Top 3 Biotech Stocks To Buy [Or Sell] This Week
Biotech stocks have been the true performer for the year 2020. Amid the ongoing pandemic, top biotech stocks have taken the center stage, with those having COVID-19 programmes under development has reached new highs. On Sunday, the FDA announced the emergency use authorization (EUA) of convalescent plasma therapy, a move that seems to be stoking fears among investors in biotech stocks that are working on the COVID-19 vaccine.
But as we enter the new week, investors are concerned as to why biotech stocks are down. For instance, shares of Novavax (NVAX Stock Report) and Inovio Pharmaceuticals (INO Stock Report) both started the week off on a sour note. This came after reports that President Trump may give out a green light to AstraZeneca’s (AZN Stock Report) experimental COVID-19 vaccine by October. If the approval happens, it would likely occur through the EUA mechanism. Of course, the news sent some of the coronavirus vaccine stocks down. But it shouldn’t be an obstacle for other phase 3 biotech stocks. As such, if you have a high-risk appetite, you might want to consider a list of biotech stocks that might pay off in the long run.
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Top Biotech Stocks To Buy For COVID-19 Vaccine Program: Pfizer
First, on the list Pfizer (PFE Stock Report) has been getting a lot of attention in recent months. This is thanks to its new potential coronavirus vaccine on top of its massive pipeline of drugs. The company is now partnering with BioNTech (BNTX Stock Report) to work on its vaccine. Earlier this month, this partnership revealed that their leading coronavirus vaccine candidate, BNT162b2, appears to be generating antibodies in its study subjects at higher concentrations than those found in patients who have recovered from COVID-19.
Both biotech companies have already enrolled more than 11,000 of the 30,000 subjects it plans to include in the phase 2/3 clinical trial for BNT162b2 that is underway. The drugmakers are hoping they’ll have enough data in October to start seeking a regulatory review.
If the vaccine wins the approval of regulators, Pfizer and BioNTech have said that they could supply up to 100 million doses by the end of this year. That’s enough to vaccinate 50 million people. In the following year, the duo could supply another 1.3 billion doses of the vaccine.
Top Biotech Stocks To Buy For COVID-19 Vaccine Program: Moderna
Next up, Moderna (MRNA Stock Report) started gaining attention beginning this year. That’s after it launched a new effort aiming to produce the novel coronavirus vaccine. Amongst other vaccine makers, Moderna has a big head start in terms of clinical progress. It is deemed to be holding the biggest promise among US vaccine makers.
On top of that, Moderna claims quite a broad pipeline. In its pipeline, the biotech company has three candidates in phase 2 testing. It has the cytomegalovirus (CMV) vaccine mRNA-1647, the personalized cancer vaccine mRNA-4157 in partnership with Merck (MRK Stock Report), and AZD8601, a therapy targeting coronary artery disease, in partnership with AstraZeneca.
Should its coronavirus vaccine candidate fail to meet the demand of regulators for approval, MRNA stock might take a short hit. But the long term potential from its collaboration with major pharmaceuticals could still hold promise.
Top Biotech Stocks To Buy For COVID-19 Vaccine Program: Regeneron
Lastly, investors usually do not consider Regeneron (REGN Stock Report) as a COVID-19 play until recently. The company already has a few products on the market. You could say that makes it superior compared to other pre-revenue biotech companies. Its flagship is Eylea, for the treatment of macular degeneration. It also sells Dupixent for dermatitis, an arthritis drug called Kevzara and a heart drug called Praluent. Eylea alone had $6.7 billion in sales during 2019.
The company isn’t a contender in the vaccine race. But instead, it is working on REGN-COV2, a cocktail of antibodies that could potentially treat the virus. Such antibodies may prevent infection, which would be especially valuable for front-line workers and elderly patients.
This could perhaps be a decent solution while we are all waiting for a successful vaccine. If REGN-COV2 works, the company can obtain $450 million in production funding under the government’s Operation Warp Speed program.