Looking For The Top Biotech Stocks To Buy In The Stock Market Today? 3 Names For Your Watchlist
As 2021 seems to be off to a wild start, biotech stocks are grabbing the spotlight yet again. This is because these biotech companies continuously strive to come out with effective treatments and vaccines for the various ailments and diseases that plague our world today. Top biotech stocks rallied higher last Friday after Citi upped Regeneron Pharmaceuticals (NASDAQ: REGN) to a Buy rating, citing its eczema drug Dupixent’s significant growth potential.
In 2020, we saw the development of coronavirus vaccines and treatments at breakthrough speeds, bringing a new vaccine to the market just before the year ended. Companies like Moderna (NASDAQ: MRNA) and Pfizer (NYSE: PFE) has created a new type of vaccine to combat the coronavirus. These are known as messenger RNA (mRNA) vaccines. The new method of vaccine development has opened up a whole new level of drug development. Investors who have bet on Moderna shares at the start of last year have seen their position grow by over 400%. The question is, will investors be able to identify the next Moderna?
The NASDAQ Biotechnology Index which consists of biotechnology companies is up by 67% since the stock market crash last March. With so many new game-changing treatments and drugs in development right now, there is a lot of potential for the industry. As these biotech companies continue to improve our quality of life, there are still plenty of opportunities for investors to jump on the biotech bandwagon. With that in mind, here is a list of top biotech stocks that could be worth adding to your portfolio this month.
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Best Biotech Stocks To Buy [Or Avoid] Right Now
- AstraZeneca (NASDAQ: AZN)
- Eli Lilly and Company (NYSE: LLY)
- Exact Sciences (NASDAQ: EXAS)
AstraZeneca
AstraZeneca is a multinational biotech company that is based in the United Kingdom. The company boasts an impressive portfolio of products for major disease areas including cancer, cardiovascular, respiratory to name a few. AstraZeneca today applied for emergency-use authorization in Europe for the coronavirus vaccine that it developed with the University of Oxford. This could see the company rolling its vaccine to the masses by February this year. The European Union (EU) has already preordered 300 million doses of the company’s vaccine with an option for 100 million more.
How has the company been doing financially? By looking at its latest quarter financials that was posted in November, we could get a clearer picture. AstraZeneca reported total revenue of $6.57 billion for the quarter, a 10% increase from a year earlier. Its new medicine segment was a major contributor to its revenue, at about $2.6 billion. The company also posted earnings per share of $2.95, up by 16% year-over-year. Unsurprisingly, the company also saw strong revenue performance across its Oncology and Emerging markets segments.
Aside from the EU, the company has also been granted emergency use authorization for its vaccine in India, Argentina, Mexico, and Morocco for the active immunization of adults. To tackle the logistics of supplying its vaccine to India, the company has partnered with Serum Institute of India (SII), the world’s largest vaccine manufacturer. This partnership will also allow AstraZeneca’s vaccine to many low and middle-income countries. Will this be enough for you to buy AZN stock?
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Eli Lilly and Company
Another biotech company that has been hot in the news lately is Eli Lilly. The company’s shares are up by about 12% on Monday. This was after announcing its experimental Alzheimer’s drug significantly slowed the rate of decline in patients. In its Phase 2 trial, the drug Donanemab slowed the decline of a composite measure of patient cognition and function by 32%, relative to placebo in patients with early Alzheimer’s. As at 10:35 a.m. ET, the stock has taken a breather, falling over 3%.
In the company’s third-quarter fiscal posted in October last year, Eli Lilly reported a total revenue of $5.74 billion. The company also reports a net income of $1.208 billion or earnings per share of $1.33. These figures are impressive despite the implications brought by the pandemic last year. Eli Lilly also reported that its key growth products such as Taltz and Tyvyt contributed about 9 percentage points of revenue growth. This also represented approximately 52% of total revenue for the quarter.
Yesterday, the company announced that the U.S. Food and Drug Administration (FDA) has accepted a supplemental New Drug Application for Jardiance. The new drug could reduce the risk of cardiovascular death and hospitalization for heart failure. A high unmet need remains in the treatment of heart failure, as approximately half of those diagnosed are expected to die within five years. This drug could be life-changing as heart failure is also the leading cause of hospitalization in the U.S. With such exciting developments surrounding the company, will you consider LLY stock as a top biotech stock to buy?
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Exact Sciences
Exact Sciences is a biotech company with a leading portfolio of products for earlier cancer detection, treatment, and monitoring. The company is based in Wisconsin and has been relentlessly pursuing life-changing answers in cancer detection. The company’s share price is up by over 8% on Monday alone. It is up another 3% as at 10:50 a.m. ET.
The company on Sunday announced its preliminary fourth-quarter results, causing investors to flock into buying its shares. Exact Sciences expects total revenue of $464.5 million to $467.5 million. A majority of this revenue is from its Screening segment, which includes Cologuard. Cologuard is a multitarget stool DNA test that is developed as a highly effective cancer screening test. In addition, the company also offers the Oncotype DX, a breast, and prostate cancer test.
“I’m incredibly proud of how the Exact Sciences team came together during 2020 to make progress towards our mission of eradicating cancer and the suffering it causes,” said Kevin Conroy, chairman, and CEO of Exact Sciences. “Following our combination with Thrive, we are confident in making blood-based, multi-cancer screening a reality and being a leading provider of earlier, smarter cancer tests for patients at every step of their journey. We’ve never been more excited about the impact Exact Sciences will have on patient lives with Cologuard, Oncotype, and our future tests.” All things considered, will you add EXAS stock to your watchlist?
