Are These The Best Biotech Stocks To Watch This Week?
Looking for top biotech stocks to watch this week? You are not alone. Biotech stocks have been a trending topic to watch in the stock market today. With the third wave of coronavirus cases officially worse than the first two, the need for a safe and effective vaccine is becoming more pressing than ever. With many of the biotechnology companies reporting this week, investors are not only looking at the financial performance of these biotech stocks this time around. Rather, a lot of attention will be given to the clinical trial data of the coronavirus vaccine candidate jointly developed by Pfizer (PFE Stock Report) and BioNTech (BNTX Stock Report).
There have been a lot of things going on with the industry lately. With Gilead’s (GILD Stock Report) recent approval for coronavirus treatment as one of the main highlights in tackling the coronavirus pandemic. It’s the first COVID-19 treatment to receive FDA approval during the pandemic. While this may be huge for GILD stock investors, investors may have already factored in this news earlier this year. That means there may not be as much upside as some may have hoped for.
“The balance of the data shows that it is providing a benefit…We have to be comfortable with singles and doubles when it comes to developing drugs against COVID right now. We rushed a lot of medicines into clinical development, not necessarily optimizing them. This is sort of the first generation of medicines. Nothing, probably, is going to be a home run.”- Dr. Scott Gottlieb, a former FDA commissioner
As the world races for a safe and effective COVID-19 vaccine, there have been numerous breakouts in the biotech space. That’s when they have reported strong data from clinical trials. But bear in mind numerous setbacks could happen at any stage of the clinical trials, even at the final stage.
With thousands of people enrolled in coronavirus clinical trials, there’s a great chance that one of the many participants would fall sick for reasons unrelated to the vaccination. Of course, to prove that it is totally unrelated could be challenging. And the company could only rule out this possibility by testing the vaccine on more patients. If the adverse event happens in only one out of 50,000 participants, it might not be an issue. But no one knows for sure. Granted, this is only my opinion. Nevertheless, there are a few biotech stocks that stand out in the stock market today. And that could be because of their unique value proposition. If you have read this far, perhaps you’re interested in the biotech space. If so, do you have this list of top biotech stocks to watch right now?
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Top Biotech Stocks To Watch Ahead Of Earnings: Moderna Inc.
Moderna Inc. (MRNA Stock Report) has been one of the best biotech stocks to watch this year after the company’s shares have skyrocketed more than 260% year-to-date. Most of the gain came after Moderna announced it was developing a coronavirus vaccine candidate, mRNA-1273. The company has racked up nearly $2.5 billion from the U.S. government to supply millions of doses of vaccine, should it be proven to be safe and effective. It could submit for FDA Emergency Use Authorization (EUA) by late November. In addition to that, Moderna has also secured a supply deal with Canada and is in discussions about an agreement with the European Commission.
Assuming things go according to plan, Moderna will have an instant blockbuster product on its hands. But the bigger story for the company lies in the rest of its pipeline. You see, Moderna’s vaccine candidate uses an approach where messenger RNA (mRNA) is modified to create a protein similar to the spike protein on SARS-CoV-2, the virus responsible for COVID-19.
If it works, the mRNA approach used for one disease could be used to treat hundreds and even thousands of diseases. And when that happens, Moderna will most likely be on every investor’s list of top biotech stocks to buy.
Top Biotech Stocks To Watch Ahead Of Earnings: Johnson & Johnson
The Johnson & Johnson (JNJ Stock Report) coronavirus vaccine trial paused earlier this month due to an unexplained illness in a participant. The trial, however, is preparing to restart after the participant’s illness did not appear to be related to the vaccine. Instead, the man suffered a stroke which may have been because of an infection. There is no evidence that the vaccine caused the event.
“With the information which we gathered to date and the information from external experts, the company found no evidence the vaccine candidate caused it,” Paul Stoffels, chief scientific officer of Johnson & Johnson
This stock is also worth paying attention to for its attractive dividends. J&J pays out a lucrative quarterly dividend of $1.01, translating to a 2.73% yield. In April, the company declared a 6.3% increase in the quarterly dividend rate. This along with the CEO highlighting the company’s strong financial position sets the stage for J&J’s future. As this company resumes the phase 3 clinical trials, will you be putting your money on JNJ to bet on a successful vaccine ahead of its earnings?
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Top Biotech Stocks To Watch Ahead Of Earnings: Novavax
Novavax (NVAX Stock Report) were sliding around 14% for the past week. The decline appears to be related to the lowering of the price target by B. Riley Securities analyst Mayank Mamtani for the stock from $257 to $223. Another possible reason is that President Trump did not mention Novavax during the presidential debate on Thursday when he was talking about companies leading the coronavirus vaccine race. Perhaps investors felt the cold shoulder.
So, what should investors’ response be to NVAX stock weakness lately? Possibly nothing, because nothing has fundamentally changed for the company. Existing investors might want to see Novavax ultimately get FDA approval for its coronavirus vaccine candidate, which could potentially send the company’s stock price over the roof once again.
But that’s not all there is. The company’s NanoFlu vaccine candidate for seasonal influenza is worth the attention as well, which could prove to be very lucrative in the long run. The company believes that its flu vaccine could be a game-changer because it is able to provoke a stronger antibody response for the seasonal flu. With that in mind, could NVAX stocks present an opportunity for investors to make huge gains?