Top Biotech Stocks To Buy [Or Sell] In September 2020
Biotech stocks have been among the typical investments for investors looking for strong growth prospects. The biotech industry is part of the broader healthcare sector. Not only does it create opportunities for long-term investors, but it also develops drugs that could improve the quality of life for many patients. These products must go through a rigorous, costly, and time-consuming testing process before potentially obtaining approval from the FDA. This means that investors may wait for years before they know their investments will pay off.
Certainly, the COVID-19 pandemic has drawn even more attention to the space. This is especially true for companies developing vaccines and drugs for the novel coronavirus. It’s only a matter of time before we have a list of successful vaccine developers. As other vaccine manufacturers like Pfizer (PFE Stock Report) appear to be leading the race, it is not surprising that shares of Moderna (MRNA Stock Report) and Novavax (NVAX Stock Report) have shown weaknesses in recent weeks. But what if you are getting tired of the vaccine race? In that case, we can focus on drugs that aim to cure other deadly diseases such as cancer. If so, are these top biotech stocks on your watchlist today?
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Top Biotech Stocks To Watch In September 2020: Immunomedics Inc.
Shares of Immunomedics (IMMU Stock Report) have doubled overnight. This comes after Gilead Sciences (GILD Stock Report) announced that it will acquire the biotech company in a $88 per share. The deal will involve about $15 billion in cash and $6 billion in newly issued debt.
This allows Gilead to expand its cancer treatment offerings. The access to Trodelvy, an FDA-approved treatment for metastatic triple-negative breast cancer, Gilead now has a stronger oncology portfolio.
“Trodelvy is an approved, transformational medicine for a form of cancer that is particularly challenging to treat. We will now continue to explore its potential to treat many other types of cancer, both as a monotherapy and in combination with other treatments.” Daniel O’ Day, Gilead’s Chief Executive Officer.
Top Biotech Stocks To Watch In September 2020: Crispr Therapeutics
Gene-editing company CRISPR Therapeutics (CRSP Stock Report) is one of the top biotech stocks to watch this year. The company started gaining attention after it released new and highly positive data from two small clinical trials of its CTX001 gene-editing therapy for beta-thalassemia and sickle cell disease earlier this year.
The company’s strategic partnership with Vertex Pharmaceuticals (VRTX Stock Report) also provides a competitive edge compared to its rivals.
The rapid pace of progress in gene editing is exciting. That’s because it holds promise for finding cures for some of the most severe disorders. There hasn’t been any specific news that could bring CRSP stock down. All told, it simply looks like CRSP stock got caught up in a wave of selling that hit the market. The market sell-off last week pushed the company’s stock to a 2 month low. Now that the company seems to be rebounding as we start the week, should investors buy CRSP stock now?
Top Biotech Stocks To Watch In September 2020: AstraZeneca
AstraZeneca (AZN Stock Report) has been a top biotech stock to buy since it went public 27 years ago. The British drugmaker’s share price has been rising consistently for the past few decades. While the recent rally could simply be due to their leading coronavirus candidate, investors should not forget that it has already a huge pipeline of drugs that could do just as well without the coronavirus vaccine.
It was one of the first to commence a Phase 2/3 clinical trial for its vaccine candidate in May. AstraZeneca has also entered into deals with the US and EU governments to supply millions of doses of its vaccine if it is approved.
For high risk, high reward investors, you might want to consider pure-play coronavirus stocks like Moderna and Novavax. On the flip side, if you have a lower risk appetite, buying shares in established businesses like AstraZeneca could be a smart choice. It offers an upside given its vaccine candidate, but at the same time has a large portfolio of other drugs to fall back on if the vaccine doesn’t work out.