Are These The Top Biotech Stocks To Watch Now? 3 To Consider
Biotech stocks are still amongst the top performers on the stock market as we started off 2021. With numerous life-threatening diseases still running amok, there is a grave need for the treatments these companies develop. Seasoned and new investors alike are aware of this given the current attention on the sector. Nevertheless, there will always be a need for new innovations in biotech for the foreseeable future. This is because we face new diseases and their subsequent mutations each day. A clear example of this would be the discovery of the new strain of the coronavirus in the U.K. just last month. Sure, this brings more complications, but it also means there is room for more top biotech stocks to fill in the gaps.
As we all know, the coronavirus tailwind for the industry has been a major driving force for some of the best biotech stocks to watch right now. For example, Moderna’s (NASDAQ: MRNA) vaccine received U.K. approval last week. At the moment, MRNA stock is seeing gains of over 450% in the past year. Another example of this would be the company that developed the first effective coronavirus test, Co-Diagnostics (NASDAQ: CODX). Its shares are currently up by over 800% in the past year as well.
Naturally, investors would be eager to make bank off of the noble causes of the industry. Whether it is coronavirus vaccines or life-threatening disease treatment, biotech stocks are no stranger to explosive gains. With countless biotech companies having loaded developmental pipelines, it can be hard to keep up with the latest movers. As such, here is a list of the top biotech stocks to watch this week.
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Best Biotech Stocks To Watch In January
- Pacific Biosciences of California Inc. (NASDAQ: PACB)
- Applied DNA Sciences Inc. (NASDAQ: APDN)
- Chimerix Inc. (NASDAQ: CMRX)
Pacific Biosciences of California Inc.
Pacific Biosciences, or PacBio, is a California-based biotechnology company that develops systems for gene sequencing. Particularly, the company is currently in the business of sequencing the genome of the coronavirus. By developing the systems needed to do so, it appears that PacBio is providing a long-term means of fighting coronavirus. Clearly, PACB stock has benefitted from this as it is sitting at gains of over 650% in the past year. It even surged 11% over Friday’s trading session. This coincides with the word of new investments and the growth of existing ones in PacBio.
On January 8, it was reported that the Wellcome Sanger Institute committed to buying seven new systems from PacBio. On top of that, the institute will also be upgrading its existing PacBio systems as well. The institute’s director of scientific operations Cordelia Langford said, “The instruments allow us to advance our operational capacities to deliver to projects across the Sanger portfolio, including human and pathogen genomics as well as, especially, Tree of Life.” Adding to all this, SoftBank Group has taken a stake of about 6% in PacBio which is worth more than $350 million. With interest from investors on the research and financial fronts, investors’ current hype over PACB stock is obviously not unwarranted.
In its recent quarter fiscal reported in October, the company reported bringing in $19.08 million in total revenue. Furthermore, it ended the quarter with over $69 million in cash on hand. This marked a 108% year-over-year increase. Moving forward, CEO Christian Henry said, “With the positive customer momentum building around PacBio HiFi sequencing, we expect sequential growth for Q4.” All things considered, will you be adding PACB stock to your January watchlist?
Applied DNA Sciences Inc.
Another top biotech stock to watch would be Applied DNA. In brief, the company specializes in providing molecular technologies. APDN stock more than doubled last Friday when it received positive news from the U.S. FDA. However, it has taken a breather, falling over 20% as of 9:50 a.m. ET.
In the announcement, it was stated that the company’s COVID-19 test kit is one of the two tests that could identify new coronavirus mutations. This does include the mutation found in the U.K. variant of the virus as well. CEO Dr. James Hayward said, “We believe our Assay Kit can give public health officials and diagnostic laboratories a fast and cost-efficient tool – whether through diagnostic or pooled surveillance testing – with which to potentially identify and track B.1.1.7 spread that is made all the more challenging by the variant’s apparent transmission advantage.” Investors likely saw this as the company getting ahead of the competition. Time will tell if the company can hold on to its lead long enough to bring big gains for APDN stockholders.
In terms of financials, the company also released very positive guidance about its first fiscal quarter ended December 31. Applied DNA gave investors top-line total revenue guidance of about $1.6 million. This marks a huge 409% quarter-over-quarter increase. The company cites strong demand for its pooled coronavirus surveillance testing program as a driver of this growth. Hayward commented, “We expect continued uplift to revenues over the coming weeks as new clients ramp up their testing volumes.” All in all, it seems that Applied DNA is firing on all cylinders, and investors are watching APDN stock closely. Will you be doing the same?
Last but not least, we have Chimerix. Chimerix is a biopharmaceutical company that focuses on discovering, developing, and commercializing medicines for patients with life-threatening diseases. These include treatments for cancer as well. In relation to that, the company recently completed an acquisition that expanded its oncology portfolio last Friday. CMRX stock saw gains of over 69% on Friday. It is up another 13% as of 9:58 a.m. ET.
To elaborate, the company acquired a late-stage biotech company, Oncoceutics. The importance of this move lies in Oncoceutics’ lead product, ONC201. Impressively, the product has been shown to induce cell death in multiple cancer types in clinical settings. Harvard Professor of Neurology Dr. Patrick Wen said, “The tumor responses and safety profile we have observed with ONC201 in this devastating disease are compelling and I look forward to the possibility of accelerating its delivery to patients.” For one thing, Chimerix appears to have added a major asset to its oncology business. In terms of how it will handle it, CEO Mike Sherman said, “Our team is uniquely positioned to advance ONC201 given our considerable experience bringing targeted oncology products through the regulatory process.” Given all of this, it is clear as to why investors were flocking to CMRX stock last week.
Chimerix also reported significant progress for its initiatives across the board in its recent quarter fiscal. Moreover, it saw a 97% year-over-year rise in cash on hand. This added up to $38.13 million by the end of the quarter. Given its current position, Chimerix appears to be kicking into high gear this year. Could this be the beginning of exciting times for CMRX stock? I’ll let you decide.