno-oncology candidate in the first half of next year.
2. Axsome Therapeutics
Earlier this year, Axsome began selling its first drug -- one it acquired from Jazz Pharmaceuticals. Sunosi is a treatment for excessive daytime sleepiness associated with sleep disorders.
Then, Axsome won U.S. regulatory approval for Auvelity, a drug for major depressive disorder. Auvelity could bring in $1.3 billion by 2029, according to GlobalData.
The antidepressant market is crowded, but Auvelity has features that could help it stand out. Importantly, it's fast acting -- with significant improvement seen in just one week. Another plus is Auvelity isn't linked to weight gain -- a common side effect of antidepressants.
NASDAQ: AXSM
Key Data Points
Late last month, Axsome began selling Auvelity. So we should expect to begin seeing revenue generated from the drug as of the fourth quarter of this year.
There could be even more sources of revenue ahead, and Axsome may turn a negative situation around. The The U.S. Food and Drug Administration (FDA) initially rejected Axsome's migraine treatment candidate. But after a meeting with the FDA, Axsome plans to address concerns and resubmit the candidate next year.
The FDA rejection had to do with chemistry, manufacturing, and controls. These elements are easier to adjust than an efficacy or safety issue. So there's reason to be optimistic about this Axsome candidate -- and the possibility of yet another drug on the horizon.
3. AbbVie
Let's talk about the bad news first: AbbVie's super-blockbuster immunology drug Humira is set to lose exclusivity next year. But here's the good news: AbbVie's two younger immunology drugs, Skyrizi and Rinvoq, together may eventually surpass Humira's peak sales.
So far, things are on the right track. In the third quarter, Skyrizi and Rinvoq were on target to generate more than $7.5 billion in revenue this year. That would beat AbbVie's forecasts.
The company's strategy is to launch both drugs across all of Humira's treatment areas. This strategy is working so far. And AbbVie is in the early stages of rolling out the drugs in the areas of inflammatory bowel disease and psoriatic arthritis. So we should see more growth ahead in these indications.
NYSE: ABBV
Key Data Points
Another key growth area for AbbVie lies in aesthetics. The company sells two of the world's most well-known brands: Botox wrinkle treatment and the Juvederm collection of dermal fillers.
The company expects today's economic weakness to weigh on discretionary spending -- and therefore hurt demand for aesthetic treatments. But this is a short-term problem. The global facial-aesthetics market is forecast to grow in the double digits throughout the decade. And AbbVie's business is well-positioned to benefit.
All of this means AbbVie has tickets to short-term and long-term growth. And that's reason to add this top stock to healthcare portfolios right now.
