Top 3 Convalescent Plasma Stocks To Watch Before September 2020
There’s no doubt biotech stocks have been grabbing headlines since the novel coronavirus outbreak this year. Specifically, top biotech stocks to buy this year such as Novavax (NVAX Stock Report) and Moderna (MRNA Stock Report) has gone from the brink of extinction to stardom this year. This is thanks to their COVID-19 programs. If you know this space, you would know that biotech space rallies mostly according to positive clinical trials or new government initiatives. And not so much to their quarterly reports. For instance, over the weekend, President Trump announced the emergency authorization of convalescent plasma for COVID-19.
“This is what I’ve been looking to do for a long time,” Trump told an unusually brief White House news conference. “Today I’m pleased to make a truly historic announcement in our battle against the China virus that will save countless lives.”- President Donald Trump
If you have missed this news over the weekend, let’s dive in to understand more. The U.S. FDA reported early evidence suggesting blood plasma can decrease mortality and improve the health of patients when administered in the first three days of their hospitalization. Former FDA chief, Dr. Scott Gotlieb recently commented, “I believe plasma is probably beneficial. It’s probably weakly beneficial in the setting of this treatment. But I think some people wanted to see more rigorous data to ground that decision.”
No matter how you slice it, convalescent plasma stocks are likely on investors’ plates as we start the last week of August. Be it risky, volatile, or speculative, these biotech stocks fit the mold. Hyped up stocks tend to see huge volatility when the government is involved. Operation Warp Speed boosted the top biotech stocks that are working on vaccines. Now that the government is pointing a new direction with the COVID-19 programme, are these the best biotech stocks to buy or sell this week?
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Top Convalescent Plasma Stocks To Watch This Week: ADMA Biologics Inc.
First, up the list, commercial-stage biotech company ADMA Biologics (ADMA Stock Report) hasn’t really been on investors’ radar this year. The stock has rebounded from the coronavirus induced market sell-off in March. But since then, ADMA stocks have been hovering around $3 for the past few months.
Though at the end of July, ADMA stock skyrocketed. That was following the Wall Street Journal coming out with a report that suggested potential opportunities for plasma collection companies. While ADMA stock soars vigorously, but the rallies were rather short-lived, which the shares came crashing down shortly after.
Late last week, most biotech stocks with strong ties to plasma technology took a hit. This came after the New York Times reported the FDA Emergency Use Authorization approval of blood plasma as a potential COVID-19 treatment was on hold. Considering the new initiative from the FDA, will this latest development be a catalyst for ADMA stock?
Top Convalescent Plasma Stocks To Watch This Week: Sonnet Biotherapeutics Inc.
Next up, Sonnet Biotherapeutics Holdings (SONN Stock Report) is also one of the under-the-radar biotech stocks in the market. As far as SONN stock is concerned, it hasn’t had a smashing year so far. But could it turn a new leaf amid recent development? Sonnet is an oncology-focused biotechnology company with a platform for innovating biologic drugs of single or bispecific action. Earlier on July 20, the company’s Fully Human Albumin Binding (FHAB) derived drug candidates all showed a statistically significant reduction in tumor growth compared to placebo.
The last we saw SONN stocks surging was in late July after the optimistic outlook of the company’s plasma technology. But SONN stock consolidated shortly after making one of the biggest jumps this year. Perhaps SONN stock is part of your quick flip biotech stocks this week.
If so, be sure to tread carefully knowing the historical trading pattern of the company. Of course, history is only our best guide when it comes to trading stocks for a quick flip. Will it show a consistent uptrend in the near to medium term? That will depend on how serious this initiative is and whether it is merely a politically driven move.
Top Convalescent Plasma Stocks To Watch This Week: T2 Biosystems Inc.
Last on the list, T2 Biosystems (TTOO Stock Report) is another biotech stock to watch this week. TTOO is also one of the speculative biotech stocks. But it is also a very risky investment. That’s because it has so far failed to commercialize its suite of FDA-approved testing devices.
But because of the recent touting of coronavirus plasma by President Trump, it has gotten folded into the mix of biotech stocks to watch that are associated with blood plasma technology.
Whether TTOO is poised for a huge growth runway depends on two things. The rapid COVID-19 tests need to be affordable from the hospital standpoint. This has to be true before the company could earn a solid return. In addition to that, whether the convalescent plasma will be able to add value to the company remains to be seen. If all goes well, it is not surprising we will see a breakout in TTOO stocks in the near to medium term.