The biotechnology sector is an innovative and dynamic area of the stock market, primarily focused on using biological systems and organisms to develop new products and technologies. Companies in this sector engage in a wide range of activities. This includes drug development, genetic research, and agricultural improvements. The sector is driven by scientific advancements and is key in addressing some of the most pressing health and environmental challenges. Biotech companies range from small startups focusing on specific research areas to large, established firms with diverse product portfolios.
Investing in biotech stocks offers the potential for significant returns, especially for companies that successfully bring new treatments and technologies to market. The sector’s continuous innovation can lead to groundbreaking products, which can substantially increase a company’s value. However, the biotech industry is also high risk. The lengthy and expensive process of drug development, which includes rigorous clinical trials and regulatory approval, can impact investment returns. The success of biotech companies often hinges on the outcome of these trials and approvals, making investments highly speculative.
For investors, the biotech sector requires a thorough understanding of the science behind the companies, as well as the regulatory environment. While the potential for high returns is attractive, the inherent risks that connect with the sector cannot be overlooked. Considering this, here are two biotech stocks to watch in the stock market right now.
Biotech Stocks To Invest In [Or Avoid] Now
Eli Lilly & Co. (LLY Stock)
Starting off, Eli Lilly and Company (LLY) is a global pharmaceutical company with a significant focus on human pharmaceuticals and animal health products. Eli Lilly has been a pioneer in drug development, particularly known for its contributions to insulin and antidepressants. The company has a strong emphasis on research and development in areas such as oncology, endocrinology, and mental health.
On Thursday, Eli Lilly & Company announced the launch of LillyDirect™, a new digital healthcare platform for U.S. patients with obesity, migraine, and diabetes. This innovative service aims to simplify disease management by providing resources like access to healthcare providers, tailored support, and direct home delivery of certain Lilly medications through third-party pharmacy services.
In the last six months of trading action, shares of LLY stock have increased by 34.56%. Meanwhile, during Thursday morning’s trading session, Eli Lilly & Co. stock is trading green off the open by 1.68% at $628.28 a share.
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Pfizer (PFE Stock)
Next, Pfizer Inc. (PFE) is one of the world’s largest pharmaceutical companies, engaged in the discovery, development, manufacture, and distribution of healthcare products. Pfizer has a diverse product portfolio. This includes blockbuster drugs in various therapeutic areas, such as immunology, oncology, cardiology, and neurology.
Last month, Pfizer announced an increase in its quarterly cash dividend to $0.42 per share for the first quarter of 2024. This dividend, payable on March 1, 2024, to shareholders of record as of January 26, 2024. This marks the 341st consecutive quarterly dividend paid by the company. Additionally, this represents the fifteenth consecutive year of dividend increases.
Over the last six months of trading action, shares of PFE stock have pulled back by 19.28%. Moreover, over the past five trading days, Pfizer stock has started to rebound by 2.66%, opening Thursday’s trading session at $29.37 a share.
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