Do You Have These Top Biotech Stocks In Your Portfolio?
Biotech stocks have evolved since 2020 began. Now, most of the attention is all on treatments and vaccines for COVID-19. But we must not forget that scientists all over the world are still striving for advancement in drug manufacturing to develop new types of treatment. Human beings are living longer and healthier lives thanks to these scientific advances after all. It would be safe to say that top biotech stocks offer the potential for huge long-term returns. Even an overnight breakout is possible with promising clinical data. With the aggressive development of biotechnology we see today, there are reasons to be hopeful that the biotech industry would continue to thrive.
For instance, Vertex Pharmaceuticals (VRTX Stock Report) is basically the sole provider for the treatment of cystic fibrosis(CF). Getting CF 50 years ago was basically a death sentence. Today, it is treatable thanks to Vertex Pharmaceuticals. Also, they have recently partnered with CRISPR Therapeutics (CRSP Stock Report) to test gene-editing therapies that could help cure rare blood diseases. With so much going on in the space, investors are constantly looking for top biotech stocks to buy that could be the next big thing. That said, do you have these trending biotech stocks on your watchlist?
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The Top Biotech Stocks To Watch In Q4 2020: Intuitive Surgical
Intuitive Surgical (ISRG Stock Report) has been one of the best biotech stocks to buy. Despite reporting less satisfactory first-quarter results due to the COVID-19 pandemic, ISRG stock continues to climb higher. In fact, shares of Intuitive Surgical have moved higher than where it was before the market sell-off. So, what’s driving investors’ enthusiasm in this biotech stock? The reason is that elective surgeries may be delayed in the short term. But eventually, patients will seek treatment as the impairments persist or worsen.
The company specializes in robotic-assisted surgery. Not only will robotic-assisted surgery help reduce error from the surgeon, but the precision of the robot is also unmatched. It is believed that the market is severely underpenetrated due to the high cost of machines. The company also has a competitive advantage over its competitors. The reason being that this company has spent years building instruments and accessories for its da Vinci System. However, it is a matter of time before the costs of parts and materials become cheaper as their technology matures. The company has introduced a flexible payment system to help attract buyers.
Furthermore, the company’s existing customers have a strong financial motivation to maximize their returns on investment with their robotic surgical systems. This would translate into solid growth in the long term. As society ages all over the world and technological innovation expand, robotic surgery applications will continue to fuel Intuitive Surgical’s long term growth.
The Top Biotech Stocks To Watch In Q4 2020: Pfizer
Next up, Pfizer (PFE Stock Report) has made successful gains so far in the race to create the COVID-19 vaccine. They have reached 30,000 participants this week in their phase 2/3 trial testing of their vaccine candidate, BNT162b2, and are expected to enroll another 14,000 participants.
The company’s share price has made a 29% jump since the pandemic as this pharmaceutical giant races to manufacture its vaccine. They have collaborated with BioNTech (BNTX Stock Report) in order to produce this vaccine. BioNTech has recently completed its acquisition of the vaccine plant in Marburg, Germany from pharmaceutical firm Novartis. This would allow BioNTech to produce tens of more million more vaccine doses in a month -pending regulatory approval from next year onwards. The plan is expected to be fully operational by the first half of 2021.
While Pfizer and BioNTech appear to be leading the coronavirus race now, anything could still happen before the finishing line. The companies are currently on track to seek regulatory review on the vaccine in October 2020 and could launch their vaccine by December 2020. This makes Pfizer a very promising stock to watch for long term investors as they set the foundation for manufacturing the COVID-19 vaccine in 2021.
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The Top Biotech Stocks To Watch In Q4 2020: Novavax
Novavax (NVAX Stock Report) is the best performing biotech stock in the stock market year-to-date. The company has witnessed its share price skyrocketed more than 2,400% as of Thursday’s closing. Novavax has reported overwhelmingly positive results for a late-stage study of the experimental flu vaccine NanoFlu. Thus, the company is currently pursuing the Food and Drug Administration for approval of this vaccine Should Nanoflu obtain regulatory approval, the drug could generate sales of up to $1.7 billion.
This isn’t the only vaccine Novavax is pursuing as they too are in the race to develop a COVID-19 vaccine. Their candidate, NVX-CoV2373 have announced positive results from their phase 1 study in August. This prompted analysts to declare this vaccine as the best-in-class among the vaccines under development. They could begin their phase 3 trials this month.
The U.S. Government has recently signed a $1.6 billion agreement with Novavax to fund late-stage development and manufacturing of its COVID-19 vaccine. Therefore, this could poise Novavax for a very successful 2021. Along with the fact that they too are expanding their vaccine production capabilities by announcing a deal with a manufacturer in India to produce a billion doses of COVID-19 vaccines annually. With establishments in eight countries, analysts estimate that Novavax could be producing up to 2 billion doses in 2021. As more evidence suggests that COVID-19 could be seasonal in the future, vaccine availability and efficacy will be crucial as the world adapts to the aftermath of COVID-19.