The biotech sector represents companies developing innovative treatments and therapies using biological processes. These firms range from early-stage research companies to established pharmaceutical developers. Biotech stocks offer investment opportunities in companies working on groundbreaking medical solutions. The sector spans various therapeutic areas, from cancer treatments to rare diseases.
Investing in biotech stocks can provide exposure to potentially revolutionary medical breakthroughs. Successful drug approvals can lead to significant returns and long-term revenue streams. Many biotech companies become acquisition targets for larger pharmaceutical firms. However, biotech investments carry substantial risks. Clinical trials can fail, causing stock prices to plummet. The drug development process is lengthy and extremely expensive. Regulatory hurdles can delay or prevent product approvals. Competition is intense, with multiple companies often pursuing similar treatment approaches.
When evaluating biotech stocks, examine the company’s drug pipeline and development stages. Consider their cash reserves and ability to fund ongoing research. Look at partnerships with larger pharmaceutical companies and potential market size for their treatments. Understand the regulatory pathway for their key drug candidates. Be aware that many biotech companies operate at a loss while developing products. That noted, here are two biotech stocks to watch in the stock market now.
Biotech Stocks To Invest [Or Avoid] Now
- Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX)
- Regeneron Pharmaceuticals Inc. (NASDAQ: REGN)
Vertex Pharmaceuticals (VRTX Stock)
First up, Vertex Pharmaceuticals Incorporated (VRTX) is a global biotechnology company focused on developing transformative medicines. They are particularly known for their breakthrough treatments in cystic fibrosis and are expanding into other disease areas. The company combines scientific innovation with commercial capabilities to deliver treatments for serious diseases.
In October, Vertex Pharmaceuticals announced the presentation of their Phase 3 data for suzetrigine at the American Society of Anesthesiologists annual meeting. The data featured their investigational oral pain signal inhibitor for treating moderate-to-severe acute pain. The research included results from two randomized trials and a single-arm safety study. This was the first public presentation of the Phase 3 data since the company announced positive results in January 2024. The research was featured in the “Best Abstract” session of the conference. Vertex reported that the studies demonstrated consistent efficacy and safety across various acute pain conditions.
So far this year, shares of VRTX stock have increased by 15.97% year-to-date. Meanwhile, during Monday morning’s trading session, Vertex Pharmaceuticals stock is trading red on the day by 0.24%, trading at $476.55 a share.
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Regeneron Pharmaceuticals (REGN Stock)
Second, Regeneron Pharmaceuticals Inc. (REGN) is a biotechnology company that discovers, develops, and commercializes innovative medicines. They specialize in treatments for eye diseases, inflammatory conditions, cancer, and cardiovascular diseases. Regeneron has positioned itself as one of the leaders in antibody-based therapeutics.
Earlier this month, Regeneron Pharmaceuticals announced positive Phase 3 data for their drug Dupixent in treating chronic spontaneous urticaria. The study showed significant reductions in itch and hive activity, with 41% of patients achieving well-controlled disease status. The data was presented at the American College of Allergy, Asthma & Immunology 2024 Annual Scientific Meeting in Boston. Regeneron plans to use these results to support a U.S. regulatory resubmission by year-end. If approved, Dupixent would become the first new targeted treatment for chronic spontaneous urticaria in over a decade.
In 2024 so far, shares of Regeneron Pharmaceuticals stock have gained by 3.61% year-to-date. Moving along, during Monday’s mid-morning trading session, REGN stock is trading green up 0.50%, currently trading at $937.66 a share.
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