Looking For The Best Biotech Stocks To Buy Before December? 3 Names For Your List.
Biotech stocks have been trending in the stock market this year. This is expected as biotech companies are at the forefront of fighting the coronavirus pandemic. These companies are in the last leg of the COVID-19 vaccine race and the world is hopeful for a cure. Earlier this month, Pfizer (PFE Stock Report) and Moderna (MRNA Stock Report) announced positive vaccine results. Both companies’ vaccine candidates have reported efficacy of about 95%. This is impressive as these top biotech stocks developed it in less than a year. Vaccines would normally take approximately 10 years to develop. With the urgency for a vaccine being very real, it’s no surprise that these biotech stocks are winners today.
The pandemic that has ravaged the globe in 2020 could finally be beaten. Today, a third biotech company has gotten within reach of the finish line in the vaccine race as well. AstraZeneca (AZN Stock Report) in partnership with the University of Oxford has just announced its coronavirus vaccine preliminary results today. Although the efficacy is around 70%, this is still above the U.S. Food And Drug Administration (FDA) requirement of 50% efficacy to qualify for emergency use authorization. The company will also prepare to file its data to regulators around the world that have a framework for conditional approval.
You can see why some of the best biotech stocks are so highly sought after by investors. These stocks could have the potential to bring substantial gains overnight. With every promising clinical result, these stocks will skyrocket. Of course, if the results are not so successful, these biotech stocks could also plummet. Moderna for instance has seen a 45% increase in share price since the start of November. With all things considered, here are the top 3 biotech stocks in the stock market today.
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Best Biotech Stocks To Buy [Or Sell]: Arrowhead Pharmaceuticals
Arrowhead Pharmaceuticals (ARWR Stock Report) develops medicines that treat intractable diseases, which are diseases that have unidentifiable causes. It does so by silencing the genes that cause them. Arrowhead’s therapies trigger the RNA interference mechanism to induce rapid knockdown of the targeted genes. The company’s share is up by 230% since the March lows and is traded at $67.93 as of 9:51 a.m. ET.
The company has many programs in its pipeline. Most notable are its ARO-AAT drug which treats Alpha-1 Liver Disease and ARO-ENaC which treats cystic fibrosis. These drugs are already in Phase 1 and 2 clinical trials, respectively. If proven successful, these once untreatable diseases could be a thing of the past. In total, Arrowhead has 13 drugs in its pipeline and will plan to license its drugs to companies like Amgen (AMGN Stock Report). The company is set to release its fourth-quarter financial results today.
The company in its third-quarter fiscal in August posted revenue of $27.3 million. Arrowhead had also posted a cash balance of $219 million. The company has announced a collaboration with Takeda Pharmaceutical in October to develop a drug for the treatment of a rare inherited disorder that leads to lung disease and cirrhosis. Arrowhead will receive $300 million upfront with subsequent payments totaling up to $740 million. With such an exciting development surrounding Arrowhead, will you consider adding ARWR stock to your portfolio?
Best Biotech Stocks To Buy [Or Sell]: Bristol Myers Squibb
Bristol Myers Squibb (BMY Stock Report) is a pharmaceutical giant based in New York City. The biotech company manufactures prescription pharmaceuticals and biologics in several therapeutic areas. The company today announced a discovery collaboration with Schrödinger (SDGR Stock Report) to develop and commercialize therapeutics in multiple disease areas. This multi-year collaboration will target oncology, immunology, and neurological disorders. Bristol Myers Squibb will pay Schrödinger $55 million upfront and Schrödinger will be eligible to receive up to $2.7 billion in milestone payments plus royalty.
The company’s stock price is up by 32% since the March lows. Bristol Myers Squibb has also just reported its third-quarter fiscal earlier this month. The drugmaker had posted a revenue of $10.5 billion in this latest quarter. This represents an impressive 75% increase in revenue year-over-year. Its U.S. revenues alone had increased by 88% to $6.4 billion. Bristol Myers Squibb also reported an 81% increase in research and development expenses to $2.5 billion. This is primarily due to the costs associated with the broader portfolio resulting from the Celgene acquisition. This increase in R&D would no doubt fuel the company’s growth in the years to come.
In its pipeline, Bristol Myers Squibb boasts over 50 compounds in development and has studied in over 40 disease areas. Notably, its Opdivo drug in combination with Cabometyx for patients with advanced renal cell carcinoma (RCC) was granted Priority Review by the FDA. With that being said, will BMY stock be a top biotech stock for you to watch?
Best Biotech Stocks To Buy [Or Sell]: Novavax Inc.
Novavax (NVAX Stock Report) is still in its Phase 3 clinical trials for its coronavirus vaccine candidate. Despite not releasing its results yet, the company has received support from Microsoft (MSFT Stock Report) co-founder Bill Gates. The billionaire on Sunday says that he expects similar efficacy results from Novavax as Pfizer and Moderna. Earlier this month, Novavax received FDA fast-track authorization. This would help speed up the development of its vaccine.
The company uses a more traditional approach to its vaccine candidate. It utilizes a recombinant protein method to develop its vaccine instead of Pfizer’s mRNA method. The company accepted $1.6 billion from the U.S. government in July through Operation Warp Speed. This will help the company prepare for the manufacturing of its vaccine doses once approved. Novavax had also signed an agreement with Serum Institute, the world’s largest producer of vaccines to produce 1 billion doses. This certainly boosts Novavax’s production capabilities in anticipation of its vaccine results.
The company’s share price has been up by over 1,800% year-to-date. Fresh of its third-quarter fiscal two weeks ago, Novavax has reported a revenue of $157 million. The company is also working on its NanoFlu vaccine. The investigational flu vaccine earlier this year has met all primary endpoints in its Phase 3 trial. With that, Novavax is planning to submit NanoFlu for regulatory approval. Furthermore, the company plans to explore the possibility of combining NanoFlu with its coronavirus vaccine as a two-in-one vaccine in a post-pandemic setting. Could this make NVAX stock a top biotech stock to buy before December?