Are These The Best Biotech Stocks To Buy In 2020?
The coronavirus pandemic has opened a whole new opportunity for biotech stocks. There’s increasing optimism that a coronavirus vaccine could be available by the end of 2020 or beginning of year 2021. This in effect led investors to look for the best biotech stocks to buy before they successfully produce a safe and effective vaccine. While researchers and physicians have learned a lot about the disease caused by the novel coronavirus, there seems to be no end in sight to the ongoing pandemic.
Focus On Late Stage Clinical Studies For Top Biotech Stocks To Buy
According to the World Health organization, as of August 2020, there are 165 vaccine candidates currently in development. But 139 of these are still in the pre-clinical testing stage. Usually most of them would not advance to clinical testing in humans. But not all hope is lost as 26 vaccine candidates are currently in the clinical testing phases. When looking for the top biotech stocks to buy, you may go straight to candidates in phase 3 to reduce your risks.
There are currently 5 COVID-19 vaccine candidates in phase 3 testing. Amongst them are AstraZeneca (AZN Stock Report), Moderna (MRNA Stock Report), Sinovac Biotech (SVA Stock Report) and two candidates from Sinopharm (SHTDY Stock Report). These top biotech stocks are all in their late stage clinical testing, but there are also other notable names that could hold promise even though not in phase 3. They include Novavax (NVAX Stock Report), Pfizer (PFE Stock Report) and Johnson & Johnson (JNJ Stock Report).
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How Soon Can We Expect Vaccine To Be Readily Available
Conventionally, it usually takes a few years to develop a safe and effective vaccine. But because the infection rates and death rates are not showing any signs of slowing down. Many countries have accelerated the timeline greatly to better cope with the rising coronavirus infections.
Of course, no one can be sure exactly when a vaccine will be available. Some experts believe that vaccines could be available by the end of the year. While others think that 2021 is a more realistic and achievable goal. Yet some think that 2 or 3 years from now is the most realistic timeline. The pressure is definitely high on biotech companies as everyone is pinning their hopes on a vaccine yesterday. If we don’t have immunity against the insidious disease, the road to economic recovery may be a rocky one. And if this lasts for an extended period, it is difficult to imagine that most governments will continue to hand out cash. In that case, companies will have no more subsidies and eventually have to wind up their businesses. Of course, we don’t wish to see any of these because it will be catastrophic.
Total Addressable Market Is Huge For Top Biotech Stocks
Essentially every country is still suffering from the coronavirus pandemic. Places where the pandemic had appeared to be contained are now seeing resurgence in cases. Meaning, the total addressable market for vaccines is as large as the global population. We are looking at a potential market size of more than 7.5 billion people. And I wouldn’t bet on one single biotech company to meet the demand of the global population. If you can stomach a high amount of risk, it does make sense to buy a list of late-stage vaccine stocks.