Will These Biotech Stocks Be Worth The Investment?
As the coronavirus pandemic continues to spread worldwide, all eyes are on the top biotech stocks in the market. Investors seeking to outperform the market might want to take a look at top biotech stocks to watch. Everyday investors wake up with the hope that a vaccine has been found. We all are because we know that such news would most importantly shore up the stock market. Since the outbreak began in Wuhan last December, many biotech companies have been trying to develop a safe and effective vaccine targeting COVID-19.
The U.S. government created the Operation Warp Speed (OWS) with the aim to deliver 300 million doses of effective vaccine by January 2021. A few large pharmaceutical companies have been included in the list. The latest agreement was between U.S. and Sanofi (SNY Stock Report) & GlaxoSmithKline (GSK Stock Report). Under the $2.1 billion deal, Sanofi and GSK have to develop and potentially deliver 100 million doses of vaccines if proven safe and effective. Before this, it was Pfizer’s (PFE Stock Report) and BioNTech’s $1.95 billion deal with the government. It certainly appears that big pharma and biotech companies do not want to miss out on the vaccine race.
The pandemic has led many investors to look for biotech stocks that are focusing on vaccines. Many traders invested in these coronavirus stocks and made some profit. However, some investors may have a lower risk appetite. There are also other biotech investment opportunities that may not have breakouts overnight but would likely bear fruit in the long term. Having said that, could these two biotech stocks be worth adding to your long term portfolio?
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Top Biotech Stocks To Watch This Week: Novavax Inc.
It’s hard to believe that Novavax (NVAX Stock Report) was a small-cap stock at the beginning of the year, a biotech stock that trades under $5. Among the small-cap biotech stocks this year, NVAX surprised many of its investors and came out as a legitimate contender in the coronavirus vaccine race. The company pretty much came to the fore on July 7. That’s when the company was included in the Operation Warp Speed with a $1.6 billion funding from the U.S. government.
So, why is NVAX stock a top biotech stock to watch this week? That is because it plans to announce the results from phase 1 portion of a phase 1/2 clinical study of NVX-CoV2373. Assuming positive results, the phase 2 part of the could begin soon after the announcement. As for the final phase, the company hopes to begin in the fall of 2020 should all things go smoothly. It seems that another positive clinical data would send NVAX stock higher again.
On the flip side, any disappointment from the clinical trials could also send NVAX stock on a free fall. Clearly, after such massive breakouts, this biotech stock is more suitable for those who don’t mind the risk and are willing to buy high to sell higher.
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Top Biotech Stocks To Watch This Week: Sinopharm
There are only a handful of late-stage vaccine candidates in the market, five to be exact. And among the five, two of the vaccine candidates belong to Chinese drugmaker Sinopharm (SHTDY Stock Report). The company reported preliminary results in June from earlier clinical studies. Sinopharm stated that all participants in the phase 1/2 studies for its two late-stage vaccine candidates had neutralizing antibodies. Like other late-stage vaccine makers, Sinopharm also indicated that its vaccine didn’t cause severe side effects.
For sure, being the first to reach the finish line helps. But that’s not all. Investors also have to take into account the manufacturing capacity of each vaccine maker. In Sinopharm’s case, since the company is owned by the Chinese government, there’s really not much limitation as long as the vaccine is proven safe and effective in late stage studies. As of now, the company has the capability to produce 200 million doses of COVID-19 vaccines with its manufacturing facilities in Beijing and Wuhan.
Unlike the top biotech stock companies under the Operation Warp Speed Program, SHTDY stock is relatively less volatile. It has been trading in the $10-13 range for the past few months. Should Sinopharm indeed be the first to successfully develop a vaccine, can we expect a major breakout in its stock price? You be the judge.