Are These The Best Biotech Stocks To Watch This Week?
Biotech stocks have been riding a wave of success in the stock market this year. Investors looking for high growth investments have been paying attention to top biotech stocks in the last few months. The biotech industry has shown tremendous growth in recent years after all. While most of the attention has been on the coronavirus vaccine, there have been a wide array of companies that are also working on treatments and drugs for cancers, genetic disease, or even rare disease to prepare for the post-pandemic world.
Over the weekend, AstraZeneca (AZN Stock Report) has agreed to buy Alexion Pharmaceuticals (ALXN Stock Report) for $39 billion. The acquisition is one of the largest deals of the year for the drug industry. It would expand AstraZeneca’s reach in rare diseases. On top of generating shareholder value, the company expects to see attractive growth from highly specialized and rare disease care regions. As a result, the British drugmaker foresees double-digit growth through 2025 from the new synergies.
Looking for the best biotech stocks to buy may not be so straightforward, unlike the rest of the stock market. In many cases, biotech earnings reports aren’t the lightning rod for huge price swings. Instead, these biotech stocks typically tend to ebb and flow on clinical data releases, regulatory approval decisions, or government contracts. These are arguably far more important for gauging biotechnology firms’ developments. That said, having a list of top biotech stocks and closely watching their clinical dates and recent development will put investors in a better position to profit.
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Top Biotech Stocks To Watch This Week: CRISPR Therapeutics
First up, clinical-stage gene-editing company CRISPR Therapeutics (CRSP Stock Report) is one top biotech stock to watch this week. This came after the drug, CTX001, jointly developed by the company and Vertex Pharmaceuticals, showed a positive response towards treating the blood disorders beta-thalassemia and sickle cell disease. These genetic conditions affect a patient’s ability to produce enough functional hemoglobin. The companies have reported impressive results from early-stage trials, first in June and then additional positive data over the weekend.
Apart from treating blood disorders, there’s also a great chance where the company could score big with its cancer treatment, CTX110 if proven successful. If future clinical trials continue to bring in positive results, who knows, CTX110 might actually emerge as a major long term revenue driver for CRISPR. As promising as these drugs could be, investors are also looking at profitability when it comes to investing. And the truth is, the company is yet to be profitable and does not have a recurring revenue source. That could deter some investors from participating.
Nevertheless, positive data can be a validation of CRISPR’s approach for treating diseases. There could be opportunities for the company to license out its technology or partner with other companies. With $1.4 billion in cash sitting on its balance sheet, the company has little issues funding its ongoing research programs in the coming year. Considering all these, is CRSP stock a biotech stock to buy and hold for the years to come?
Top Biotech Stocks To Watch This Week: Arcturus Therapeutics
For investors who constantly follow the vaccine developments, they would come across the mRNA technology. The technology that allows Moderna (MRNA Stock Report) and Pfizer (PFE Stock Report) to produce safe and highly efficacious vaccines. While these household names may bring decent growth for investors, it’s highly likely that much of the value is already priced in. If you are looking for an up-and-coming biotech stock that could reach the finishing line for vaccines, take a closer look at Arcturus Therapeutics (ARCT Stock Report).
Arcturus uses the mRNA approach like both Moderna and Pfizer. Since these mRNA vaccines appear to be safe, it bodes well for Arcturus ARCT-021. Although the company’s vaccine is still in its phase 1/2 study, this vaccine could be a game-changer in comparison to the two major names. That’s because it only requires one dose. In addition, Arcturus is developing a freeze-dried version of its COVID-19 vaccine candidate to advance into late-stage testing. This version will be able to be stored in standard refrigerators, eliminating the need for expensive ultracold storage equipment.
It is interesting to note that even though Arcturus is a dark horse in the vaccine race, it has already brought such great returns to investors. I’m surprised to learn that the stock has soared more than 960% year-to-date. And that’s before it fell from its all-time high last week. At a market cap of around $2.6 billion, it is way cheaper than many of the rivals in the vaccine race. Can you imagine what could happen to the stock if ARCT-021 proves to be safe and effective? With that in mind, could ARCT stock be the best bet for those looking for exposure to vaccine stocks?
Top Biotech Stocks To Watch This Week: Vertex Pharmaceuticals
Vertex Pharmaceuticals (VRTX Stock Report) is another biotech stock worth a closer look at the stock market. The company’s main advantage is in its cystic fibrosis (CF) treatments. In fact, the company is a leader in treatments for CF and is currently monopolizing the CF treatment. This allows the company to shield itself from the coronavirus pandemic and broader economy. Consumers will still need to depend on CF drugs regardless of the broader state of the economy.
Looking at its stellar financial performance, it’s understandable why it has garnered so much interest among investors. The company reported revenue of $1.54 billion in its most recent quarter, up 62% year over year. Its adjusted earnings also more than doubled to nearly $700 million. And there’s a great chance this momentum will likely continue given the fact that the company recently won European approval for its CF drug Kaftrio. Just to be clear, Trikafta is the US name for Kaftrio, the two names refer to the same drug.
To top it all off, Vertex also has other drugs in the pipeline, albeit still in early trials. Its VX-150 is a pain medication that targets neuropathic and musculoskeletal pain. Ultimately, with Vertex detailing its plans for the next 5 years, the company has positioned itself to benefit from expected annual growth of 24.4% in the CF market through 2027. Judging from how Vertex manages its finances and how it strategizes the company for future growth, would VRTX stock be a top biotech stock to buy in 2021?