Latest news with #MichaelYee
CNBC
6 days ago
- Business
- CNBC
These biotech stocks will benefit as generative AI speeds up drug discovery, Jefferies says
Investors are underappreciating the impact generative artificial intelligence will have on biotech stocks, according to Jefferies. Biotech stocks have had a challenging couple of years, falling into a correction after an initial surge at the onset of the coronavirus pandemic, as they navigated a higher interest rate environment. More recently, tariffs and staffing reductions at the U.S. Department of Health and Human Services have also hit the sector. The SPDR S & P Biotech ETF (XBI) is down more than 11% in 2025, while the S & P 500 has eked out a slight gain. XBI YTD mountain XBI Nevertheless, the sector is set to get a boost from the adoption of generative AI in drug discovery, which Michael Yee, senior biotech analyst at Jefferies, said will save companies years and billions of dollars in getting new drugs to market. "We know that biotech is a billion dollars to find a drug, up to 10 years to get a drug to market, and 90% of drugs fail," Yee told CNBC's David Faber on "Squawk on the Street" on Wednesday. "So, we think that based on analysis and some of the technologies these companies are doing, you can cut the drug time by years, and cut the probabilities significantly in half to get drugs to market, and that can save billions of dollars and increase the odds of success and return on investment for companies and investors." "It is very early stage, and we're out there saying, five years from now, we think we'll see tremendous progress in drugs that are in the clinic from test tubes today that were basically done using generative AI," Yee continued. "We can cut a 10 year process, we'd be down to seven of eight years." To be sure, there are some near-term regulatory challenges the sector is facing, but Yee said he expects that any downside from negative headlines is already priced into the stocks. "We're actually optimistic for the rest of the year," he said. Here are some stocks poised to benefit: Amgen , one of the world's largest biotech companies, is one firm integrating generative AI to analyze human datasets for its research. The buy-rated stock is up 7% this year, according to the CNBC analyst consensus tool. Software company Schrodinger is set to benefit from increased research and development spending, using machine learning in drug discovery programs. The stock is up 11% this year. Illumina , which develops systems for genetic variation analysis, and Danaher, a life sciences and diagnostics company, are two other companies to benefit. The stocks are down 38% and 17% this year, respectively.
CNBC
6 days ago
- Business
- CNBC
Jefferies' Michael Yee: Drug discovery could be one of the biggest beneficiaries of generative AI
Michael Yee, Jefferies senior biotech analyst, joins CNBC's 'Squawk on the Street' to discuss how AI could fuel drug discovery and development, the timeline for when pharmaceutical companies could see benefits from AI, and more.
Yahoo
19-05-2025
- Business
- Yahoo
PDS Ltd (BOM:538730) Q4 2025 Earnings Call Highlights: Strong Revenue Growth Amidst ...
Release Date: May 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. PDS Ltd (BOM:538730) achieved a 25% year-on-year growth in gross merchandise value, reaching approximately $2.2 billion. The company is well-positioned to scale up sourcing volumes for UK customers due to the UK-India FTA and the acquisition of Nit Gallery. PDS Ltd has strengthened its North America strategy by appointing Michael Yee, who brings extensive experience and customer relationships. The company has initiated a cost optimization program with BCG, expected to yield tangible benefits in the second half of the year. PDS Ltd reported a 21% year-on-year increase in revenue, closing the year with INR 12,578 crore. The company faced challenges with a slower-than-expected sales ramp-up in new verticals, resulting in a net loss of INR 162 crore. Margins witnessed pressure, declining by 23 basis points due to the impact of retail bankruptcies and agency business declines. The working capital days increased to 17, largely due to changes in business mix and geopolitical disturbances. PDS Ltd's profitability was impacted by investments in new verticals, with EBITDA margins at 3.6% after adjustments. The company experienced a temporary negative operating cash flow due to working capital build-up. Warning! GuruFocus has detected 1 Warning Sign with BOM:538730. Q: Can you explain the increase in depreciation this quarter? A: The increase in depreciation is due to investments in our costing tool across the organization, development of a vendor portal, and enhancements to properties in Gurgaon and the UK. These projects have led to increased depreciation year over year. (Unidentified_8) Q: What are the expected cost savings from merging loss-making verticals and other cost reduction initiatives? A: We anticipate a reduction of approximately 25-30% in losses from new verticals, translating to about 40-45 crore in savings. Additionally, centralized cost reductions are expected to save another 25-30 crore. Overall, we aim for a total savings of around 50 crore. (Unidentified_3) Q: How is the North America strategy being recalibrated, and what changes are being made? A: Michael Yee has been appointed to lead the North America strategy, replacing Mark Green. Michael brings a proactive approach and strong customer relationships. The reorganization aims to streamline operations and enhance business conversion rates. (Unidentified_10) Q: What is the outlook for revenue growth and profitability in FY26? A: We are targeting mid-teens growth in dollar terms for FY26, driven by factors like the UK FTA and diversified sourcing. We are also focusing on cost optimization and expect a gradual improvement in profitability. (Unidentified_4) Q: Can you provide details on the other comprehensive loss reported this quarter? A: The other comprehensive loss of 48 crore is primarily due to the increase in retirement age in Bangladesh and a reduction in the valuation of our investment portfolio. Additionally, currency depreciation in Bangladesh contributed to a 23 crore loss. (Unidentified_8) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
Is Day One Biopharmaceuticals, Inc. (DAWN) the Best Low Priced Biotech Stock to Buy Now?
We recently published a list of . In this article, we are going to take a look at where Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) stands against other best low priced biotech stocks to buy now. On May 8, Michael Yee, Senior Biotech Analyst at Jefferies, appeared on CNBC to discuss how tariffs and policy risks are pressuring the biotech industry, while simultaneously iterating that low valuations in the sector may present buying opportunities once the uncertainty clears. Talking about the broader impact of tariffs on the biotech sector, he said that the estimated tariff rate would be around 50%, while the negative EPS impact would be around -4-5%. According to Yee, the sector is facing several challenges that have caused significant pressure and anxiety among biotech investors. One of them is definitely sector-specific tariffs. The 50% estimation is a manageable impact for many of the biotech companies, but there are also other challenges being floated. Another factor is the most favored nations that could drop drug prices by as much as 40% to 50%, making it a related impact. Assuming all these impacts are going into place, there are definitely uncertain downside risks to the model. However, the takeaway is that many of these stocks are down more than 20-30% and, in fact, are trading at a decade-low P/E multiple. Therefore, while these uncertainties may be out there over the next few weeks or months, the stocks are expected to move higher after that. If we look back at some other stocks with tariffs, many are obviously higher off the bottoms. They have thus fallen to an attractive valuation, which is why there might be an opportunity to buy them. READ ALSO: Recession Resistant Investing: 10 Best Grocery Stocks To Buy Now and 11 Most Promising Future Stocks According to Hedge Funds. Shedding light on the most favored nation policy, Yee said it is not new. It is also not a new concept that the US, on average, pays around 40% to 50% more for drugs as compared to the basket of other, say, five to ten major developed nations. The country also gets its drugs faster, and is the home of innovation. Many of the pharmaceutical company executives over the past few weeks pointed out that most of those countries are also facing downside issues because of R&D investments, getting the drugs years later, and obviously, the countries aren't benefiting from access to any of these drugs. However, the United States government does negotiate 15-20 drugs per year and will be doing that for the next decade. We sifted through stock screeners, financial media reports, and ETFs to compile a list of 50 low-priced biotech stocks and then chose the top 10 with the highest number of hedge fund holders as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey's database. The list is ordered in ascending order of hedge fund sentiment. Note: The data was recorded on May 9. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (). A close-up of a scientist in a laboratory environment, working on a biopharmaceutical product candidate. Stock Price: $6.45 Number of Hedge Fund Holders: 36 Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) develops and commercializes targeted therapies for genetically defined cancers in patients of all ages. Its products include DAY101 and pimsertib. It is the eighth-best low-priced biotech stock to buy now. On May 7, analyst Andres Y. Maldonado from H.C. Wainwright reiterated a buy rating on the stock, keeping the price target at $36.00 and highlighting its promising trajectory. The analyst reasoned that the company's OJEMDA product, which treats certain kinds of brain tumors, showed consistent growth, attaining considerable sequential revenue growth and a notable increase in cumulative prescriptions. Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) is also advancing its pipeline through the FIREFLY-2 trial, which, according to the analyst, has the potential to bolster OJEMDA's market position. The company has a robust strategy for long-term growth, which includes the promising early-stage development of its anti-PTK7 ADC and a focus on overcoming physician conservatism in pediatric oncology. Overall, DAWN ranks 8th on our list of the best low priced biotech stocks to buy now. While we acknowledge the potential for DAWN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DAWN but trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Why Geron Corporation (GERN) Is The Best Low Priced Biotech Stock to Buy Now
We recently published a list of . In this article, we are going to take a look at where Geron Corporation (NASDAQ:GERN) stands against other best low priced biotech stocks to buy now. On May 8, Michael Yee, Senior Biotech Analyst at Jefferies, appeared on CNBC to discuss how tariffs and policy risks are pressuring the biotech industry, while simultaneously iterating that low valuations in the sector may present buying opportunities once the uncertainty clears. Talking about the broader impact of tariffs on the biotech sector, he said that the estimated tariff rate would be around 50%, while the negative EPS impact would be around -4-5%. According to Yee, the sector is facing several challenges that have caused significant pressure and anxiety among biotech investors. One of them is definitely sector-specific tariffs. The 50% estimation is a manageable impact for many of the biotech companies, but there are also other challenges being floated. Another factor is the most favored nations that could drop drug prices by as much as 40% to 50%, making it a related impact. Assuming all these impacts are going into place, there are definitely uncertain downside risks to the model. However, the takeaway is that many of these stocks are down more than 20-30% and, in fact, are trading at a decade-low P/E multiple. Therefore, while these uncertainties may be out there over the next few weeks or months, the stocks are expected to move higher after that. If we look back at some other stocks with tariffs, many are obviously higher off the bottoms. They have thus fallen to an attractive valuation, which is why there might be an opportunity to buy them. READ ALSO: Recession Resistant Investing: 10 Best Grocery Stocks To Buy Now and 11 Most Promising Future Stocks According to Hedge Funds. Shedding light on the most favored nation policy, Yee said it is not new. It is also not a new concept that the US, on average, pays around 40% to 50% more for drugs as compared to the basket of other, say, five to ten major developed nations. The country also gets its drugs faster, and is the home of innovation. Many of the pharmaceutical company executives over the past few weeks pointed out that most of those countries are also facing downside issues because of R&D investments, getting the drugs years later, and obviously, the countries aren't benefiting from access to any of these drugs. However, the United States government does negotiate 15-20 drugs per year and will be doing that for the next decade. We sifted through stock screeners, financial media reports, and ETFs to compile a list of 50 low-priced biotech stocks and then chose the top 10 with the highest number of hedge fund holders as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey's database. The list is ordered in ascending order of hedge fund sentiment. Note: The data was recorded on May 9. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (). A close-up of a laboratory technician in a laboratory, measuring a newly developed biopharmaceutical drug. Stock Price: $1.18 Number of Hedge Fund Holders: 46 Geron Corporation (NASDAQ:GERN) is a biotechnology company that develops Imetelstat, a telomerase inhibitor in hematologic myeloid malignancies. It focuses on oncology-focused therapeutic products. On May 7, Gil Blum, an analyst from Needham, maintained a Buy rating on Geron Corporation (NASDAQ:GERN) with an unchanged price target of $5.00. While the company's Rytelo sales underwent a drop, the analyst highlighted positive indicators, such as improved utilization in earlier treatment lines and rising patient demand. These trends point to a potential sales performance improvement in H2 2025. Geron Corporation (NASDAQ:GERN) is also expanding its commercial team by around 20% as a strategic step to increase product awareness. The analyst expects this move to positively affect sales later in 2025. In addition, the company has a strong financial position, ending fiscal Q1 2025 with $458 million and maintaining its operational expenditure guidance for the year. Overall, GERN ranks 1st on our list of the best low priced biotech stocks to buy now. While we acknowledge the potential for GERN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GERN but trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
