Looking For The Best Biotech Stocks To Buy? Here Are 3 For Your List.
2020 is no doubt the year of the biotech stocks. The reason being that biotech companies are at the center of the vaccine race for the coronavirus. These companies have been undergoing extensive clinical trials at unprecedented speed. Normally you would need about 10 years’ worth of painstaking research and development to get a vaccine to the market. However, with the coronavirus already infecting 54 million people worldwide and killing more than 1.3 million, there is an utmost urgency for the vaccine.
Vaccine race front runner Moderna (MRNA Stock Report) had just announced successful results today. In its interim analysis, the company states that its vaccine candidate for the coronavirus has an efficacy of 94.5%. This came a week after Pfizer’s vaccine candidate achieved an efficacy of 90%. These positive developments could suggest that we are a few steps closer to ending the pandemic. In Moderna’s phase 3 clinical trial involving 30,000 people in the U.S., half had been given two doses of its vaccine candidate while the rest had dummy injections. Only 5 individuals from the group receiving the vaccine contracted the virus, compared to 90 individuals in the group that didn’t receive the vaccine.
So how does this fare for other top biotech stocks in the vaccine race? For investors who are looking into the best biotech stocks to buy in the stock market today, there is still plenty of opportunities. As the coronavirus vaccine market is worth more than $10 billion a year, this is not a winner-takes-all market. Other companies will have their share of the market. As more biotech companies are set to present their crucial phase 3 clinical trials in the upcoming weeks, things are certainly getting exciting. With that in mind, here are the top 3 biotech stocks to watch.
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Best Biotech Stocks To Buy [Or Sell] Right Now: Pfizer Inc.
10 months into the pandemic, the first company to offer a glimpse of hope is Pfizer (PFE Stock Report). The biotech giant last week had announced that its coronavirus vaccine candidate has achieved success in preventing 90% of infections. The vaccine, in development with BioNTech (BNTX Stock Report), had shown promising results from its clinical trial involving over 43,000 individuals. The 90% efficacy is more than the 50% threshold set by the Food and Drug Administration (FDA) for approving a vaccine for emergency use.
Like Moderna, the company uses mRNA technology to develop its vaccine candidate. This new method differs from the traditional approach to vaccine development. Pfizer uses investigational vaccines that utilize mRNA to deliver instructions to create a protein from the virus. This then allows the immune system to create antibodies to combat the protein.
The company has had a 35% increase in share price since the March lows. In the company’s third-quarter fiscal posted in October, Pfizer had reported a revenue of $12.1 billion across all business segments. The bulk of the revenue came from its biopharma division which was up by 4% at $10.2 billion. The company plans to ship its vaccine candidate before Christmas this year and has made agreements with various countries. Pfizer plans to roll out its first doses within weeks once they receive emergency use permission from drug agencies. The company also expects to have 1.3 billion doses ready by next year. With that in mind, will you consider having PFE stock in your portfolio?
Best Biotech Stocks To Buy [Or Sell] Right Now: Novavax Inc.
Novavax (NVAX Stock Report) is another contender in the vaccine race. The company last week had received FDA fast-track authorization. This move would help speed up the development of the vaccine. However, Novavax’s vaccine candidate has delayed its U.S. trial to the end of November. The company cited delays in ramping up its vaccine’s manufacturing process.
The company is still up over 2000% year-to-date and is priced at $96.60 as of Friday’s closing. Novavax uses a tried and tested recombinant protein method to develop its vaccine. The Hepatitis B vaccine that is administered worldwide is created through this method. This would suggest that it is a safe bet for the company’s vaccine candidate. The company also received $1.6 billion in funding from the government through OWS in July. With that, Novavax had also signed an agreement with Serum Institute, the world’s largest producer of vaccines to produce 1 billion doses.
With backing from the U.S. government and by using a safer approach to vaccine development, Novavax certainly has the fundamentals to support its cause. The company is also working on a new flu vaccine called the NanoFlu. Nanoflu has produced antibody responses that are 24% to 66% higher than Sanofi’s (SNY Stock Report) Fluzone vaccine. This implies that NanoFlu will be better at treating the seasonal flu. With that in mind, could NVAX stock be worth buying for the long term?
Best Biotech Stocks To Buy [Or Sell] Right Now: Johnson & Johnson
Pharmaceutical titan Johnson & Johnson (JNJ Stock Report) is no stranger to the biotech industry. The company has enjoyed a 34% increase in stock price since the March lows. J&J is now undergoing its phase 3 trial, which started in September. The company states that its vaccine candidate is compatible with standard vaccine distribution channels and would not require new infrastructure to get it to people who need it.
The focus is now on the supply chain and logistics of a company as more companies reach the finish line in the vaccine race. J&J however, can boast a supply chain that is best in its field. This plays well for J&J as it prepares to distribute up to 1 billion doses of its vaccine candidate in 2021. The company runs its supply chain with cutting edge digital technology. This includes collaborative robots, self-driving vehicles, and augmented reality. The company states that it is on its way to reaching its 2021 goal thanks to a range of strategic manufacturing partnerships. Among the companies that have partnered with J&J for this endeavor are Emergent BioSolutions (EBS Stock Report) and Catalent (CTLT Stock Report).
The company has just posted its third-quarter results in October. J&J had reported sales of $2.1 billion reflecting a 1.7% increase year-over-year. The company had also reported earnings per share of $1.33, which is a staggering 101.5% increase from a year earlier. As J&J prepares for its vaccine distribution in 2021, will you consider adding JNJ stock to your watchlist?