May
13, 2021
6 min read
This story originally appeared on StockMarket
Are These The Best Biotech Stocks To Buy Now?
It is a known fact for investors that biotech stocks are historically volatile in the stock market. Often, the value of the stock is speculative and based on the promise of a new drug or treatment. Until the drug proves viable, receives FDA approval, and hits the market, investing in biotech is almost always a gamble. However, stock prices for these companies are often very low right up until news breaks. Therefore, if you do your research and get in early, it can be very profitable to invest in this sector.
Now, let us take Alexion Pharmaceuticals (NASDAQ: ALXN) and AstraZeneca (NASDAQ: AZN) as examples. In April, there was an announcement that the U.S. Federal Trade Commission has allowed the merger of the two companies. Taking a step further back, the initial agreement for AstraZeneca to acquire Alexion was back in December. The initial announcement has caused Alexion stock to skyrocket by over 30% back then. This goes to show how biotech stock prices respond to news or new developments. Nevertheless, as mentioned earlier, if proper research is done early, it could still be a very profitable sector to invest in. Now if your risk appetite matches the biotech industry, here are some of the top biotech stocks in the stock market today.
Top Biotech Stocks To Buy [Or Sell] Now
Moderna Inc
First on the list, we have the poster child of biotech, Moderna. It is an mRNA vaccine company that has been one of the biggest winners in the stock market during the pandemic. The company is one of the first in the world to receive the Emergency Use Authorization (EUA) from the U.S. FDA for its coronavirus vaccine. In addition, its mRNA science is also contributing to the development of new drugs in the foreseeable future. For example, Moderna is developing therapeutics for infectious diseases, immuno-oncology, and cardiovascular diseases. MRNA stock has risen over 150% over the past year.
Last Thursday, Moderna concluded its vaccine is 96% effective in 12 to 17-years-old and will submit its additional trial findings to the FDA for full approval by the end of May. This was announced along with its first-quarter earnings report. Its COVID-19 vaccine has lifted the company to its first-ever quarterly profit. The company posted revenue of $1.94 billion, from $8 million a year earlier. Out of which, $1.73 billion was attributed to its vaccine sales.
Also, it logged a profit of $1.22 billion, compared to a loss of $124 million in 2020’s first quarter. Therefore, with the company starting to show profitability while demand for vaccines is still high globally, this could come as an opportunity to buy MRNA stock.
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BioNTech SE
Next, we have one of the hottest biotech companies producing COVID-19 vaccine right now, BioNTech. The company generally focuses on patient-specific immunotherapies for the treatment of cancer and other serious diseases.
On top of that, it offers diagnostic products and drug discovery services for the therapeutic areas, including infectious diseases, allergies, and autoimmune disorders. The company is infamous during the pandemic for partnering with Pfizer Inc (NYSE: PFE) for its COVID-19 vaccine. Just in the past month, the company stock has risen by over a staggering 60%. Now let us look at some of the culprits for this bullish run.
Last week, the company announced its first-quarter earnings report and the numbers were outstanding. Revenue surged by a quadruple-digit percentage, largely due to the launch of the COVID vaccine. It reported a $2.49 billion revenue and about $5.34 in earnings per share. The income swung from losses in the year-ago period. So far, the company has signed contracts to deliver 1.8 billion doses of its Covid vaccine in 2021. On top of that, the FDA has also authorized the emergency use of its COVID-19 vaccine for adolescents 12 through 15 years of age. Surely, this is a significant step to combat the pandemic as it protects the younger population as well. In light of this news, would you bet on BNTX stock moving forward?
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Novo Nordisk
Novo Nordisk is a global healthcare company that engages in diabetes care. The company also engages in the discovery, development, manufacturing, and marketing of pharmaceutical products. Novo also offers Saxenda products to treat obesity. In a country such as the U.S. where the adult obesity rate stands at 42.4%, the first time the national rate has passed the 40% mark. Having treatment options for it would be an essential step forward.
Recently, the company launched a once-weekly injectable treatment for Type 2 diabetes that stimulates insulin, suppresses glucagon, and decreases appetite and food intake. Apart from improving blood sugar levels, it also reduces cardiovascular risk by modifying the progression of atherosclerosis. This level of convenience is a huge boost as some patients with Type 2 diabetes have to inject insulin every day.
In addition, in its recent earnings report, the company reported a net profit of $2.03 billion for the first quarter of 2021, an increase of 6% compared to the prior year. Sales also grew by 7%, at $5.45 billion. All things considered, would you be watching NOV stock?
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BeiGene Ltd
Last on the list, we have a company that principally engages with biopharmaceutical business, BeiGene. It mainly engages in the research and development, production, and sales of molecularly targeted and immuno-oncology drugs for the treatment of cancer. The company’s main products include Zanubrutinib (BGB-3111), Tislelizumab (BGB-A317), and Pamiparib (BGB-290). When looking at its performance in the stock market, it has seen significant gains over the past year. BGNE stock has more than doubled in price during that time frame.
Last week, BeiGene received a massive boost as its drug Pamiparib has received conditional approval from the China National Medical Products Administration. The drug is used for the treatment of patients with germline BRCA mutation associated with a recurrent advanced ovarian, fallopian tube, or primary peritoneal cancer with previous exposure to two or more lines of chemotherapy. This is an incredible milestone for the company as it marks the third BeiGene internally discovered and developed medicine to receive marketing authorization.
On a side note, the company announced its first-quarter earnings report last week. BeiGene generated $106.1 million in product revenue, representing a 104% increase compared to the period of the prior year. The growth can be attributed to the continued progress of its product launches, especially the increased patient demand following the inclusion of Tislelizumab drug. With that in mind, would you invest in the future of BGNE stock?