Are These The Best Biotech Stocks To Watch This Week?
Why are investors looking for top biotech stocks to buy? We have never been more vulnerable to a massive Minsky moment in the global stock market today. Sure enough, worsening coronavirus resurgence fears kept stock prices jittery. One can ponder upon the uncertain health of the financial markets, giving rise to unprecedented action by the central banks. While most investors focus on economic data, we shall not ignore science. Updates from the biotechnology sector could boost hope for a quicker recovery of the economy.
For investors, there could be no better time to focus on one particular industry that stands to see stock price gains during the pandemic. The biotechnology industry is coming together to work on a vaccine and search for possible coronavirus treatments. To many investors, knowing which industry to focus on gives us a head start. It saves us a lot of time. But it doesn’t stop there. Watching out for opportunities in the market and focusing your attention on the next potential company to break out is crucial.
It is human nature that negative events tend to have a greater effect on trading psychology. This is a manifestation of what is known as loss aversion. This leads us to be blindsided by “the potentials” during this downturn. We’ve seen industries like e-commerce, and even gold stocks, benefit from the recent pandemic. Yet, no stocks have produced bigger gains than biotech stocks. Many are racing to find treatments and vaccines that would potentially end the pandemic. As vaccines are traditionally much more complex to develop, it’s more likely that a successful treatment will be developed. This is considering many treatment candidates for other diseases that appear to show signs of effectiveness against the novel coronavirus. With that being said, are these biotech stocks to buy on your watchlist right now?
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Top Biotech Stocks To Watch 2020: Inovio Pharmaceuticals
First, up the list, shares of Inovio Pharmaceuticals (INO Stock Report) soared on Tuesday. This came after the announcement that it had won a $71 million contract with the US Department of Defense (DOD) to scale up the manufacturing of its Cellectra 3PSP smart devices. INO stocks have been making their investors really happy and excited. And that’s thanks to its impressive development on the vaccine front and new partnership with DOD.
Inovio Pharmaceuticals is one of the best biotech stocks of 2020. In fact, it was one of the most discussed small-cap biotech stocks as far back as December 2019. Fast forward 6 months later, the company is now working on combating the novel coronavirus.
According to Inovio, when INO-4800 is administered with the Cellectra 3PSP device, “the vaccine prompts the body’s immune system to drive a robust immune response”. The device boasts several attractive features, too. For instance, it’s small, portable, easy to use, and able to be “stockpiled in large quantities without maintenance.”
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Top Biotech Stocks To Watch 2020: Translate Bio Inc
Shares of Translate Bio Inc (TBIO Stock Report) jumped as Sanofi (SNY Stock Report) commits $1.9 billion to its Covid-19 vaccine. We can see investors’ excitement as the TBIO stock price increased by 47% as of Tuesday’s close. Both companies have been working together to develop mRNA vaccines for undisclosed diseases since 2018. However, the world took a drastic turn when the novel coronavirus started spreading like wildfire. Since March, the two expanded their partnership beyond the original scope to include the mRNA candidate directed against SARS-CoV-2.
The reason for the spike in TBIO stock price is that Sanofi has taken the collaboration much further. The pharmaceutical giant will give TBIO $425 million upfront for exclusive rights to multiple infectious disease vaccines, including the potential vaccine for Covid-19.
From this latest agreement, TBIO is eligible to receive tiered royalty payments based upon the global sales of any successful vaccines at a discreet percentage. Granted, the Covid-19 vaccine is unlikely to advance to human trials later this year. But there are other infectious disease vaccines that could take the lead when it comes to revenue generation. With a few pipeline products under their belt, TBIO stocks could be one of the top biotech stocks to watch in 2020.
