As the broader stock market continues to show signs of caution, biotech stocks continue to offer their high-risk, high-reward potential. Biotech is a multi-billion industry with countless trials and FDA approvals involved. Each stage and interim progress along the way can become a catalyst for biotech stocks. A positive outcome or update can lead to a boost in shares. But a negative outcome or update can be detrimental to biotech stocks. Thus, careful due diligence could allow investors to manage their risk in this sector.
Even now, biotech stocks such as BioNTech SE (NASDAQ: BNTX) and Johnson & Johnson (NYSE: JNJ) play important roles in combatting the pandemic. More and more countries are giving approvals to the vaccines that these biotech companies offer. For example, Iran’s new government has approved the use of JNJ’s COVID-19 vaccine in an attempt to fight off the fifth wave of infections. Given these circumstances, it is understandable why investors are eyeing some of the top biotech stocks in the stock market today.Best Biotech Stocks To Watch Right Now
- Moderna Inc (NASDAQ: MRNA)
- AbCellera Biologics Inc (NASDAQ: ABCL)
- Pfizer Inc. (NYSE: PFE)
- Zymeworks Inc (NYSE: ZYME)
First up, we will be looking at Moderna. Essentially, it is a biotech company that utilizes messenger RNA (mRNA) science to treat a broad spectrum of diseases across six modalities. A modality is a family of potential mRNA medicines that are consistent in both design and how and where they are delivered in the body. This would include cancer vaccines and prophylactic vaccines. For obvious reasons, MRNA stock has been on the top of many investor’s watchlists.
On Thursday, Moderna announced Health Canada has approved the New Drug Submission (NDS-CV) for SPIKEVAX™. This is the company’s coronavirus vaccine for active immunization to prevent COVID-19 in individuals 12 years of age and older. The approval comes after the vaccine demonstrated an efficacy of 93% in the Phase 3 COVE study data. Well, this development is significant as it marks the first full approval for SPIKEVAX.
Besides that, the company also recently highlighted a new analysis that suggests its vaccine is highly effective against circulating variants of concern. Furthermore, the company shared a new analysis of follow-up through 1 year in the Phase 3 COVE study suggesting a lower risk of breakthrough infection in participants vaccinated more recently compared to participants vaccinated last year. These are encouraging data for the company and would certainly play a role in combatting the pandemic. Given these exciting developments, would you add MRNA stock to your watchlist?Source: TD Ameritrade TOS
Read MoreAbCellera Biologics Inc
Following that, we have the tech company with a centralized operating system for next-generation antibody discovery, AbCellera. In detail, the company searches, decodes, and analyzes natural immune systems to find antibodies that its partners can develop into drugs. ABCL stock has risen approximately 20% during pre-market trading today. So let us see what is acting as the catalyst for this movement.
For starters, the AbCellera announced today that the U.S. FDA has expanded the Emergency Use Authorization (EUA) for bamlanivimab (LY-CoV555) 700 mg administered with etesevimab (LY-CoV016) 1400 mg to include post-exposure prophylaxis (PEP) to prevent symptomatic COVID-19. These antibodies have shown to be effective against the highly contagious Delta variant. So, we will now have more protection options for a significant number of people who may be still vulnerable to COVID-19.
Not to mention, the company announced that it has acquired TetraGenetics, Inc earlier this week. TetraGenetics is a biotech company with a proprietary platform for generating recombinant human ion channels and other transmembrane proteins Together, it will provide an optimized protein source for AbCellera’s antibody discovery. Hence giving rise to the potential to unlock the discovery of antibody therapies across a range of therapeutic areas. With all the buzz around the company now, would you jump on the ABCL stock bandwagon?Source: TD Ameritrade TOS Pfizer Inc
Another top biotech company that needs no introduction would be Pfizer. The company is a multinational pharmaceutical and biotechnology corporation with headquarters in New York City. Its portfolio of medicine spans many medical fields. Pfizer actively collaborates with health care providers, governments and local communities to support and provide access to health care. PFE stock has risen more than 25% over the past year.
Last week, the company along with Myovant Sciences (NYSE: MYOV) announced that the U.S. FDA has accepted the review of its supplemental New Drug Application (sNDA) for MYFEMBREE. The drug is for the management of moderate to severe pain associated with endometriosis. Once approved, both companies believe that the drug will have the potential to redefine care for women with endometriosis.
On top of that, Pfizer also announced that the UK Medicines and Healthcare products Regulatory Agency (MHRA) has granted Great Britain marketing authorization for CIBINQO (abrocitinib). The drug is used for the treatment of moderate to severe atopic dermatitis in adults and adolescents aged 12 years and over. In fact, this is the first marketing authorization worldwide for this treatment. All things considered, do you still view PFE stock as an attractive opportunity?Source: TD Ameritrade TOS Zymeworks Inc
Zymeworks is a clinical-stage biopharmaceutical company that specializes in bio-therapeutics for the treatment of cancer in Canada. It operates through a number of platforms, including Azymetric, and ZymeLink. As of now, the company’s lead product candidates are zanidatamab for the treatment of biliary tract, gastroesophageal adenocarcinomas, and breast cancer, and ZW49 for the treatment of advanced HER2-expressing tumors.
Yesterday, the company presented encouraging early data on zanidatamab at the European Society of Medical Oncology Congress 2021. The data was derived from a clinical study of 36 patients with HER2-expressing Gastroesophageal Adenocarcinoma (GEA). The drug in combination with chemotherapy showed a Confirmed objective response rate (cORR) of 75% overall and 93% for the proposed Phase 3 regimen (zanidatamab + CAPOX/FP).
Furthermore, the treatment is generally well-tolerated, with the majority of treatment-related adverse events considered mild to moderate. Despite the advancement in the health care industry, metastatic HER2-expressing GEA remains a difficult condition to treat. Therefore, the data presented demonstrate the potential of zanidatamab in the first-line setting and a new treatment option that is desperately needed. Given these considerations, would you say that ZYME stock is a top biotech stock to watch now?Source: TD Ameritrade TOS