Is Now The Time To Invest In These Biotech Stocks?
Some of the top biotech stocks have been performing exceptionally well in the stock market. One reason for this could be the fact that the world is currently still plagued by COVID-19. As vaccination rollout continues, these vaccine companies continue to reap gains. For instance, Moderna (NASDAQ: MRNA) reported total revenue of $803 million in its latest financials. We all know the importance of healthcare and the pandemic merely magnified the value of the biotech industry. However, biotech stocks have always been known to be a high-risk, high-reward investment. A positive clinical outcome or update can lead to a boost in share valuation. But at the same time, a negative outcome or update can cause these stocks to plummet.
Take Alexion Pharmaceuticals (NASDAQ: ALXN) and AstraZeneca (NASDAQ: AZN) for example. There was an announcement last week that the U.S. Federal Trade Commission has allowed the merger between the two companies. Last December, both companies entered into a definitive agreement for AstraZeneca to acquire Alexion for $39 billion. The announcement had caused Alexion stock to spike by over 30% back in December. This acquisition would surely boost the combined entity’s position in immunology.
Nevertheless, it is still challenging for investors to navigate around biotech stocks and their growth potential. However, with proper research and due diligence, investors could make well-informed choices on which biotech stocks are worth betting on. With that in mind, do you have this list of top biotech stocks to buy in the stock market this upcoming week?
Top Biotech Stocks To Buy [Or Avoid] In April
- Johnson & Johnson (NYSE: JNJ)
- Pfizer Inc (NYSE: PFE)
- Ocugen Inc (NASDAQ: OCGN)
- Regeneron Pharmaceuticals Inc (NASDAQ: REGN)
Johnson & Johnson
Johnson & Johnson (JNJ) engages in the research and development, manufacture, and sale of a range of products in the healthcare field. It operates through its three segments; Consumer, Pharmaceutical, and Medical Devices. Recently, the company had some setbacks with its vaccine causing some side effects. However, many regulators believe that the benefits continue to outweigh the risks. Despite the negative news surrounding the company, its share price seems to be relatively unaffected. Furthermore, there is news of the vaccine distribution resuming soon. Could this propel JNJ stock to test its all-time high price again?
On Wednesday, JNJ announced that the European Medicines Agency’s (EMA) Pharmacovigilance Risk Assessment Committee (PRAC) updated its guidelines for use of the vaccine. Following PRAC’s recommendation, the company will start supplying COVID-19 vaccines across Europe. Furthermore, JNJ is optimistic that it will fulfill its commitment to supply 100 million doses in the U.S. and 200 million doses across Europe.
On top of that, JNJ’s single-shot COVID-19 vaccine is expected to be imported to India for “fill and finish” by June or July. Fill and finish is the final step in the manufacturing process of putting the vaccine into vials or syringes. So, with the company set to resume its vaccine distribution operations soon, it should clear some doubts among investors. Considering all these, would you consider buying JNJ stock now?
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Next up, we have multinational pharmaceutical corporation, Pfizer. The company was the first coronavirus vaccine company to have its vaccine candidate approved by the FDA for emergency authorization. As of April 22, 2021, there are over 114 million doses of Pfizer vaccines being administered in the U.S. However, PFE stock has been trading sideways for the past year. This could well change as the company is constantly showing new positive discoveries regarding the vaccine.
In March, the company announced positive results in a Phase 3 trial in adolescents for its coronavirus vaccine study. Essentially, the company reported that its vaccine for adolescents aged 12 to 15 demonstrated 100% efficacy and robust antibody responses. Could Pfizer be the first company to have its vaccine approved for adolescents? Your guess is as good as mine.
On top of that, the company discovered that its vaccine is effective at preventing symptomatic and severe diseases in people with chronic illnesses. This analysis involved almost 1.4 million people by Israel’s largest healthcare provider. It goes without saying that this will offer hope to its investors and countries receiving Pfizer vaccines. On a side note, the company will also sign a contract this month to supply an additional 50 million doses of vaccine to Japan by September. This is in the wake of Japan’s sudden rise in cases. In fact, the government is considering a declaration of a state of emergency for Tokyo and Osaka. With all these in mind, would you consider being a PFE stock investor?
Next up, Ocugen. This is a company that traditionally focuses on developing cures for blindness diseases. The company’s pipeline product includes OCU400, a novel gene therapy product candidate restoring retinal integrity and function across a range of genetically diverse inherited retinal diseases. However, with the onset of COVID-19, an opportunity surfaced for the company to enter the COVID-19 race. Ocugen has been working endlessly to advance the development of COVID-19 vaccine candidate Covaxin with partner Bharat Biotech. The company stock skyrocketed by a whopping 42.92% on Thursday. In less than six months, the stock has risen over 3000%.
What could be the catalyst of this sudden hike? Through a collaboration with Bharat Biotech, an Indian vaccine specialist, it is hoping to bring Covaxin to the U.S. On Wednesday, its partner Bharat announced interim results from a Phase 3 study. The analysis showed vaccine efficacy of 78% against mild, moderate, and severe COVID-19 diseases. Also, the efficacy against severe COVID-19 disease was 100%, with results in lesser hospitalizations.
To top it off, the efficacy against asymptomatic patients was 70%. This would result in decreased transmission in Covaxin recipients. Considering these exciting new results, would you jump on the OCGN stock bandwagon?
Regeneron Pharmaceuticals Inc
To sum up the list, we have one of the leading biotech companies that develop medicines for serious diseases, Regeneron. With multiple FDA-approved products already in its portfolio along with several candidates in the pipeline, Regeneron has been boasting decent returns over the past few years. However, the company’s share has been trading sideways for the past year. This recent weakness could potentially be a buying opportunity for investors considering the upside of the company.
Last Monday, the company provided positive data from a late-stage study of recently infected asymptomatic COVID-19 patients. The new phase 3 trial data shows that a single shot of Regeneron’s COVID-19 antibody cocktail was able to prevent symptoms in 81% of infected individuals.
On top of that, people who were symptomatic were able to resolve their symptoms, on average, two weeks faster than those who received placebo. Financially, Regeneron is also in a good place. For the fiscal year ended December 31, 2020, the company’s revenue rose 8% to $8.5 billion. Also, its net income surged by 66% to $3.51 billion. Hence, would these new findings make REGN stock a buy for you?