Are These The Best Biotech Stocks To Buy Now?
Are you constantly searching for biotech stocks to invest amid the coronavirus pandemic? Like it or not, biotech stocks have been a popular asset class due to their potentially massive breakouts. This year, the top biotech stocks are making big moves like never before. Due to this reason, it is gathering a lot of interest from investors and traders. And they are looking to find the next big thing to bet on. Since June, there has been speculation that an over the counter steroids, or more commonly known as dexamethasone, could significantly reduce the mortality rate among critically-ill COVID-19 patients.
Now, the World Health Organization (WHO) has provided guidance that anti-inflammatory steroid, dexamethasone is effective in reducing death rates among ventilated patients. Investors could be looking for healthcare companies that are currently supplying this steroid to the market. The steroid demonstrated its effectiveness in treating severely ill coronavirus patients in a landmark study where it reduced death rates. Martin Landray, professor of medicine and epidemiology at the University of Oxford and lead researcher on the Recovery trial, explained that what appeared to make most COVID-19 patients severely ill and die was that their immune system went into “overdrive”. Steroids helped pare back this exaggerated immune response. With most of the focus on biotech stocks around COVID-19, are these biotech stocks on your watchlist?
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Top Biotech Stocks To Buy [Or Avoid] In September 2020: Pfizer Inc.
When it comes to looking for the best biotech stocks to buy, Pfizer (PFE Stock Report) doesn’t usually top the list. Unlike many biotech companies in the market, PFE stocks have not been performing as well as industry peers. In fact, PFE stock is still 5% down year-to-date. Let’s face it, no one likes stock that is “boring”. After all, they stay relatively constant over a long period of time. But here’s why PFE stock could be worth your attention now.
Pfizer tops the list of manufacturers for dexamethasone in the U.S. with an annual sales of $52 billion. It has another near-term catalyst that could send PFE stock skyrocketing should its vaccine candidate prove to be safe and effective. Pfizer could also provide positive news on its pipeline at the investor presentations which will be taking place on Sept. 14 and 15.
Of course, the biggest potential catalyst would be for BNT162b2, the COVID-19 vaccine candidate developed by Pfizer and BioNTech (BNTX Stock Report) to win the FDA emergency use authorization this year. Both companies have recently announced that they have enrolled over half of the targeted 30,000 patients for late-stage testing of BNT162b2.
Top Biotech Stocks To Buy [Or Avoid] In September 2020: Novartis
Next up, Novartis (NVS Stock Report) could also be one of the biggest beneficiaries if the dexamethasone becomes mainstream in treating critically COVID-19 patients.
The company comes second in ranking after Pfizer in terms of the annual revenue of dexamethasone drugs. This is on top of its huge portfolio of profitable drugs and many late-stage trials that could act as potential catalysts for NVS stock.
The company has also recently formed a new collaboration with Africa Medical Supplies Platform (AMSP) to facilitate supply of COVID-19 related medicines. This collaboration aims to ensure efficient and rapid access to medicines for African and Caricom governments.
Top Biotech Stocks To Buy [Or Avoid] In September 2020: Merck & Co.
Merck & Co. (MRK Stock Report) hasn’t had a good year because of the coronavirus pandemic. The company’s top line of pharmaceuticals has struggled to bring in revenue. Social distancing measures led to fewer visits from patients and reduced patient’s access to their drugs. The company saw its vaccination segment dropped 29% year-over-year. However, the company still has a few bright spots that could be of interest to prospective investors.
Of course, you would have guessed that Merck is one of the top manufacturers for dexamethasone. Besides, the company has numerous cancer drugs under its belt. That could power their growth in the medium to long term. Cancer treatment saw $3.4 billion in second-quarter sales, a 29% growth year-on-year.
The company continues to seek new FDA approvals for Keytruda so that it can market the drug for more types of cancer. Currently, Merck has 11 phase 2/3 trials involving Keytruda. Research firm Evaluate Pharma expects Keytruda to become the world’s best-selling drug by 2024.