Biotech stocks have been the true performer for the year 2020. Amid the ongoing pandemic, top biotech stocks have taken the center stage. Those with COVID-19 programs under development have been reaching new highs. Just yesterday, the fourth COVID-19 vaccine candidate has gone into the final stage of clinical trials in the U.S. as Johnson & Johnson (JNJ Stock Report) announced the start of its Phase 3 trial.
While Johnson & Johnson may be lagging behind Moderna (MRNA Stock Report) and other top COVID-19 vaccine candidates, its single-dose format would give it a huge advantage over the leading vaccine candidates. Note that all other candidates require another booster shot one month after the first dose. The single-dose format will also mean that Johnson & Johnson will be able to get its initial efficacy data more quickly. Should all go well according to plan, its vaccine candidate JNJ-78436735 would be ready in early 2021. But bear in mind that the company is selling it on a not-for-profit basis. So, if you are looking for a potential breakout in JNJ stock from its recent development in its coronavirus vaccine, you may be better off looking at other biotech stocks in the stock market today.
The thing about investing in the best biotech stocks isn’t just about the hype. There have been plenty of biotech stocks skyrocketing this year. While the initial catalyst may have come from speculation stemming from coronavirus vaccines and treatments, investors have learned that there is more to this industry than they have expected. If you have been trading in the biotech space, you would know the trial data, government initiatives and new collaboration would be the key indicators to watch when trading biotech stocks. With all that in mind, and if biotech is still of interest, do you have this list of top biotech stocks to buy?
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First on the list of biotech stocks, AstraZeneca (AZN Stock Report) has been a top biotech stock to buy since it went public nearly three decades ago. The British drugmaker’s share price has been rising consistently for the past few decades. Just this year, AZN stock has gained more than 35% year-to-date. Now, its recent dip could simply be due to one of its trial participants experiencing severe neurological symptoms. But AstraZeneca is still a stable and profitable company, which is why its success is not solely dependent on its vaccine.
No matter what happens with its vaccine candidate, buying shares in established businesses like AstraZeneca could be a smart choice. Its strong pipeline of drugs makes AZN stock one of the best stocks to buy in the stock market. It offers upside with its vaccine candidate.
At the same time, it also has a large portfolio of other drugs to fall back on if the COVID-19 vaccine fails to deliver. With tens of billions of dollars generated from its drug sales annually, the company not only offers a strong dividend yield. It may also offer a steady stock price appreciation if history is our guide.Top Biotech Stocks To Buy [Or Sell] Before October 2020: Vertex Pharmaceuticals
Next up, Vertex Pharmaceuticals (VRTX Stock Report) has got to be one of the most resilient pharmaceutical companies on the market. The company’s stock has consistently outperformed the S&P 500 since the start of this year. While the market sunk to depths in March, VRTX stock only dipped slightly. As of Wednesday’s closing, the company’s shares rose almost 21% year to date. While there are a few reasons for this, Vertex’s main advantage is in its cystic fibrosis (CF) treatments. The company is a leader in treatments for CF and is currently monopolizing the CF treatment. This allows the company to shield itself from the coronavirus pandemic and broader economy. Consumers will still need to depend on CF drugs regardless of the broader state of the economy.
From Vertex’s second quarter, Trikafta brought in a jaw-dropping $918 million in revenue. That’s a 219% increase from the $420 million reported in the fourth quarter of 2019. This came after the drug received FDA approval and became available for purchase. It is worth noting that Vertex’s four approved products (Orkambi, Symdeko/Symkevi, Kalydeco, and Trikafta) are the only drugs available in the market for helping to treat CF.
Despite being such a new drug, Trikafta already accounts for most of Vertex’s product revenue as of today. The revenue posted was rather reassuring during the coronavirus pandemic. After all, many companies could not keep up with their revenue growth. With a stalwart balance sheet, Vertex has the chance to venture into new drug candidates that might potentially serve as growth drivers. With all that in mind, is VRTX stock one of the best pharmaceutical stocks to buy now?Top Biotech Stocks To Buy [Or Sell] Before October 2020: Cassava Sciences
Last on the list, Cassava Sciences (SAVA Stock Report) was the best biotech stock to buy this month. In fact, it was only a biotech penny stock earlier this month. But that’s no longer the case when SAVA stock jumped by a staggering 250% over just the past two weeks. The biotech penny stocks are tilting higher again this week after an insider buy by board member Sanford Robertson.
For those who haven’t come across Cassava Sciences, the company is currently on a strong mid-stage trial for its experimental Alzheimer’s disease medication known as sumifilam. Given the limited options in the Alzheimer’s space, the first drug to slow down or even reverse the disease would almost certainly become a blockbuster. Admittedly, sumifilam is still some distance away from providing conclusive evidence and winning regulatory approval. But the recent insider buy suggests that the board member likely has conviction in the drug’s capabilities.
Now, Cassava doesn’t have the balance sheet to conduct a costly phase 3 trial. Therefore, the company will probably partner with or sell itself to big pharma. It seems like there may still be upside despite the recent run. I am keeping an eye on this one.