Are These The Best Biotech Stocks To Buy Before November 2020?
October 22, 2020 at 08:08 AM EDT
Looking For Top Biotech Stocks To Watch Before November 2020?
Biotech stocks have been riding a wave of success recently in the stock market. Investors looking for high growth investments have been paying attention to biotech stocks in the last few months. The biotech industry has shown tremendous growth in recent years after all. With the development of new technology such as gene editing and more efficient bioreactors, this would be the catalyst to the industry’s growth.
Why are biotech stocks so popular, however? This could hinge on the fact that they offer very big gains in the stock market. With every successful clinical trial, a biotech company’s share price could skyrocket overnight. Of course, there is a big risk at the chance for big gains too. When a clinical trial turns out to be less successful, it could cause a company’s share to plummet as well.
As the COVID-19 pandemic devastates the world, the biotech industry is now at the center of attention. This pandemic has infected over 40 million people and has left 1 million dead so there is an utmost urgency to create a vaccine. Biotech giants like Johnson & Johnson (JNJ Stock Report) and Novavax (NVAX Stock Report) are already in the midst of their crucial Phase 3 clinical trials. With that said, could these 3 biotech stocks be worth adding to your portfolio?
BioNTech SE (BNTX Stock Report) has been in the news for its collaboration with Pfizer (PFE Stock Report) for its COVID-19 vaccine candidate. However, BioNTech is also developing other types of life-saving drugs and treatments. BioNTech specializes in mRNA therapeutics, which is a new form of treatment. It specializes in giving mRNA therapeutically, which can then prompt the body to make its own medicine. It essentially puts a drug factory inside of you to combat diseases.
The company has enjoyed a share price increase of 145% year-to-date and is currently valued at $94.35 per share. BioNTech has amassed enough funding for its R&D operations for the next 24 months. Despite only having a revenue of $49.4 million from collaboration agreements in its second-quarter fiscal, the company has many product candidates in the pipeline with a focus on oncology. Oncology is the branch of medicine that deals with prevention, diagnosis, and treatment of cancer. With the fruition of these treatments and revenue that could follow from BioNTech’s therapeutics, BioNTech stands to make significant gains in the long-term.
For instance, the company’s BNT111 mRNA based FixVac cancer vaccine program has shown a favorable tolerability profile. The Phase 1 data for the vaccine had shown that it mediates a durable response in patients that were given the vaccine. In June 2020, the company had secured a loan financing of $112 million with the European Investment Bank. The loan will allow the company to expand its manufacturing capacity for its COVID-19 drug candidate. Despite being in the developmental stage, could BNTX stock be a top biotech stock to have in your portfolio?Top Biotech Stocks To Buy [Or Sell]: Regeneron Pharmaceuticals Inc.
Regeneron Pharmaceuticals (REGN Stock Report) has been in the news a lot recently. This is due to the anticipation surrounding the company’s experimental COVID-19 treatments. The company’s REGN-COV2 antibody cocktail has been administered to President Donald Trump recently. The president has since recovered from the virus. The company’s antibody cocktail has shown to reduce the viral load and improve the time to alleviate symptoms in patients. Regeneron is also seeking emergency use authorization of the cocktail from the Food and Drug Administration (FDA).
The company, in its second-quarter fiscal, had reported a revenue increase of 24% to $1.95 billion compared to a year earlier. Its drug, EYLEA to treat Age-related Macular Degeneration (AMD) had also netted sales of $1.1 billion in the second quarter. Regeneron reported earnings per share of $7.61. Despite the COVID-19 pandemic hitting the stock market hard this year, REGN stocks have enjoyed a 54% increase in share price year-to-date. That brings its market cap to over $61 billion.
Regeneron also has a lot of happening in its key pipeline progress. The company reported that it currently has 20 product candidates in clinical development. Some of these drugs have shown very promising results so far. The FDA had also approved the company’s Inmazeb drug, which treats Ebola patients. When administered, it reduces the chances of dying dramatically from Ebola. In total, the company currently has 7 FDA approved medicine and an extensive pipeline. This shows that the company has strong fundamentals to rely on. With that in mind, would you consider buying REGN stocks?Top Biotech Stocks To Buy [Or Sell]: Amgen Inc.
It’s been a volatile year in the stock market for biotech giant Amgen (AMGN Stock Report), which has been around for 30 years. With time, comes experience and Amgen certainly has the experience. Despite the impact of the COVID-19 pandemic, the company has also reported a total revenue increase of 6% to $6.2 billion in its second-quarter fiscal. Boasting an impressive line-up of over 30 drugs, the company’s reach in the pharmaceutical industry is a feat not many can achieve.
Sales of its Repatha drug increased 32% year-over-year and is driven by a 69% volume growth. Repatha is used for people with high cholesterol and heart disease. Its best-selling drug is Otezla, generating $561 million in sales in the second quarter and reflects a 14% growth year-over-year. Despite the 3.7% downward trend of its share price after announcing its clinical trials for its new heart drug, Amgen could make a strong recovery. Amgen, being a biotech powerhouse can rely on its key pipeline progress as it continues to innovate and create new drugs.
The company has a pipeline schedule of over 50 programs in clinical testing. Sixteen of these programs are already in their Stage 3 clinical studies. Amgen is also one of the few biotech stocks that pay a dividend. Its dividend yield currently stands close to 2.7%. The company has increased its dividend payout by more than 470% in total since initiating a dividend program in 2011. With its track record, is AMGN stock a defensive stock for your port