This article written by Usman Kabir looks at the 10 Best Biotech Stocks to Buy for 2021.
During the last year, many investors rushed into biotechnology stocks in anticipation of a major breakthrough in the field of vaccine research. However, as the COVID-19 pandemic progressed, many of these stocks lost their value.
Due diligence in the biotechnology industry is often necessary. There are many factors that investors need to consider before buying or selling stocks.
Few industries can boast of multiple product offerings that have valuations of several million. In the biotechnology industry, one product can turn a firm’s fortunes around overnight.
The profitability of the biotech industry is largely dependent on the development and approval of new drugs and technologies. Due to the nature of the industry and its rigorous regulatory processes, many firms struggle to turn profitable.
Since the outbreak, many biotech companies shifted their focus away from developing other products and towards coronavirus vaccines. This has resulted in some of them returning lower than expected returns for the year. However, with the economy improving, these firms are expected to bounce back to pre-pandemic highs.
Despite the positive sentiments surrounding the biotechnology industry, it’s still important to do your due diligence before investing in stocks. Over the last decade, the reputation of the hedge fund industry was tarnished due to its unhedged returns. Despite this, our research shows that, through the end of February 2021, stocks of these select groups returned 197.2%, which is higher than the S&P 500 index, which returned 72.4% during the same period. Here are some of the best Biotech Stocks to look out for.
Seagen is a biotechnology company focused on developing new cancer therapies. Its goal is to stop the spread of the disease through the use of a monoclonal antibody and also focuses on developing antibody drugs for the treatment of cancer.
Novavax is a drug company focused on developing vaccines and adjuvants. It is developing various products for various infectious diseases. Its shares shot up 9% after the company released positive data on its ability to protect against new strains of the virus.
Regeneron Pharmaceuticals is a drug firm that focuses on developing and manufacturing medicines for various conditions. Some of its products include Eylea for the treatment of Eylea disease, Dupixent for the treatment of an inflammation condition, and Libtayo for the treatment of cancer.
Sanofi is a French healthcare firm that focuses on developing and manufacturing medicines and vaccines for various diseases. It has collaborations with other drug companies for producing its products.
The company had previously announced that it would sell its anti-inflammatory drugs business to an Italian firm for around $6 billion. The move was carried out to rationalize the company’s portfolio.
Through its partnership with several countries, Pfizer was able to successfully market the coronavirus vaccine. This is expected to increase the company’s share price further as the US government prepares to ramp up its production of the vaccine.
Since childhood vaccines are one of the most challenging components of keeping children healthy, AstraZeneca has released a study that shows that its vaccine is highly effective in preventing illness in infants and young children.
Read on more of such companies to look out for in 2021 here.