The 5 Biotech Stocks to Invest in Right Now
In these unprecedented times when the stock market’s volatility has been vying for front-page positioning alongside coronavirus updates, those keen to integrate both headline stories will no doubt be looking at biotech stocks for some positivity. I know I have.
Adding biotech stocks to portfolios has not been top of the list for most financial advisers over the last five years as expensive drugs were being used as political footballs and scaring away investors.
Yet, that was not always the case.
In the six years since the financial crisis of 2009 to mid-2015, the iShares Biotech ETF gained 586%, outstripping not only the S&P 500’s 215% gain but also the Technology Select Sector SPDR ETF’s (XLK) 268% rise, as well.
So, biotech stocks do have a good track record in uncertain times.
*DISCLAIMER: The content is for informational purposes only and should not be construed as financial advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Graham Norton-Standen, HIG, Finance Monthly or any third-party service provider to buy or sell any securities or other financial instruments.
For most countries and organisations, COVID-19 appears to still be a level of confusion, uncertainty and loss of direction. Yet I believe this is a fundamental shift which does follow lots of the models related to businesses in need of change and not following where the market is going. For the first time in a long time, it is now all of the world, and all governments and administrations that need to change – and it is the world, the communities and businesses focused on a continuous transitional future that are in charge, and gaining momentum in being ready for where the future appears to be going. Therefore, a lot of the tech, energy and health companies are certainly in the wrong place and the wrong time.
However, some key organisations appear to be in the right place and the right time, so let’s take a look at what those companies might look like.
Those who have that chance appear to be scrambling, but perhaps it’s not them scrambling – perhaps it’s the world around them. Biotechs are the future, and with our overall thoughts and understanding of privacy and what it really does and ‘does not mean’, this will help lead these companies to the future for us.
Privacy is a privilege which we demand all the time, and once we have it, we then give it away in order to gain some other privilege. We will see this happening more in the future as we become happy to give up ‘privilege’ and ‘privacy’ for immunity and freedom to travel.
As companies start coming up with plausible solutions related to medicines, vaccines, and control over what COVID and the future mean to us, let us start by looking at a few targets that may become the next big and future players.
To do this, here is a selection of just a few who may show themselves as the biotechs of the future, or the only stable bodies around a very uncertain world.
- Neurocrine Biosciences
This is THE company to watch. Neurocrine Biosciences is a publicly-traded biopharmaceutical company headquartered in San Diego, California. It develops treatments for neurological and endocrine-related diseases and disorders.
With a recent press release of positive phase-2 data of Crinecerfont and an expected report soon, they also have posed positively throughout the coronavirus pandemic. Shares recently spiked in value with the announcement of phase-2 data and investors are trending on a bullish stance.
- Alexion Pharmaceuticals
Alexion’s mission is to serve people living with rare diseases and the company is also involved in immune system research related to autoimmune diseases. Both have been brought their mission into sharp focus during COVID-19.
Boston-based Alexion suffered a price correction during Q4 2019 mainly due to a patent battle with Amgen over the Alexion drug Soliris. The dark side of the battle led to investors taking a bearish stance and a sell-off caused a large drop in share price. However, positive news recently emerged from both camps of an agreement and this has seen a strong buy. This will certainly be a stock to keep an eye on.
- Fortress Biotech, Inc
Fortress Biotech, which is more colloquially referred to as Fortress Bio, is a biopharmaceutical company that acquires, develops, and commercialises innovative pharmaceutical and biotechnology products. The NYC-based company reported record revenue for Q1 2020, with impressive results across their whole product range along with recently being ranked number 10 in Deloitte’s 2019 Technology Fast 500TM. This is a very good stock to add to a diversified portfolio.
SCYNexis, which delivers innovative anti-infective therapies for difficult-to-treat and often life-threatening infections as well as treatments for several serious fungal infections is on a very strong buy currently with a number of positive reports and good financial results. With such a strong buy, it could be a little late to see a large return on the stocks, but the Jersey-based company is certainly a good performer to place into a structured portfolio.
- Seattle Genetics
Seattle Genetics is a biotechnology company focused on developing and commercialising innovative, empowered monoclonal antibody-based therapies for the treatment of cancer. They are one of my personal wonder companies and recently announced positive results from exploratory analyses of HER2CLIMB for TUKYSATM with patients with HER2-Positive breast cancer. They are performing well and this is a great stock moving at a pace which would well be worth being a bull with.
About the author:
Graham Norton-Standen is the Chairman of HIG. He has served as Chairman, CEO, board member, senior adviser and in other senior capacities for a number of the world’s top companies and fund managers and has influenced and accelerated many start-ups.
He has led or participated as a senior adviser in closing mergers, financing and other complex transactions with an aggregate value exceeding $10 billion, including acquisitions of businesses, hotels, etc., and the privatisation of public utilities.