Are These The Best Biotech Stocks To Buy In September 2020?
One of the top sectors to watch has been biotechnology. Obviously, biotech stocks have been on investors’ radar because of the coronavirus pandemic. Apart from that, however, we’ve also got to keep in mind that the space is filled with innovation. Not only are scientists looking for treatments related to COVID-19, but they have also been looking for treatments in other areas. For this reason, investors have been looking for the best biotech stocks to buy, especially for those with potential upcoming catalysts.
For sure, it’s the innovation that has become a catalyst for speculative breakouts and big wins for investors. Something to note with biotech companies is that the road to success can be lengthy. And many of them do not make it to the finish line. However, milestones along the way tend to act as triggers for breakouts and breakdowns. For the veteran investors in the biotech space, you would know I’m referring to the date of clinical trials, FDA reporting dates, government contracts, and other factors that could create excitement in the space.
If you have been following the biotech stocks that are working on COVID-19 related programs, such as Moderna (MRNA Stock Report) or Pfizer (PFE Stock Report), you would know what I’m talking about. With some of the potential vaccines currently undergoing their late-stage studies, are these top biotech stocks on your watchlist?
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Top Biotech Stocks To Buy [Or Sell] Now: Johnson & Johnson
First, up the list, Johnson & Johnson (JNJ Stock Report) announced last week that it will begin the largest late-stage trial testing a potential vaccine in September. The phase 3 clinical trials would enroll up to 60,000 healthy people ages 18 and older across the U.S. and other countries. According to J&J, the vaccine candidate uses the same technologies as its experimental Ebola vaccine. The vaccine combines genetic material from the coronavirus with a modified adenovirus responsible for common colds.
Though better known for its consumer health products, Johnson & Johnson generated half its sales from its pharmaceuticals segment. In addition, nearly one-third of its sales came from medical device sales last year.
Just recently, the company made a massive acquisition to acquire Momenta Pharmaceuticals (MNTA Stock Report) in a humongous $6.5 billion all-cash deal to take a huge leap in immunology. With JNJ stock climbing 5% for the past month, where do you think JNJ stock would be by the end of this year?
Top Biotech Stocks To Buy [Or Sell] Now: AstraZeneca
British drugmaker AstraZeneca (AZN Stock Report) has been generating headlines recently. The company has begun testing an antibody-based cocktail for the prevention and treatment of COVID-19. Currently, the company’s COVID-19 vaccine candidate is in phase 3 testing in Brazil, the U.K., the U.S., and South Africa. A late-stage study could soon start in the U.S.
The company’s vaccine candidate shows promising results in which their participants displayed neutralizing antibodies. All participants showed a T-cell response. A good T-cell response implies the immune system recognizes virus-infected cells and can cause those cells to self-destruct. Investors should bear in mind that there are more than 6 phase 3 vaccine candidates currently in the late-stage trials.
Even if AstraZeneca succeeds in developing the first approved vaccine, other companies could potentially develop more effective vaccines. The good news is that AstraZeneca is a top biotech stock to have, with or without a COVID-19 vaccine. With its large portfolio of drugs, the company’s rising revenue and profits could make for an attractive long term opportunity.
Top Biotech Stocks To Buy Or [Sell Now]: Novavax
One of the hottest biotech stocks in the market, Novavax (NVAX Stock Report) is getting investors all excited again. This came after the biotech company inked a COVID-19 vaccine deal with the U.K. for 60 million doses. Not only that, but Novavax also struck a development and supply deal with SK Bioscience, a subsidiary of South Korean conglomerate SK Group.
Despite rising more than 3,000% at their highest, NVAX stock has recently undergone some pullback. The question here is, should investors buy NVAX stock during the recent dip? Amongst the biotech stocks under the Operation Warp Speed Program, Novavax had the most funding. Some may have seen Novavax as an underdog in the race for a COVID-19 vaccine thus far.
And that’s simply because the company is still in their phase 2 clinical trials. However, the vote of confidence from the U.S. government speaks volumes for the company. With no products commercially available yet, it puts investors at an enormous risk should its vaccine fail to materialize.