Are These The Best Biotech Stocks To Watch This Week?
Biotech stocks are among the hottest stocks in the stock market this year. While many stocks on the market have yet to recover fully from the crash in March, top biotech stocks have thrived. This is in large part due to the global pandemic and the relevant medical products biotech companies offer. We have seen share prices of key vaccine companies skyrocket. For example, Moderna’s (MRNA Stock Report) share prices are up by over 600% year-to-date. With gains like this, it is clear that seasoned and new investors alike have their sights on this part of the industry.
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Just yesterday, news broke that Pfizer (PFE Stock Report) received approval from the European Medicines Agency regarding its vaccine candidate. This would mean that Pfizer can get its vaccines to countries across the EU in the next few days. Moreover, BioNTech (BNTX Stock Report) CEO Uğur Şahin has expressed confidence in its vaccine’s capability to combat the new U.K. variant of the coronavirus. With these positive developments, other top biotech stocks to watch could fly on under investors’ radars. In reality, there are still countless other diseases that we have yet to overcome. Some biotech companies have persevered through these tough times to continue their work in non-coronavirus related fields as well.
In fact, there was some big news in the gene-editing section of biotech yesterday as well. CEO of ARK Invest, Cathie Wood hailed genomic stocks as a primary growth driver for her flagship fund over the next five years. She said, “The biggest upside surprises are going to come from the genomic space,” It is no surprise that the statement has convinced more investors to take a closer look at gene editing companies. With that in mind, here is a list of top biotech stocks to consider for your watchlist.
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Best Biotech Stocks To Watch Now: Editas Medicine Inc.
To start us off, we will be looking at Editas (EDIT Stock Report). Editas is a Massachusetts-based clinical-stage biotech company. It specializes in developing therapies using gene-editing technology. EDIT stock popped by a phenomenal 32% on Monday. Month-to-date EDIT stock has enjoyed a share price increase of 164.38%. Investors must be curious as to what the company has going on under its hood now that it is in the spotlight.
Earlier this month, the company filed a request with the U.S. Food and Drug Administration (FDA) to begin its clinical trial testing for EDIT-301. The treatment in question is the company’s experimental gene-editing treatment for sickle cell disease. Prior to that, investors were jumping on EDIT stocks as after the company reported positive pre-clinical data suggesting possible best-in-class status for EDIT-301. Additionally, the company is also working on an experimental treatment for Leber disease known as EDIT-101. It appears that Editas is firing on all cylinders moving into 2021. Should the company be able to replicate its successes so far, investors could be looking at an interesting opportunity with EDIT stocks in the long-term.
At the end of the recent fiscal quarter, Editas had existing cash, cash equivalents, and marketable securities of $541.3 million. This would fund its operating expenses and capital expenditures into 2023. Given all of this, do you think EDIT stock is worth adding to your 2021 watchlist?
Best Biotech Stocks To Watch Now: Intellia Therapeutics Inc
Following that, we have Intellia (NTLA Stock Report). Intellia is a biotech company that focuses on developing gene editing-based biopharmaceuticals. NTLA stocks rose 15% on Monday without any company-specific news. It is up 66.83% since the beginning of December. The genomic stocks tailwinds are a welcomed sight for investors, but could that be the only reason NTLA stock is performing so well?
Earlier this month, Intellia released results regarding its latest treatment trials in non-human primates. The company achieved significant results compared to the conventional gene therapies used to achieve the production of alpha-1 antitrypsin (AAT) proteins in humans. CEO John Leonard, M.D. explained, “Our new data reinforces the promise for Intellia to potentially cure a variety of rare genetic diseases requiring the restoration of a functional protein in the liver with a single-course therapy.” He continued, “In parallel with advancing to the clinic treatments for other severe diseases, we will continue preclinical studies that further validate our wholly-owned, CRISPR-based AAT deficiency treatment strategies for achieving normal AAT protein levels.” Should the company be able to replicate its successes so far, investors could be looking at an interesting opportunity with NTLA stock in the long-term.
From its recent quarter fiscal posted in November, the company ended the quarter with $407.9 million in cash and cash equivalents. Intellia expects that this will fund its operating expenses and capital expenditure requirements for at least the next 2 years. All things considered, the company appears to be managing its resources well. Investors seem to think so seeing how NTLA stock has fared in 2020. Do you think it will continue its momentum moving forward?
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Best Biotech Stocks To Watch Now: Agios Pharmaceuticals Inc
Third, on our list is Agios (AGIO Stock Report). The company develops anti-cancer therapeutics along with treatments for rare genetic diseases. AGIO stock jumped 28% on Monday after announcing the sale of its oncology business to independent French pharmaceutical company Servier.
The transaction will cost Servier $2 billion for the ownership of Agios’ commercial, clinical and research-stage oncology portfolio. This is supposedly part of the company’s efforts to streamline its developmental focus towards expanding its genetically defined disease portfolio. CEO Jackie Fouse said, “The proceeds from the transaction will allow us to focus on rapidly advancing our genetically defined disease portfolio for patients in need, strengthen our capital structure and return at least $1.2 billion to shareholders post-closing, achieve capital markets independence and participate in the future success of TIBSOVO® and vorasidenib.” In light of all this, it seems that Agios is kicking into high gear. Accordingly, investors would be inclined to watch AGIO stock closely.
In its third-quarter fiscal released in November, the company reported a 33% rise in total revenue year-over-year. Cash on hand increased by 28% from a year ago. With growing resources and the funds from its recent divestment, Agios appears to have all it needs to execute its current plans. Will this be enough for AGIO stock to flourish in 2021? I’ll leave it to you to decide.