Do You Have These Top Biotech Stocks On Your End Of Year Watchlist?
Biotech stocks are at the center of attention this year in the stock market and will likely still be in 2021. This is because many of these biotech companies were trying to develop vaccines and treatments for the coronavirus pandemic. This has brought some of the highest returns to investors who betted on the top biotech stocks at the beginning of the year. As Pfizer’s (PFE Stock Report) vaccine is being rolled out this month, things, on one hand, look very promising.
On the other, a new strain of coronavirus in the U.K. has resulted in a tough lockdown in London and other parts of England. Wall Street could be facing its biggest decline in months as new lockdown orders in London and travel restrictions come into effect across Europe. How does this play out for the top biotech stocks to watch in the stock market? The valuations of these stocks could rise even further as the battle against the pandemic gets dragged into 2021.
The NASDAQ Biotechnology Index which consists of biotechnology or pharmaceutical companies has been up by over 60% since the market crash in March. With so many biotech stocks to choose from, it can be hard to discern between the good and the bad. There have been a lot of things going on with the industry lately after all. With all that in mind, are these the best biotech stocks to buy in the stock market today?
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Best Biotech Stocks To Buy [Or Sell] Before 2021: AstraZeneca plc.
AstraZeneca (AZN Stock Report) is a multinational biotech company that is based in England. The company has a portfolio of products in major disease areas including cancer, cardiovascular, and inflammation to name a few. Of course, the company is one of the vaccine companies that have been in the limelight this year. AstraZeneca is currently nearing the end of its Phase 3 trial for its coronavirus vaccine. The company’s shares are traded at $49.68 per share as of Monday’s close.
How has the company been doing so far you may ask? Surprisingly well despite facing some obstacles in its vaccine development earlier this year. In its third-quarter financials posted last month, the company’s total revenue is up by 10% at $6.57 billion. This increase in revenue is from strong sales in new medicines (+36%) and Oncology (+24%). The company also reports earnings per share of $2.95, which is a 16% increase compared to a year earlier.
Recently, the company announced that it will be acquiring Alexion Pharmaceuticals (ALXN Stock Report) for a whopping $39 billion. This would be the largest biopharma acquisition of 2020. AstraZeneca will be adding rare disease and immunology assets to its already impressive repertoire. In the company’s pipeline, AstraZeneca boasts more than 170 projects covering many therapy areas. Also, the company’s interim analysis has shown that the vaccine is 70% effective in preventing the coronavirus. The company has already begun signing agreements with countries like Australia and Malaysia to distribute its vaccine once approved. This would certainly boost the company’s revenue in the year to come. With such developments surrounding the company, will it be enough for you to have AZN stock in your portfolio?
Best Biotech Stocks To Buy [Or Sell] Before 2021: Moderna
Moderna (MRNA Stock Report) is a biotech company that needs no introduction. Being at the forefront of the vaccine race, the company has certainly proved its worth recently by having the U.S. Food and Drug Administration (FDA) approve its vaccine candidate for emergency use authorization. The company has begun shipping its vaccine across the U.S. this week. The company’s shares are up by over 600% year-to-date.
The U.S government has ordered 200 million doses of vaccine to date with an option to purchase up to an additional 300 million doses from Moderna. Moderna also expects to deliver 20 million doses by the end of the month. Moderna is the second vaccine to be approved in the U.S. The company will stand to gain a lion’s share of the vaccine market in the U.S by being the second vaccine to be approved. The coronavirus vaccine market is worth $10 billion a year.
You would think that Moderna is focusing all of its resources on the coronavirus vaccine but it actually has many ongoing clinical trials in the pipeline. Utilizing its mRNA science, the company hopes to create a new generation of transformative medicines for patients. Given the rapid speed and success of creating a new vaccine in under a year with this technology, the possibilities are endless. Notable examples include the company’s cancer vaccines for solid tumors and melanoma. With so many promising treatments on the way, will you consider adding MRNA stock to your watchlist?
Best Biotech Stocks To Buy [Or Sell] Before 2021: Co-Diagnostics
Co-Diagnostics (CODX Stock Report) is a molecular diagnostics company based in Utah. The company was one of the first to develop an effective means of testing for the coronavirus. Despite suffering a drop in share price in August, the company’s shares are still up by over a staggering 1100% this year.
In the company’s third-quarter fiscal posted in November, Co-Diagnostics reported revenue of $21.8 million and a quarterly net income of $15.7 million. The company continues to enjoy widespread uptake of its coronavirus test domestically and abroad. This would lay the foundation for a strong future for the company. The company also expects to complete its design work and verification for its Logix Smart ABC (Influenza A/B, coronavirus). The test kit is an in vitro diagnostic test that allows for the detection of RNA from Influenza A, Influenza B, and coronavirus.
The company also has diagnostics for multiple diseases, including the Zika virus and tuberculosis bacteria. Impressively, the company has announced last week that it has sold over 10 million coronavirus tests. It also anticipates a significantly higher fourth-quarter revenue. Co-Diagnostics also announced last month that its joint venture with CoSara Diagnostic received clearance in India to market its Saragene coronavirus diagnostic test. Will these reasons be enough for you to buy CODX stock?