Should Investors Be Watching These Top Biotech Stocks Right Now? 3 Names To Consider
The coronavirus pandemic has thrown several top biotech stocks into the limelight this year. They include biotech companies that are currently in the coronavirus vaccine race like Pfizer (PFE Stock Report) and Moderna (MRNA Stock Report). Clearly, it is easy to see why investors are looking for the best biotech stocks to buy now. Of course, the industry is no stranger to top performers. Considering there are sectors of the industry focused on cancer and genetic illnesses, sudden surges in share prices are not unheard of. With such impressive gains, it does present an attractive opportunity for investors looking to dive into biotech stocks.
Looking at Novavax’s (NVAX Report) share prices this year, we can see what clinical results and announcements can do for top biotech stocks. It is currently up by over 2500% year-to-date even though its vaccine candidate is still in the testing stage. On December 28, Novavax announced that it would be beginning its Phase 3 vaccine trials in the U.S. Although the news is a positive development for the company, it did not prevent investors from selling off as NVAX stock dipped 7% the same day. Of course, as the stock takes a breather from its stellar year, investors could be keen to buy on the dip.
With 2021 fast approaching, investors are already looking to pad their biotech portfolios. The challenge is whether to go for the best performers this year or those that are under the radar. With that in mind, have a look at these top biotech stocks on our radar this week.
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Best Biotech Stocks To Watch Right Now: Myovant Sciences
Myovant (MYOV Stock Report) is a biotech company that specializes in drug and treatment development for a wide array of illnesses. These range from infertility in women to prostate cancer in men. Earlier this month, the U.S. FDA approved the company’s advanced prostate cancer treatment relugolix. This week, the company is in the spotlight again. MYOV stock prices shot up by over 30% at Monday’s opening bell.
This spike came after the announcement of Myovant teaming up with Pfizer to develop and commercialize Orgovyx for women’s health. Entering an alliance with vaccine superstar Pfizer is a fantastic play by Myovant. Evidently, this is a validation of the company’s capabilities. Investors hearing this news would likely be excited as Pfizer brings larger development capabilities and market reach. In fact, Myovant could receive a total payment of up to $4.2 billion by the end of the arrangement. Therefore, the deal will fortify the company’s financial position moving forward.
In its recent quarter fiscal posted in November, CEO Lynn Seely said, “I am very pleased with the significant progress we made during the second fiscal quarter in advancing both relugolix monotherapy tablet and relugolix combination tablet toward potential regulatory approvals, while preparing for commercialization in advanced prostate cancer, uterine fibroids, and endometriosis.” Seely also mentioned that the company has assembled a “strong and high-experience team” to facilitate the sales of relugolix. With no signs of slowing down, would MYOV stock see further growth in 2021?
Best Biotech Stocks To Watch Right Now: Vertex Pharmaceuticals
Next up, Vertex (VRTX Stock Report) is another top biotech stock worth watching now. The company has multiple approved medicines that treat the underlying cause of cystic fibrosis (CF) and has several ongoing clinical and research programs in CF. On top of that, it boasts a robust development pipeline with treatments ranging from pain, gene therapies, and kidney diseases. Obviously, with so many ongoing programs, chances are not all will be equally successful. This was evident back in October when the VRTX stock slid by over 20% when the company announced the discontinuation of the development of a particular drug. However, some recent news could present an opportunity for investors to buy on its current dip.
On December 28, Vertex announced that its New Drug Submission regarding its combination CF treatment, Trikafta, was accepted for Priority Review by Health Canada. EVP Carmen Bozic said, “We are pleased this submission has been accepted for Priority Review by Health Canada, and we anticipate this accelerated review process will enable access for patients as early as possible.” As the treatment is for CF patients 12 years and older, this presents an excellent growth opportunity for the company. Should things go as planned, I can understand why investors would be watching VRTX stock closely.
Another thing to consider when looking at Vertex is its financial resources. Despite its current stock performance, the company appears to be doing very well financially. The company reported a 61% year-over-year rise in total revenue in its recent quarter fiscal. Furthermore, it also ended the quarter with $5.36 billion in cash on hand. That represented a 57% rise over the same period. Considering all these, would you add VRTX stock to your 2021 watchlist?
Best Biotech Stocks To Watch Right Now: AstraZeneca
To top off our list, we have AstraZeneca (AZN Stock Report). Despite being a big name in the vaccine race, AZN stock prices are nevertheless lower than those of frontrunners BioNTech (BNTX Stock Report) and Moderna. More importantly, AstraZeneca has been refining its vaccine candidate as Pfizer and Moderna’s vaccines are distributed to the public. With AZN stock only up 20% since the March lows, could there be more upside in 2021? Your guess is as good as mine.
Over the Christmas weekend, CEO Pascal Soriot said that the company had found the “winning formula” to improve its vaccine candidate. He went on to clarify that the company’s vaccine candidate provided “100% protection” against severe forms of the coronavirus. In the same interview, he also mentioned that he is confident of the vaccine’s effectiveness on the new strain of coronavirus that has popped up in the U.K. Time will tell if AstraZeneca can deliver on these promises. If it does, investors could be in for a ride in 2021.
The company’s financials may be another reason investors are holding on to AZN stock as well. From its most recent quarterly report, the company raked in $6.58 billion in total revenue. More importantly, its earnings per share rose by 113% year-over-year, which definitely impressed investors. Could it be the right time to be investing in AZN stock? I’ll let you decide.