Top Biotech Stocks To Buy Now
Third, companies will find it easier to do trials, as people become more comfortable with visiting clinics and hospitals to receive experimental treatments. Companies that may get a boost from better trial enrollments in key drug development programs include: Incyte INCY, -0.14% in its programs to develop a treatment for the cancer myelofibrosis, and Intra-Cellular Therapies ITCI, -1.65% in its research on Lumateperone for major depressive disorder, according to RBC Capital Markets biotech analysts.
top biotech stocks to buy now
Biotech was in such a freefall that potential buyers just held off, waiting for better prices. Now that biotech stocks are stabilizing and product sales will start showing improvement, buyers will show more interest. Big Pharma certainly has the cash to buy, as you can see from this chart from Jefferies.
In contrast, large pharma wants de-risked, late-stage drug candidates well along in Phase III trials, says Bank of America biotech analyst Tazeen Ahmad. He singles out Alnylam Pharmaceuticals ALNY, -0.40% and Argenx ARGX, -1.76% as favorites for 2022, in part, because they have a lot of potential catalysts. But they also have promising late-stage candidates, which makes them possible buyout candidates.
Michael Brush is a columnist for MarketWatch. At the time of publication, he had no positions in any stocks mentioned in this column. Brush has suggested INCY, ITCI, ALNY, BMRN, MRTX and SAGE in his stock newsletter, Brush Up on Stocks. Follow him on Twitter @mbrushstocks.
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The global biotechnology market was worth $372.8 billion in 2021 and is projected to grow to $1,345 billion by 2030. That 15.5% compound annual growth rate over the next eight years might bode well for your portfolio.
Biotech stocks are currently a strong sector of the stock market. An aging population with increasing healthcare demands, combined with rapidly growing and improving technology, will likely continue to support the growth of biotech stocks. The biotech industry is highly competitive and incredibly diverse, but a few companies have managed to stand out and make a name for themselves.
These top biotech companies are also some of the top stocks to watch in the biotech and life sciences space. For those who are interested in learning more about investing in biotech stocks, these companies are a great introduction to the industry.
The technical definition of biotechnology is to create products by manipulating living organisms. Biotech firms differ from pharmaceutical companies because the pharma industry deals more with chemicals while the biotech sector uses living organisms. That being said, there are plenty of pharmaceutical companies that crossover into biotech (sometimes referred to as biopharma). The more modern interpretation of this centuries-old art still deals with living organisms but has evolved to incorporate ever more complex organisms.
The birth of this modern version of the biotech industry began in 1973, when Stanley Cohen and Herbert Boyer demonstrated DNA cloning. Modern biotech sciences focus on achieving such goals as creating new drugs or growing crops that are resistant to pests. The modern biotech industry affects our daily lives in a variety of different ways, from the foods we eat to the medicines we receive.
The change biotech has had on the agricultural world, though certainly influential, is not nearly as dramatic as it has been on the medical side. That is not to say that biotech has not made some major changes to the agricultural industry. Plant and animal GMOs created by biotechnology are likely the food sources of the future.
The biotechnology industry is a fascinating sector of the stock market. It comes with a large amount of risk, but also a high potential for profit. This industry is highly volatile and many of the technologies being used are highly controversial. On top of the level of volatility created by the nature of the companies and the industry itself, biotechnology stocks can also see volatility based on various regulations and different administrations. For example, if Elizabeth Warren were elected and implemented the promised pricing regulation policies, it could have a very negative impact on big pharma and the biotech industry.
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There are also structural headwinds. The inflationary pressures broadly hitting the economy are also affecting biotech stocks. The cost of running trials has increased, as has the cost of hiring and retaining employees.
Biotech investors waiting for big pharma to come to the rescue may be disappointed. In the 2010s, large pharmaceutical companies tended to focus on big mergers, tax arbitrages, mitigating risk, and putting their massive marketing and sales forces to work. Smaller and more nimble biotechnology companies took the lead in innovation and could count on being bought by larger pharmaceutical firms if they showed meaningful drug development.
But after watching biotech companies win big for a decade, big pharma companies have now pivoted toward innovation themselves and are investing in their own pipelines. Pfizer, for example, shed its big consumer products, generics, and veterinary divisions, and is now focused on creating innovative medicines and vaccines. As a result, big pharma companies have become more discriminating when it comes to buying biotechs. Big pharma business development people now know to carefully check their internal pipelines before holding any serious discussions with biotechs.
The growing demand for efficient and viable drugs, vaccines, and treatments for curing chronic diseases and newly emerging coronavirus variants should accelerate the biotech industry's growth over the long term. Thus, it might be wise to invest in undervalued biotech stocks Regeneron (REGN), Biogen (BIIB), United Therapeutics (UTHR), and Exelixis (EXEL) with immense potential.
The biotechnology industry is currently focused on developing viable drugs, therapies, and devices with the integration of advanced technology to identify and treat chronic, life-threatening diseases. Also, the emergence of new coronavirus variants is incentivizing companies having a COVID-19 related product pipeline to conduct better research and develop new vaccines with high efficacy.
Moreover, regulatory approvals from FDA and EUA and growing investment and policy support from governments worldwide forecast a bright outlook for the biotech industry in the long run. Investor optimism in this space is evident from the First Trust NYSE Arca Biotechnology Index ETF's (FBT) 2.9% gains over the past month versus the SPDR S&P 500 Trust ETF's (SPY) negative returns. The global biotechnology market is expected to grow at 7.7% CAGR and reach $741.7 billion by 2026.
It might be wise to bet on fundamentally sound and undervalued biotech stocks Regeneron Pharmaceuticals, Inc. (REGN), Biogen Inc. (BIIB), United Therapeutics Corporation (UTHR), and Exelixis, Inc. (EXEL) now. The growing investments, advanced R&D, and impressive breakthroughs in the industry should enable these companies to profit substantially next year.
The stock has an A grade for Value and Sentiment, and a B grade for Growth and Quality. Click here to see the additional ratings for REGN's Momentum and Stability. REGN is ranked #6 of 469 stocks in the Biotech industry.
UTHR is a biotechnology company that engages in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases internationally. The company is also engaged in early-stage research and development of several organ transplantation-related technologies, including regenerative medicine, xenotransplantation, and ex-vivo lung perfusion.
EXEL is an oncology-focused biotechnology company that focuses on discovering, developing, and commercializing new medicines to treat cancers. The company's platform also provides therapies to cancer patients with additional treatment options.
BriaCell is an immuno-oncology-focused biotechnology company developing therapies for cancer management. The company's lead drug candidate, Bria-IMT, is targeting third-line advanced breast cancer with fast-track status from the US Food and Drug Administration. Phase I/IIa safety and efficacy clinical trials have shown similar or superior results to other advanced or approved drugs. 041b061a72