Are These The Top Biotech Stocks to Buy Right Now?
Biotech stocks have been a hot topic among investors these days. This comes as the U.S. undergoes mass vaccination against the coronavirus. Investors are always on the lookout for top biotech stocks that could be the next big thing. These stocks could yield exponential returns as demand for a certain treatment or vaccine surges. Take Moderna Inc (NASDAQ: MRNA) for example. Investors who bought MRNA stock during the early stage of vaccine development in early March last year are reaping its rewards as it skyrocketed over 460% a year later.
Perhaps it may be a little late to invest in biotech stocks that specialize in COVID-19 vaccines now. The good thing is, there are other companies that are working on other diseases. For instance, Annovis Bio (NYSE: ANVS) seeks to stop Alzheimer’s neurological degeneration. It is developing drugs that improve axoplasmic flow, the process responsible for the survival of nerve cells. Should the company’s promising treatment receive approval from the FDA, we could see ANVS stock skyrocketing.
While most biotech companies seek to prevent diseases or reverse damages, CohBar Inc (NASDAQ: CWBR) took it up a notch. The company’s objective is to extend human longevity. Still, in the early stages, its research in mitochondria-based therapeutics should yield a new class of drugs that facilitate human metabolism and cell lifespan. With so many exciting avenues in biotech research, let’s take a look at 4 of the best biotech stocks to watch in the stock market today.
Top Biotech Stocks to Buy [Or Sell] Now
- Vericel Corp (NASDAQ: VCEL)
- Aytu Bioscience Inc (NASDAQ: AYTU)
- 111, Inc (NASDAQ: YI)
- Novavax Inc (NASDAQ: NVAX)
Vericel Corp (VCEL)
First up the list is Vericel Corp. The biotech company specializes in advanced cell therapies designed for sports medicine and severe burn treatments. If you have been paying attention to biotech stocks lately, you’ll notice that VCEL stock is up by over 70% in the past 3 months. VCEL stock performance continues to snowball as it spiked over 13% on Thursday, delighting investors.
Such spike in Thursday’s performance is possibly attributed to the news of Vericel joining the S&P Smallcap 600, replacing QEP Resources Inc (NYSE: QEP). The move is effective on Monday 22. That would certainly attract even more attention to VCEL stock. The inclusion in a relatively high-profile index is certainly an achievement. But it’s important to remember that this doesn’t change the fundamentals of a company at all.
From its most recent quarterly earnings, revenue came in at $45.23 million while earnings per share were $0.25. Both figures beat analyst estimates. With strong earnings from its recent quarterly reports, Vericel appears to be on track to continue its success from its drug that treats cartilage defects in the knee. Following such promising development of its cell therapy techniques, I wouldn’t be surprised if we continue to see VCEL stock appearing on our radar. With such bullish gains in VCEL stock this week, does it incite a buying frenzy among investors?
Aytu Bioscience Inc (AYTU)
Another biotech stock that appears on investors’ radar is Aytu Bioscience Inc. A pharmaceutical company that focuses on novel therapeutics, its current product lineup includes antihistamines, steroid nasal gels, and many more. Since the beginning of March, AYTU stock has shot up over 25%.
Aytu Bioscience has also been making moves behind the scene, finalizing a merger with NEOS Therapeutics (NASDAQ: NEOS) just recently. Under the terms of the deal, NEOS stockholders will receive 0.1088 shares of AYTU stock for each NEOS share they own. The combined entity will have an increased footprint in the prescription pediatric market, an established, growing multi-brand ADHD portfolio addressing the $8.5 billion ADHD market and significant combined revenue scale.
Glass Lewis told shareholders that the combination would create a “company with a stronger financial profile and balance sheet than Neos on a stand-alone basis. Broadly speaking, we see no cause for significant concern with the strategic rationale for the proposed transaction and expect shareholders of both companies could benefit from the combination.”
AYTU also recently completed a pilot study on its Healight™ COVID-19 treatment which yielded positive results. The treatment revolves around passing UVA light down the tracheal system in order to kill and effectively reduce SARS-CoV-2 viral load. With such an innovative approach to treating COVID-19 patients, will investors capture the opportunity by buying more AYTU stock?
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111, Inc (YI)
Coming up next is China-based 111 Inc, a healthcare platform company committed to digitally connect patients to various medical and healthcare services. YI stocks surged rapidly earlier this year, reaching a peak of $27.33 on February 16. However, the company has lost 40% of its value since then.
Despite the recent decline, 111 Inc’s financial announcement on March 18 told a different story. Net revenues for 2020 reached a record of $1.26 billion, which represented a 107.6% increase year-over-year. Gross profit was just as remarkable at $56.1 million, an increase of 121.5% year-over-year.
111, Inc also announced a strategic partnership with BeiGene, Ltd (NASDAQ: BGNE), another biotech corporation that commercializes innovative medicines worldwide. Such partnership allows access to oncology medicines for 111, Inc’s customers. This expands an already impressive list of treatments and medicines available. With such exciting developments surrounding the company, would you be adding YI stock to your watchlist?
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Novavax Inc (NVAX)
Remember earlier in the introduction where I highlighted that it may be a little late to invest in biotech stocks that focus on COVID-19 vaccine? Novavax could be one of the few exceptions. Still pending FDA and international approval, Novavax’s two-dose vaccine posted 96.4% efficacy. The vaccine is also 100% effective in preventing recipients from going severe, which included symptoms like high resting heart rate, tachypnea, hospitalization, and requiring ventilation.
Although Novavax is one step away from getting approval, NVAX stock has taken a breather since early February. Should the company’s vaccine be approved and distributed to the public, the company should see an estimated revenue of $4.07 billion by the end of the year.
Moving forward, Novavax is looking at conducting vaccination trials for other COVID strains. That means more sales should booster shots of these variants are required. Not only that, but the company is also looking at combining its COVID-19 vaccine with one of its flu vaccines into a single shot. This certainly sounds more attractive compared to other COVID-19 vaccines. That said, does this encourage more buys or sells into NVAX stock?