Looking For The Top Biotech Stocks To Watch Ahead of 2021?
Any investor worth their salt can tell you that biotech stocks have been all the rage this year. The race to fight the coronavirus pandemic has indeed provided a massive tailwind for the industry. In the latest news, AstraZeneca’s (AZN Stock Report) vaccine has just received approval for emergency use in the U.K. As yet another vaccine becomes available to the public, how would the other top biotech stocks fare in the stock market today?
Evidently, there has been strong growth across the industry this year. The more obvious cases such as vaccine company Moderna (MRNA Stock Report) have been in the limelight this year. Pacific Biosciences (PACB Stock Report) who is sequencing the coronavirus genome also saw major gains of over 380% year-to-date. In non-coronavirus areas, we have also seen similar surges for biotech companies working on gene editing, cancer, and rare diseases. You could say that biotech stocks as a whole present an interesting opportunity for investors.
However, these impressive gains are not without risk. Considering that the biotech sector has shown instances of volatility before, investors should be wary. On one hand, positive findings can cause top biotech stocks to buy to hit all-time highs. On the other hand, bad news could send their share prices plummeting. For new and seasoned investors alike, this can seem rather intimidating. If you are still reading, I would think that you are still keen on jumping into biotech stocks. To help you with that, here is a list of the best biotech stocks to watch going into 2021.
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Best Biotech Stocks To Watch Next Week: Merck & Co., Inc.
Starting us off, we have Merck (MRK Stock Report). It is one of the largest pharmaceutical companies in the world. The company specializes in researching treatments for a wide array of diseases that affect both humans and animals. These include cancer, infectious diseases such as HIV and Ebola, and emerging animal diseases. The company’s share prices are up by 22% since the March lows but have yet to see gains year-to-date. However, recent news from the company could make for an interesting opportunity for investors.
The news in question involves Merck’s work with AstraZeneca on the development of cancer drug olaparib. This week, news broke that olaparib was approved in Japan for the treatment of three types of advanced cancers. These are of the ovarian, prostate, and pancreatic variety. Merck CMO Dr. Roy Baynes said that the first-of-its-kind approval in the region would enable Merck to “advance this evolving era of personalized medicine and change how these cancers are treated.” It definitely marks an interesting time in Merck’s long history. Should things go as planned, MRK investors could be in for long-term gains.
In terms of financials, the company appears to be doing fine. Merck reported total revenue of $12.55 billion in its third-quarter fiscal back in October. Together with the $7.36 billion in cash on hand that it ended the quarter with, Merck is no small player. With solid financials and its many years of experience, could we see MRK stock flourish in 2021? I’ll let you decide.
Best Biotech Stocks To Watch Next Week: Exelixis, Inc.
Exelixis (EXEL Stock Report) is a genomics-based drug discovery company. It is known for producing cabozantinib, an FDA-approved treatment for thyroid cancer. At the moment, the drug is a part of numerous ongoing or planned clinical trials involving 15 different types of cancer. It may not necessarily be a one size fits all situation for Exelixis. But, the prospect of being a possible multi-cancer treatment producer does set the company up for potential gains in the long-term. With a year-to-date rise of over 39% investors could see room for EXEL stock to grow going into 2021.
Last week, the company announced the results of its phase 3 trial of cabozantinib in patients with differentiated thyroid cancer. Mainly, it was found to reduce the risk of disease progression or death by 78%. CMO Gisela Schwab said, the company is pleased that its treatment showed “clinically meaningful and statistically significant improvement in progression-free survival for patients with differentiated thyroid cancer who are in need of additional treatment options after prior therapy.” With its flagship product bringing significant results again, Exelixis continues to impress.
In its recent quarter fiscal reported last month, the company brought in total revenue of $231 million. It also ended the quarter with $334 million in cash on hand. CEO Michael Morrissey said, “In the third quarter of 2020, the Exelixis team built the foundation to accelerate revenue growth with CABOMETYX® (cabozantinib) in 2021,” He continued, “As we continue working to maximize the clinical and commercial potential for CABOMETYX, we’re moving quickly in parallel to build a diversified pipeline behind it.” For one thing, the company is not resting on its laurels despite having a prominent cancer treatment on hand. All things considered, how do you think EXEL stock will fare in 2021?
Best Biotech Stocks To Watch Next Week: Bristol-Myers Squibb Co
Third, we have Bristol-Myers (BMY Stock Report). The New-York based pharmaceutical company is no newcomer to the industry. It manufactures prescriptions, pharmaceuticals, and biologics to treat a wide range of illnesses ranging from cancer to psychiatric disorders. Despite BMY stocks seemingly average performance on the stock market this year, Warren Buffet appears to see potential in this stock. That’s right, BMY stocks are on Berkshire Hathaway’s (BRK-A Stock Report) portfolio. With a lineup of eight superstar drugs, Buffet could be seeing potential growth aspects.
Bristol-Myers’ recently reported its third-quarter fiscal last month. In it, the company saw a 75% year-over-year jump in total revenue which adds up to $10.54 billion. On top of that, Bristol-Myers ended the quarter with $19.34 billion in cash on hand. The company also saw year-over-year jumps of 88% in U.S. revenues and 57% in international revenue. CEO Giovanni Caforio commented, “Our financial strength and flexibility combined with our robust inline businesses, multiple launches, and progress in our deep pipeline, including the promising results from the deucravacitinib trial, strongly position the company to deliver our mission and help more patients.” With solid growth in overall product sales, it seems that Bristol-Myers is not slowing down anytime soon.
Recently, the company completed a Marketing Authorization Application for its intestinal ulcer treatment, Zeposia. Head of Immunology Mary Harler said, “This validation is an important step toward making Zeposia available to eligible patients in the European Union, who are in need of new treatment options offering proven efficacy and safety, as well as oral administration.” Given all of this, will you be adding BMY stock to your watchlist?