Could These Biotech Stocks Continue Their Rally Next Week?
Biotech stocks have outperformed the broader market year to date. Coronavirus isn’t the only reason for this either. The market for other immunotherapies is also showing positive signs. After all, coronavirus isn’t the only disease we are fighting right now. That is to say, despite the market volatility throughout this year, there is still great potential in the biotechnology industry. And with enough research, the correct timing, and perhaps a sprinkle of luck, biotech stocks could make investors wealthy in the long run.
If you would like your cash to work for you, you might want to take a closer look at some of the top biotechnology stocks that are making big moves this week. For sure, biotech stocks that are working on Covid-19 vaccines are more attractive to look at in the stock market today. The industry has all the characteristics that would attract the vast majority of traders. You tell me, which industry has the most hype, speculation, and potentially massive breakouts in a short span of time? As you have been following our articles, you would know that I am talking about biotech stocks. Occasionally up-and-coming tech stocks may share similar characteristics, but consumer stocks certainly don’t.
However, investors are also reminded to be cautious when dealing with biotech stocks. This is especially true for those up-and-coming biotech stocks, which are generally riskier in nature. If you ask me, I would suggest investors steer clear of cash-hungry biotech companies with dire funding needs. With the recent funding from the US government to Pfizer (PFE Stock Report) and Moderna’s (MRNA Stock Report) patent issues, there is a lot for investors to process before making any investment in the industry. That said, are you looking at some of the top biotech stocks that are making big moves this week?
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Top Biotech Stocks To Buy Now [Or Avoid]: Arbutus Biopharma Group
Arbutus Biopharma (ABUS Stock Report) came to light after the company won a patent challenge from Moderna. Originally a small-cap stock, could ABUS stock leave the nest for good after seeing millions of its shares changed hands on Thursday? Biotech stocks have been surging thanks to speculation around Covid-19 vaccination. After winning Moderna’s patent case, can we expect ABUS stocks to extend their rally to the week ahead?
Intra-day trading in this small-cap biotech stock has seen ABUS stock jump 120%. The stock has been hovering in the $2-$3 range this year before making a breakout yesterday. Now, ABUS appears to be holding the lipid nanoparticle (LNP) technology patent. Lipid nanoparticles are the delivery system for mRNA drugs, including Moderna’s leading vaccine candidate, mRNA-1273. Of course, Moderna’s financial future of its coronavirus vaccine may be jeopardized as of this stage.
And that was leading to MRNA stocks tumbling on Thursday. Having said all that, could the prospective royalty “entitlement” send ABUS stocks through the roof?
Top Biotech Stocks To Buy Now [Or Avoid]: Milestone Pharmaceuticals
Shares of Milestone Pharmaceuticals (MIST Stock Report) skyrocketed on Thursday. This came after new guidelines for one of its clinical studies. According to the company’s press release, the company has reached an agreement with the U.S. Food and Drug Administration concerning its NODE-301B study. This has something to do with changing the name to RAPID and adopting guidelines that will allow it to be used for a future New Drug Application. Following this press release, MIST stocks have soared more than 150% on Thursday. Despite making a huge breakout yesterday, MIST stock is actually 60% lower from this year’s high.
As Joseph Oliveto, president and CEO of Milestone Pharmaceuticals puts it: “We are pleased with the outcome of our recent interactions with the FDA, as they outline an efficient path to registration for etripamil which eliminates the need to start a new Phase 3 study. This study, together with our recently completed NODE-301 study, which will also now use a 30 minute endpoint, will serve to fulfill the efficacy requirements for a New Drug Application (NDA) for etripamil in PSVT.”
More importantly, the spike in MIST stock prices could also be simply due to the new funding injected into the company. The company has received $25 million from RTW Investments. And that could be sufficient for the company to operate until the second quarter of 2022. Now that the company has sufficient cash to buffer through a year or two, could the company focus on steering itself to a stronger balance sheet? Would it be possible for us to see MIST stock back to $23 per share by the end of this year?