3 Top Biotech Stocks To Watch Before October
The coronavirus pandemic has opened a whole new opportunity for biotech stocks. There’s increasing optimism that a coronavirus vaccine could be available by the end of 2020 or the beginning of the year 2021. This in effect led investors to look for the best biotech stocks to buy. And they want to buy before the biotech companies successfully produce a safe and effective vaccine. While researchers and physicians have learned a lot about COVID-19, there seems to be no end in sight to the ongoing pandemic.
Focus On Late-Stage Clinical Studies For Top Biotech Stocks To Buy
With more than 200,000 people dead from COVID-19, the need for a safe and effective vaccine couldn’t be more pronounced. With the addition of Johnson & Johnson (JNJ Stock Report) and Novavax (NVAX Stock Report) into Phase 3 trials, the race for the first COVID-19 vaccine has intensified. But before we dive into biotech stocks to buy, we have to first understand our risk tolerance.
We all want to generate as high returns as possible. But to achieve that, investors must accept a higher level of risk. And that’s especially true for small biotechs with no other approved products on the market. Any setback can cause these biotech stocks to plunge. However, if one’s risk tolerance is lower, buying shares of top pharmaceutical stocks could be a better fit. Assuming you have determined your risk tolerance, which of these biotech stocks suits your taste?
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Top Biotech Stocks To Buy [Or Sell] Right Now: Pfizer
First, on the list Pfizer (PFE Stock Report) has been getting a lot of attention in recent months. This is thanks to its potential coronavirus vaccine from the partnership with BioNTech (BNTX Stock Report), on top of its massive pipeline of drugs.
The partnership revealed that their leading coronavirus vaccine candidate, BNT162b2, is on track to be first to find out if its COVID-19 vaccine works by the end of October. The partnership appears to be the first among the contenders in the vaccine race.
If the vaccine wins the approval of regulators, Pfizer and BioNTech have said that they could supply up to 100 million doses by the end of this year. That’s enough to vaccinate 50 million people. In the following year, the duo could supply another 1.3 billion doses of the vaccine. Should all go well as planned, PFE stock would receive another boost in their stock price. On the flip side, in the event where the vaccine fails to produce strong data, it probably wouldn’t result in free falling of PFE stock. With this in mind, would you buy PFE stock today?
Top Biotech Stocks To Buy [Or Sell] Right Now: Moderna
Next up, Moderna (MRNA Stock Report) started gaining attention beginning this year. That’s after it launched a new effort aiming to produce the novel coronavirus vaccine. Amongst other vaccine makers, Moderna has a big head start in terms of clinical progress.
On top of that, Moderna claims quite a broad pipeline. In its pipeline, the biotech company has three candidates in phase 2 testing. It has the cytomegalovirus (CMV) vaccine mRNA-1647, the personalized cancer vaccine mRNA-4157 in partnership with Merck (MRK Stock Report), and AZD8601, a therapy targeting coronary artery disease, in partnership with AstraZeneca (AZN Stock Report).
Should its coronavirus vaccine candidate fail to meet the demand of regulators for approval, MRNA stock might take a short hit. But the long term potential from its collaboration with major pharmaceuticals could still hold promise.
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Top Biotech Stocks To Buy [Or Sell] Right Now: Exact Sciences
Exact Sciences (EXAS Stock Report) has nothing to do with coronavirus vaccines or treatments. But its recent breakout is worth the attention. Shares of Exact Sciences skyrocketed 26.85% as of Thursday’s closing bell. This came after the company’s CEO, Kevin Conroy declared its intent to be a major liquid biopsy company at the Cowen Liquid Biopsy Summit.
Liquid biopsies are blood tests that determine if a person has a disease like cancer. Investors cheered the company’s liquid biopsy data. From what it is presented from the summit, the test achieved 86% overall sensitivity and 95% specificity in detecting various types of cancer. Among the tests, ovarian and pancreatic cancer have shown higher accuracy thus far.
While this is certainly a promising development, the company currently relies mainly on Cologuard, a test for colon cancer, and Oncotype DX, tests that predict cancer recurrence. Should its liquid biopsy developments be able to translate into commercial success, there could be further upside to the stock. However, for the time being, Exact Sciences may need to show better results in the coming quarterly report to maintain investors’ interest.
