Business & Investment

Cheap UK Stocks: 1 I’m Thinking Now

I’m always looking for cheap UK stocks to strengthen My portfolio..One strain I’m considering is Amryt Pharmaceuticals (LSE: AMYT).. Should I buy stock?

FTSE AIM pick

Amryt is a global biopharmacy company focused on the acquisition, development and commercialization of medicines and treatments for rare diseases. The focus is on addressing the rarest diseases in the growing areas of the pharmaceutical market, and Amrit is in a position to benefit from this growth in my opinion. The portfolio already has several approved treatments in the United States and Europe.

As I write, stocks are traded at 156p per share. Over the past six months, stock prices have fallen from a high of over 200p per share. This time last year, it was trading at 196p per share. This is equivalent to a 20% drop in stock prices. When a stock loses its value, I don’t think it’s automatically a problem. I see it as an opportunity to learn why and see if there is an opportunity to buy cheap UK stocks.

Amrit has a history of acquisitions. I like this characteristic of the stock I’m considering because it shows growth plans and ambitions. I think the acquisition of Agerion in September 2019 contributed to the decline in stock prices. Due diligence and overhangs to consolidate companies and stocks into one company can often have this impact. I believe Amrit’s share price will recover due to recently reported results and product pipelines.

Performance and latest acquisition

August was a busy month for Amrit.Announce positive Second quarter results Upgraded year-round guidance. In addition to this Completion of another merger The merger will allow Amryt to expand its reach and incorporate new products into its portfolio.

Amryt’s results show that second-quarter sales increased 35.9% year-on-year to $ 62.8 million. This was also the sixth consecutive quarter of interest, taxes, depreciation and profit before amortization (EBITDA). Cash income also increased to $ 142.9 million. Full-year revenue guidance has been raised from $ 210 million to $ 215 million. This, if achieved, represents 15% to 18% year-over-year growth.

From an operational point of view, it is one of the main products Amrit is looking forward to. Oleogel-S10, Priority review by the US Food and Drug Administration (FDA). This is seen as a big step forward. I believe the company’s strong performance, further mergers that only boost its offerings, and the priority screening of highly promising products will boost Amrit.

Cheap UK Stocks Are Risky

Amrit is at risk. First, all pharmaceutical companies face challenges when developing medicines. Often this is a long process and there are many challenges along the way. Costs are one of the biggest factors, and these can spike unexpectedly. In addition to this, getting approval can be successful or unsuccessful. In addition, there are usually competitors trying to make something similar. All of these aspects are real risks to Amrit’s potential and growth.

Overall, I think Amrit is a cheap and good UK stock that could be a good option for my portfolio. I like the work it does. Like a growth plan, the business is valuable and the business is doing well. I would like to add shares to my portfolio now.

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Jabran Khan does not have a position in any of the listed shares. The views expressed about the companies mentioned in this article are those of the author and may differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. Here at The Motley Fool, by examining different insights, Better investors than us.



Cheap UK Stocks: 1 I’m Thinking Now

https://www.fool.co.uk/investing/2021/09/10/cheap-uk-shares-1-i-am-considering-right-now/ Cheap UK Stocks: 1 I’m Thinking Now

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