Are These The Best Biotech Stocks To Buy Right Now?
As we begin another week of trading, the stock market continues to break new highs. In light of this, biotech stocks continue to draw traction among investors. After all, this is an industry that constantly has new developments that would have a significant impact on the health care system. For instance, we saw Pfizer (NYSE: PFE) and Merck (NYSE: MRK) breaking through with the development of antiviral pills against COVID-19. Both companies have shown promising efficacy in trials of adults with COVID-19 who are at high risk of serious illness. Pfizer posted an efficacy of 89% while Merck’s was around 50%. Naturally, these new developments could be a potential game-changer in fighting the pandemic.
In addition, companies dealing with Alzheimer’s disease have also been under the spotlight lately. AC Immune’s (NASDAQ: ACIU) CEO Prof. Andrea Pfeifer expects the number of families that will be affected by Alzheimer’s could nearly triple by 2050 to 150 million. Thus, any new developments in the neurodegenerative disease space would be vital. With all said and done, the biotech industry rarely lacks exciting developments that would pique the interest of investors. With that in mind, here are four of the top biotech stocks in the stock market this week.
Best Biotech Stocks To Watch This Week
- Cassava Sciences Inc (NASDAQ: SAVA)
- Regeneron Pharmaceuticals Inc (NASDAQ: REGN)
- Novo Nordisk A/S (NYSE: NVO)
- Corcept Therapeutics Incorporated (NASDAQ: CORT)
Cassava Sciences
Firstly, we have the clinical-stage biotech company, Cassava Sciences. Essentially, it focuses on developing drugs for the treatment of neurodegenerative diseases, such as Alzheimer’s disease. Its products include Simufilam and SavaDx. SAVA stock has risen by more than 110% over the past week.
This is likely due to investors responding positively to a new development from the Journal of Neuroscience. Last week, the company was informed that there was no evidence of data manipulation in an article it published in July 2012. The article describes a new approach to treating Alzheimer’s disease. “I’ve never doubted the integrity of our people or science,” said Remi Barbier, President & CEO. “We remain focused on conducting a Phase 3 clinical program of Simufilam in people with Alzheimer’s disease. It’s an important endeavor, notwithstanding pundits who may be louder than they are learned. We’ll stay the course until our job is done.”
Well, it started with allegations of data manipulation that caused the company stock to dip in August. One of many claims was altered test images called Western blots. These allegations had such a big impact because the paper was foundational to Simufilam. So, now that these claims have been cleared, the worst could now be behind the company. With that in mind, would you add SAVA stock to your watchlist?
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Regeneron Pharmaceuticals
Another top company in the biotech space right now would be Regeneron Pharmaceuticals. Put simply, the company specializes in medicines for the treatment of serious diseases. Also, it engages in the research, and development of monoclonal antibodies, which consists of Dupixent, Kevzara, and itepekimab. REGN stock has climbed more than 25% since the start of the year.
Earlier this month, the company reported its third-quarter earnings. Its revenue increased by 51% to $3.45 billion. Meanwhile, its GAAP net income was $1.63 billion, an increase of 94% year-over-year. The company says that it enjoyed strong growth in its core business this quarter. With EYLEA and Dupixent reaching more patients than ever, Regeneron appears to be firing on all cylinders to end the year on a high.
Furthermore, there are new additional positive results from a Phase 3 trial that assesses the use of a single dose of investigational REGEN-COV to prevent COVID-19 in uninfected individuals. Now, it shows that it reduces the risk of contracting COVID-19 by 81.6% during the pre-specified follow-up period (months 2-8), maintaining the 81.4% risk reduction previously reported during month 1. So, these results demonstrate that it has the potential to provide long-lasting immunity to those who do not respond to COVID-19 vaccines. Given these exciting developments, would you consider REGN stock as a top biotech stock to watch?
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Novo Nordisk
Novo Nordisk is a global healthcare company that engages in diabetes care. The company also dwells in the discovery, development, manufacturing, and marketing of pharmaceutical products. Novo’s diabetes and obesity care segment covers insulin, GLP-1, other protein-related products, such as glucagon, protein-related delivery systems and needles, and oral anti-diabetic drugs.
Last Friday, the company presented results from the STEP 5 phase 3b trial at the ObesityWeek 2021 interactive congress. It demonstrated that adults treated with Wegovy™ achieved significant and sustained weight loss over the two-year study period. In most cases, people with obesity will often lose track and regain the weight that was previously lost. So, this result would give the company more confidence in better treating obesity as a chronic disease.
It is also noteworthy that Novo also announced a share repurchase program for an amount of up to $576 million. The purpose of the program is to reduce the company’s share capital and to meet obligations arising from share-based incentive programs. Besides that, companies usually initiate a share repurchase program when it feels that the company stock is undervalued. Given these considerations, would NVO stock be worth investing in right now?
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Corcept Therapeutics
To sum up the list, we will be looking at Corcept Therapeutics. In detail, the company engages in the discovery and development of drugs to treat severe metabolic, oncologic, and psychiatric disorders. It does so by modulating the effects of the steroid hormone cortisol. Impressively, CORT stock has risen more than 25% over the past month.
Today, the company started a tender offer to repurchase up to 10 million shares. The share buyback comes close on the heels of a better than expected third-quarter earnings posted last week. For the quarter, the company’s revenue came in 11% higher year over year to $96.1 million. Also, its GAAP diluted net income was $0.24 per share for the quarter. Corcept also ended the quarter with $495.2 million in cash and investments.
The company says that as the pandemic conditions continue to recede, it expects its growth to continue as physicians are seeing their patients more frequently and can diagnose and treat them with Cushing’s Syndrome. Cushing’s Syndrome is a disorder that occurs when the body makes too much of the hormone cortisol over a long period. Accordingly, enrollment continues for its Phase 3 GRACE trial of relacorilant as a treatment for patients with Cushing’s syndrome and it expects a new drug application submission by the second quarter of 2023. All things considered, will you be on the lookout for CORT stock?
