Do You Have These 3 Top Biotech Stocks On Your Holiday Watchlist?
Biotech stocks are hot on investors’ radars right now. This is no surprise as top biotech stocks have shown incredible innovation in 2020 alone. With the advent of the coronavirus pandemic, biotech companies moved at an unprecedented speed to create a vaccine. A process that normally takes 10 years to complete, has been done in less than a year. Yesterday, the U.S. Food and Drug Administration (FDA) has just noted that Moderna’s (MRNA Stock Report) is highly effective. This sets the stage for an emergency authorization use later this week. The findings from Moderna’s clinical study will go before an independent advisory panel that will vote this Thursday on whether to recommend FDA authorization.
With so many biotech companies in the stock market today, it does become hard for investors to distinguish which biotech stocks are worth betting on. Today, there are over hundreds of publicly traded biotech stocks in the stock market. This explains why there are so many new innovative treatments and drugs that would not have existed a mere 30 years ago. How can investors distinguish which are the top biotech stocks to buy today? One shining example is Vertex Pharmaceuticals (VRTX Stock Report) that has managed to develop the only four drugs globally that target the gene mutations behind cystic fibrosis. The treatment is life-changing for the 70,000 people worldwide that suffer from this disease. These are truly exciting times for the industry. Even in a post-vaccine world, there are so many fields of biotechnology that have made impressive strides. With that in mind, here are the top biotech stocks to watch in December.
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Best Biotech Stocks To Buy [Or Sell] In December: Pfizer Inc
Pfizer (PFE Stock Report) is a biotech giant that has gained worldwide attention in recent months. The company was the first coronavirus vaccine company to have its vaccine candidate approved by the FDA for emergency authorization use last week. Pfizer has collaborated with German company BioNTech (BNTX Stock Report) to develop this vaccine. With over 17 million people infected and over 300,000 dead in the U.S., having a vaccine is certainly uplifting news for the country. The company’s share price is up by 10% since early November and traded at $37.84 a share at 4:00 p.m. ET.
The company is one of the largest pharmaceutical companies in the world, with many different medicines and vaccines in its portfolio. It also covers a wide range of medical disciplines. In the company’s latest quarter posting in October, it reported a revenue of $12.13 billion. The company also reported an adjusted income of $4.071 billion, which is a 3% decrease to a year earlier. Despite the decline in income, the company will be the first major player to enter the coronavirus vaccine market. The market is estimated to be worth $10 billion a year, so Pfizer certainly gets to benefit by being ahead of its competitors. Pfizer’s vaccine will cost $39 per dose.
The company has 92 drugs and treatments in its pipelines. These drugs are in many therapeutic areas including Oncology, Inflammation & Immunology, Vaccines, Internal Medicine, and Rare Diseases. With such an impressive line-up, things do look promising for the company. The question is, will this be enough for investors to have PFE stocks on their watchlist?
Best Biotech Stocks To Buy [Or Sell] In December: Novavax Inc.
Novavax (NVAX Stock Report) is another vaccine company that is still undergoing clinical trials. The reality is that even if the company is not the first to have its vaccine candidate approved, Novavax still has a lot to gain. This is because providing enough doses of vaccines for a population of over 7 billion is no easy task. With the coronavirus potentially being more like the seasonal flu, there is a real possibility that yearly vaccination is required to beat this pandemic. You could say that Novavax is playing the long game. The company’s shares are up by more than a whopping 2,400% this year.
If everything goes according to plan, Novavax could have its vaccine approved in multiple countries by early 2021. The company is one of the few that is part of Operation Warp Speed (OWS) in collaboration with the U.S. government. OWS will facilitate and accelerate the development, manufacturing, and distribution of the vaccine. In July, OWS provided $1.6 billion in funding for Novavax.
The company also has another vaccine that is currently pending for regulatory approval. Its NanoFlu vaccine for seasonal influenza has proven to be more effective than Fluzone, the current leading product in the market. Once NanoFlu is approved by regulators, it will be the company’s first source of recurring revenue. With the developments during 2020, could 2021 be the year where Novavax reap the fruits of its labor? Would you consider buying NVAX stocks for these very reasons?
Best Biotech Stocks To Buy [Or Sell] In December: Eli Lilly and Company
Eli Lilly and Company (LLY Stock Report) has had an interesting year so far. This biotech stock is currently up by 16% in December alone and closed Wednesday’s trading session at $172.05. The company’s products are sold in approximately 125 countries. Among the notable achievements from the company include being the first company to mass-produce the polio vaccine and insulin.
The company reported its third-quarter financial results in October. In it, Lilly posted revenue of $5.74 billion, which was a 5% increase year over year. This is an impressive feat as the world economy was severely affected by the pandemic. The company also reports earnings per share of $1.33. The biotech giant also expects full-year revenue of $24.2 billion to $24.7 billion. Ambitiously, Lilly also anticipates that it’s 2021 revenue will be between $26.5 billion to $28 billion.
The company has been doing well with its continuing sales growth. Its diabetes drugs Trulicity and Jardiance and cancer drugs Cyramza are enjoying very high demands. Lilly also expects a revenue boost between $1 billion to $2 billion for its coronavirus therapies. The company also announced yesterday that it planned to acquire Prevail Therapeutics (PRVL Stock Report). With so many exciting developments surrounding the company, will this be a good time to buy LLY stock?