Are These The Best Biotech Stocks To Buy Right Now?
In the stock market, many investors bank on the prospect of a company rather than what it currently has to offer. Biotech stocks would be a prime example for this investment approach. The industry includes companies that develop drugs and diagnostic technologies for the treatment of diseases. These products would often require rigorous and costly trials before potentially obtaining regulatory approvals. As such, some may find it puzzling that biotech companies can go public without much revenue if any at all.
Well, this is because there is still an abundance of unmet medical needs in the world today. Any new medical breakthrough will likely change the fortune of the company. Hence, it should not come as a surprise that biotech companies would continue to invest in research to improve the chance of producing successful products. For instance, Beigene (NASDAQ: BGNE) recently announced the groundbreaking of its flagship U.S. manufacturing and clinical R&D center in New Jersey. The company believes that this is an excellent location for a thriving life science community, with a deep talent pool that will contribute to its pipeline of innovative cancer medicines.
Elsewhere, Johnson & Johnson (NYSE: JNJ) also unveiled its J&J Satellite Center for Global Health Discovery in Cape Town, South Africa. This marks the company’s latest expansion in research collaborations between leading research institutions around the world. In conclusion, the biotech sector is full of high-risk but high-return prospects. Thus, investors should take stock of their risk appetite before diving into the sector. With that in mind, here are some of the top biotech stocks to check out in the stock market now.
Biotech Stocks To Watch In May 2022
- Incyte Corporation (NASDAQ: INCY)
- Novo Nordisk A/S (NYSE: NVO)
- Seagen Inc (NASDAQ: SGEN)
Incyte Corporation is a biopharmaceutical company that focuses on the discovery, development, and commercialization of therapeutics. The company has a portfolio of drugs targeting a variety of liquid and solid tumors, as well as dermatologic conditions. INCY stock has been trading sideways since the start of the year. However, several recent positive developments may be sparking the interest of investors.
For starters, the company and Maruho Co announced last week that they have entered into a Strategic Alliance Agreement. Under which, Maruho will make an upfront payment to Incyte for the development, and commercialization of ruxolitinib cream in Japan. The cream is a novel formulation of Incyte’s selective JAK2 inhibitor ruxolitinib for the treatment of autoimmune and inflammatory dermatological diseases. Now, judging by the cream’s effectiveness in the U.S. for the treatment of atopic dermatitis, investors appear to be optimistic that this new collaboration will be a success.
Furthermore, the European Medicine Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) also issued a positive opinion regarding the company’s capmatinib (Tabrecta). The CHMP recommends granting marketing authorization for the drug to be used as a monotherapy for the treatment of adults with METex14 advanced non-small cell lung cancer. All things considered, would you consider adding INCY stock to your watchlist?
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Following that, we have a global health care company that primarily engages in diabetes care, Novo Nordisk. The company also dwells in the discovery, development, manufacturing, and marketing of pharmaceutical products. Novo’s diabetes and obesity care segment covers insulin, GLP-1, other protein-related products, such as glucagon, protein-related delivery systems and needles, and oral anti-diabetic drugs. Impressively, NVO stock has climbed more than 50% over the past year.
Last week, the company announced headline results from its ONWARDS 2 trial. The trial is a 26-week efficacy and safety treat-to-target trial investigating once-weekly insulin icodec versus insulin degludec in patients with type 2 diabetes switching from daily insulin. It appears that the once-weekly insulin icodec is superior in reducing the HbA1c levels as compared to insulin degludec. Overall, this should not come as a surprise as the company has a strong record of over a century in developing insulin treatments.
On top of that, Novo Nordisk also announced its financial results for its first quarter of 2022. The company’s net sales stood out at $5.95 billion, up 24% year-over-year. Out of which, obesity care sales improved by 119%, driven by Wegovy’s sales of $198 million. Meanwhile, its operating profit came in at $2.7 billion, representing an increase of 28% year-over-year. Now, all this sales momentum has allowed Novo to raise its outlook for the full year. With that said, would you still consider NVO stock as a top biotech stock to watch?
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To sum up the list, we will be looking at another top biotech company, Seagen. For those unaware, this is a company that develops and commercializes targeted therapies for the treatment of cancer. Some of its notable programs include ADCETRIS and PADCEV which are based on its antibody-drug conjugate (ADC), technology that utilizes the targeting ability of monoclonal antibodies to deliver cell-killing agents directly to cancer cells. For most parts, oncology is still deemed as an unmet medical need. Hence, investors eyeing the sector may often have SGEN stock on their radars.
In April, the company announced plans to build a new facility in Everett, Washington. As it stands, the company expects the 270,000-square-foot facility to be operational by 2024. Thus, expanding the company’s biomanufacturing capacity while providing greater control and flexibility over its production of medicines. Seagen also believes that it will put the company in a favorable position to attract top-flight talents to drive its business priorities.
Not to mention, Seagen also recently announced its first-quarter financials and provided updates on its diverse oncology pipelines. Its net product sales increased to $383 million, representing an increase of 27% compared to the prior year’s quarter. This reflects the overall growth across its portfolio of approved products. Additionally, the European Commission also approved PADCEV for previously treated metastatic urothelial cancer last month. All in all, there are many reasons for optimism around Seagen right now. If you share the sentiment, would you bank on the future of SGEN stock?
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