Are These The Best Stocks To Buy Now If You Like The Biotechnology Industry?
Biotech stocks that focus on COVID-19 and cancer treatments are the ones seeing strong demand in the stock market today. Truth be told, they weren’t only the best performers in biotech, they post steeper gains than most industries, if not all. Hence, it is not surprising why investors have been looking for the best biotech stocks to buy in the market. Investors love biotech companies because many of them could provide outsized gains in a short time frame, but they do come with a healthy dose of risk.
A lot of attention may be given to these biotech stocks that are having breakout overnights. Just this week, we saw how Scopus Biopharma (SCPS Stock Report) and Virios Therapeutics (VIRI Stock Report) rocketed out of the gate since their public debut this week. Of course, with these biotech IPO stocks coming out so hot, I wouldn’t be surprised if they take a breather soon. Admittedly, one may get an adrenaline rush when chasing these newly listed stocks. But I wouldn’t go so far as to continue chasing those that saw triple-digit percentage gains in one day.
How Do We Look For The Best Biotech Stocks To Buy?
As we are a few weeks away from 2021, investors are looking for the best stocks to buy in the coming year. It’s natural for investors to consider this year’s strong performers. Who knows, this might be the beginning of a massive growth story for these stocks over the next decade. Looking for the best biotech stocks to buy can be tricky given that volatility often haunts the space. However, with proper research and due diligence, you might have the upper hand to increase your chance of scoring big with these top biotech stocks. So, without further ado, let’s take a closer look at these biotech stocks that are trending in the stock market.
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Best Biotech Stocks To Buy [Or Avoid] Now: Moderna Inc.
Moderna (MRNA Stock Report) has been under the spotlight this week as it just got the backing from the FDA advisory panel on Thursday. This endorsement is a key step paving the way for the distribution of the second COVID-19 vaccine in the U.S. next week. This is huge for Moderna as its mRNA coronavirus vaccine candidate will be the company’s first product to roll out in the market. It is undeniably a leading player in the fight against the coronavirus with its vaccine candidate, mRNA-1273 yielding a 94.1% efficacy rate in its Phase 3 trial.
In its recent quarter fiscal posted in October, Moderna saw a colossal 826% year-over-year jump in total revenue, primarily due to an increase in grant revenue. Additionally, the company also announced its entrance into the seasonal flu vaccine business. Even in such a busy time, the company is still looking to push innovation on different fronts. Moderna appears to be firing on all cylinders and investors appear to be very keen to see what it does next.
On top of all this, Canada has doubled its initial advance market commitment for Moderna’s vaccines to 40 million doses. The country’s faith in Moderna’s vaccine candidate bodes well for it indeed. Moderna has initiated the review process with Health Canada and is looking to obtain Emergency Use Listing (EUL) with the World Health Organization. Time will tell if the company’s vaccine proves its worth. All things considered, would you bet on MRNA stock ahead of its expected roll-out in the U.S. next week?
Best Biotech Stocks To Buy [Or Avoid] Now: Regeneron Pharmaceuticals
Regeneron Pharmaceuticals (REGN Stock Report) is one of the leading biotech stocks inventing life-transforming medicines for people with serious diseases. Not long ago, the company received the green light from the U.S. FDA for the emergency use of its antibody-drug. This is the same drug that President Trump took when he contracted the novel coronavirus. Early results suggest the drug may reduce COVID-19-related hospitalization or emergency room visits in patients at high risk for disease progression, the FDA said.
The company currently has a portfolio of FDA-approved drugs. Sales of Eylea which treats wet macular degeneration, an eye condition, rose 11% in the third quarter. But two of the most promising drugs are Dupixent and Libtayo. Sales of Dupixent, for eczema, jumped 69% year over year. Meanwhile, Libtayo, a drug for skin cancer, received priority review from the FDA for non-small cell lung cancer. We could be seeing a decision from the FDA in the coming months. Should it receive the approval, the annual sales from this drug will be much higher than the current amount of over $300 million.
The drivers of growth in the near-term for the company are clear. The antibody cocktail to treat COVID-19 and other prominent drugs will likely provide a boost to earnings. However, it is also worth noting that Regeneron has a lot happening in its key pipeline progress. The company reported that it currently has 20 product candidates in clinical development. Some of these drugs have shown very promising results so far. The FDA had also approved the company’s Inmazeb drug, which treats Ebola patients. When administered, it dramatically reduces the chances of dying from Ebola. In total, the company currently has 7 FDA-approved medicines and an extensive pipeline. This shows that the company is not reliant on the success of just one product. With that in mind, would you consider buying REGN stock now?
Best Biotech Stocks To Buy [Or Avoid] Now: Johnson & Johnson
Another biotech stock worth watching is Johnson & Johnson (JNJ Stock Report). The company has enjoyed a nearly 40% increase in stock price since the stock market crash in March. Johnson & Johnson is arguably one of the most reliable companies in the world. While its vaccine candidate may lag behind Pfizer’s and Moderna’s from a timeline perspective, it is not too far off. The healthcare giant is now undergoing its phase 3 trial, which started in September. Furthermore, the company stated that its vaccine candidate is compatible with standard vaccine distribution channels. If so, it would not require new infrastructure to get it to people who need it.
The real deal is now on the supply chain and logistics of the vaccine. J&J can boast a supply chain that is best in its field. Besides, it may not need to store vaccines in such cold temperatures as Pfizer or Moderna. This plays well for J&J as it prepares to distribute up to 1 billion doses of its vaccine candidate in 2021. The company runs its supply chain with cutting edge digital technology. This includes collaborative robots, self-driving vehicles, and augmented reality. The company is on its way to reaching its 2021 goal thanks to a range of strategic manufacturing partnerships. Among the companies that have partnered with J&J for this endeavor are Emergent BioSolutions (EBS Stock Report) and Catalent (CTLT Stock Report).
The company had posted its third-quarter results in October. J&J had reported sales of $2.1 billion, reflecting a 1.7% increase year-over-year. The company had also reported earnings per share of $1.33, which is a staggering 101.5% increase from a year earlier. As J&J prepares for its vaccine distribution in 2021 once its vaccine proves to be efficacious and safe, will you consider betting on JNJ stock ahead of its clinical trials data?