Are You Looking For Top Biotech Stocks To Buy? If Yes, Are These 2 On Your List?
Biotech stocks have emerged as a popular asset class to watch this year. More specifically, small-cap biotech stocks are making big moves like never before. For this reason, it is gathering a lot of investor attention to find the next big thing to bet on. That’s understandable with everything that’s going on with the COVID-19 pandemic. At the same time, quite a number of otherwise promising businesses have slipped under the radar. The increasing participation in the small-cap biotech stocks space is increasingly evident, especially among Robinhood investors.
Small-cap stocks are famous for their notorious movement in share prices. Some have even returned more than a thousand percent. If you look at some of the top biotech stocks to buy today, a few of them have all started as small-cap biotech stocks this year. And next thing you know, they reached similar valuations as other well-established companies. Amongst them are Moderna (MRNA Stock Report) and Novavax (NVAX Stock Report), just to name a few. If you look at some of the most active biotech stocks in the space, chances of you seeing overnight breakout are common.
That said, if you do the research and studies, with excellent timing, you might gain a thousand percentage gains in a few days’ time. But in most cases, something so speculative might be another pump and dump scheme, where gains quickly become losses.
While looking for biotech small-cap stocks, instead of looking at their quarterly reports, you might be better off keeping track of filings and dates of clinical trials. These will essentially give you the upper hand in trading before the press release. So if you find some biotech stocks you want to add to your watchlist, doing some research could help. That said, let us see if these are the best biotech stocks to buy in August 2020.
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Top Biotech Stocks To Buy [Or Avoid] Among Robinhood Investors: Catalyst Pharma
First, on the list, you could argue that Catalyst Pharma (CPRX Stock Report) was an under the radar biotech stocks. The company’s market capitalization stood at around $370 million. They were under the radar for the right reasons. Revenue and earnings fell year over year in the most recent quarter.
In addition, the company reported disappointing results from a late-stage clinical study evaluating Firdapse in treating patients with neuromuscular disease anti-MuSK antibody positive myasthenia gravis. Last year, the drug also failed to deliver in a late-stage study targeting a rare neuromuscular disorder known as congenital myasthenic syndromes (CMS). But the drug has already received approval in the US and Canada for treating autoimmune disease Lambert-Eaton myasthenic syndrome (LEMS). Although the COVID-19 pandemic negatively affected second-quarter revenue, the company is now seeing some improvement. The company is also seeking regulatory approval for Firdapse in Japan as a treatment for LEMS.
The company also expects to announce results from a phase 1 study later this year evaluating Firdapse in treating spinal muscular atrophy type-3. Furthermore, Catalyst Pharma is exploring opportunities to acquire another product or company. The question is, can CPRX stock see some catalysts in the coming weeks?
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Top Biotech Stocks To Buy [Or Avoid] Among Robinhood Investors: Corbus Pharmaceuticals
Corbus Pharma (CRBP Stock Report) is a clinical-stage drug development company developing medicines for inflammatory and fibrotic diseases. The company’s lead drug candidate is Lenabasum, a potential treatment for systemic sclerosis, cystic fibrosis, dermatomyositis, and systemic lupus erythematosus. Corbus is slated to announce the phase 3 results this summer. Should the data be positive, the company could be in a good position to win big after successful FDA registration.
Besides, the company expects to report topline results from a phase 2b study of lenabasum in treating cystic fibrosis patients at high risk for recurrent pulmonary exacerbation this quarter. It is also aiming to announce topline data from a phase 3 study of the drug in treating autoimmune disease dermatomyositis late next year.
Furthermore, investors could also expect the company to add a few more pipeline candidates on top of the existing ones in the near future. Most of the company’s drugs are still in the R&D stage. Therefore, if you are considering CRBP stock, I would suggest paying close attention to the Lenabasum drug for now. that’s until there are updates from other pipeline drugs.
