Are These The Best Health Care Stocks To Buy Before April 2021?
No matter the state of the world, the health care industry will likely continue to work towards improving our quality of life. With this being the case, it would make sense then that investors are turning to health care stocks even now. For the most part, the biotech industry, in particular, has been put under the spotlight over the past year. Thanks to the sudden need for a coronavirus vaccine, countless people now know more about drug regulatory processes. On top of that, the broader market has not been all that kind to tech investors lately. With all the recent volatility amongst tech stocks, investors would likely be looking towards more defensive plays. This is when health care stocks, which are mostly resilient to the happenings in the world, come into play.
For instance, clinical-stage biotech company Cassava Sciences (NASDAQ: SAVA) is looking at gains of over 1,000% over the past year. This would be thanks to its current work in the field of Alzheimer’s disease treatment. At the same time, vaccine companies such as Moderna (NASDAQ: MRNA) and Novavax (NASDAQ: NVAX) are still holding up. If anything, the ongoing fight against the coronavirus is still one that investors appear to be betting on. If all this has you keen to add some top health care stocks to your portfolio, here are four to consider.
Top Health Care Stocks To Buy [Or Sell] Now
- Aptose Biosciences Inc. (NASDAQ: APTO)
- Neurocrine Biosciences Inc. (NASDAQ: NBIX)
- Koninklijke Philips (NYSE: PHG)
- Biogen Inc. (NASDAQ: BIIB)
Aptose Biosciences Inc.
First up is clinical-stage biotech company, Aptose Biosciences. In brief, the company develops targeted medicines and personalized therapies for the treatment of cancers. Aptose’ therapeutics pipeline consists of products designed to provide “single-agent efficacy” while improving the efficacy of other anti-cancer treatments. In particular, the company is currently working on treatments for specific varieties of leukemia and blood cancers. Given Aptose’s position in the specialized cancer treatment industry, APTO stock could be a viable entry point into the market. This week, APTO stock is looking at gains of over 20% thanks to the company’s latest operational updates.
In detail, Aptose revealed new results from an early-stage clinical study on its acute myeloid leukemia (AML) treatment, luxeptinib. CEO William Rice mentioned that Aptose is “encouraged by indicators of luxeptinib’s anti-cancer activity and safety profile”. Despite the conservative outlook, the study actually revealed that one patient went into complete remission, free of any safety problems.
Additionally, Aptose also mentioned that the drug was “broadly potent against AML cells”. In theory, this could extend the use of the drug to the entire population of AML patients as well. With Oppenheimer analyst Matthew Biegler giving APTO stock an Outperform rating, would you consider investing in it?
Neurocrine Biosciences Inc.
Another health care stock making waves now would be Neurocrine Biosciences. For some context, Neurocrine is a California-based biopharmaceutical company. It mainly focuses on developing treatments for neurological and endocrine-related diseases and disorders. Notably, the company’s diverse portfolio includes FDA-approved treatments for Parkinson’s disease, endometriosis, and other clinical programs in multiple therapeutic areas. Overall, Neurocrine’s treatments target and interrupt disease-causing mechanisms in the nervous and endocrine systems. With such an impressive array of products, I could see investors turning to NBIX stock now.
Diving right into it, news broke of NBIX stock becoming a constituent of the S&P MidCap 400. After the opening bell on March 30, Neruocrine will be replacing O-I Glass Inc (NYSE: OI). No doubt, such positive news would attract investors. Aside from that, Neurocrine also provided top-line results from a Phase 2 study on its Schizophrenia treatment, Luvadaxistat.
Despite there being a negative outcome on its primary objective, secondary results supposedly support further clinical evaluation. With over 20 million people suffering from Schizophrenia worldwide, Neurocrine’s treatment would be met with a large addressable market. Time will tell if the company can pull this off. In the meantime, will you be adding NBIX stock to your portfolio?
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Next, we will be looking at leading health technology company Philips. The multinational conglomerate company’s offerings focus on improving overall health and well-being. Simply put, its comprehensive portfolio consists of solutions for healthy living and prevention, diagnosis, treatment, and even care. Philips can do so by leveraging its advanced health care tech and deep clinical and consumer insights. In terms of its medical equipment products, the company is a leader in the diagnostic imaging, patient monitoring, and health informatics markets.
To put things into perspective, Philips generated over $22.99 billion in sales throughout 2020 with sales and services across 100 countries. More importantly, PHG stock is trading within striking distance of its all-time high seen last month. This does coincide with its latest business update.
To elaborate, Philips reportedly struck a deal to sell its domestic appliances business to global investment firm Hillhouse Capital. The $4.4 billion transaction also allows Hillhouse to use the Philips brand name for 15 years. Should things go as planned, the deal will likely be completed by the third quarter of 2021. CEO Frans van Houten mentioned that this transaction concludes Philips’ major divestments. Moving forward, van Houten said that the company would be focusing on extending its “leadership in health tech” while transitioning towards a solutions company. Could this mark exciting times ahead for PHG stock? I’ll let you decide.
Last but not least, we will be looking at biotech giant Biogen. In particular, the company specializes in the discovery, development, and delivery of therapies for neurological diseases. Historically, the company is one of the world’s earliest biotech companies and its experience can be seen in its leading portfolio. The likes of which consists of medicines to treat multiple sclerosis, and the first approved treatment for spinal muscular atrophy. In terms of its developmental pipeline, Biogen’s most notable treatment now would be aducanumab, an Alzheimer’s disease therapy. While investors could be watching BIIB stock because of that, a recent analyst note could have just made a better case for the stock.
Specifically, Mizuho analyst Salim Syed wrote that two other key updates could boost BIIB stock soon. Firstly, Biogen is awaiting a court ruling regarding the patent protection on its multiple sclerosis treatment, Tecfidera. Having already generated billions in sales revenue for Biogen, Syed suggests that a positive outcome here could boost BIIB stock.
Meanwhile, Biogen is also working on another Alzheimer’s treatment known as gosuranemab. Although it is only in Phase 2 testing, Syed mentioned that the stock could soar on positive top-line results. It remains to be seen whether either of these factors will come into play this year. Would you consider buying BIIB stock?