It is indeed a fact that the biotechnology industry has changed drastically after the Covid-19 pandemic situation. Most of the companies have come up with different drugs and diagnostic technologies in order to treat chronic diseases and infections that also include Covid-19.
Such drugs must go through costly, rigorous, and time-consuming trials that potentially require approval from the U.S. Food and Drug Administration (FDA). This implies that the investors might wait for a couple of years just to know whether a drug under the trial will pay off their efforts or not.
This industry includes a lot of small-scale companies along with well-established corporations which are aimed at developing a wide range of technologies and drugs. In addition, the biotech companies have also shifted their entire focus to Covid-19 vaccines and necessary treatments are also under pipeline. In the past year, biotech stocks that were represented by the iShares Nasdaq Biotechnology ETF (IBB), have calculated a total of 14% return on investment in comparison to the Russell 1000’s total return of 38.3% as of June 3, 2021.
Here is the list of the best biotech stocks having the best value, with the fastest earning and strong momentum.
|Company||Market Capitalization||Primary focus|
|Axsome Therapeutics (NASDAQ: AXSM)||$1.85 billion||Neuroscience|
|Vertex Pharmaceuticals (NASDAQ: VRTX)||$51.8 billion||Rare diseases|
|Regeneron Pharmaceuticals (NASDAQ: REGN)||$81.4 billion||Infectious diseases, eye diseases, and cancerous diseases|
Axsome is a leading drug developing candidate which mainly targets depression and Alzheimer’s patients. The company formally filed for US regulatory approval to treat depression. The company also includes two other candidates AXS-07 for migraine treatment and AXS-14 for fibromyalgia treatment. If approved then it will be a blockbuster drug while speculated to have peak annual sales. The revenue potential for these drugs makes Axsome an attractive biotech stock to buy for the year 2021.
Vertex pharmaceutical is already a profitable business while having a large cash stockpile that can be used to bolster its sales and revenues. The company has launched a new drug having a blend of Kaftrio and Trikafta which could expand Vetex’s fibrosis patient traffic by 50%. This is an attractive scheme for potential investors.
The company has developed a therapy for developing Covid-19 antibodies called REGEN-COV which is the only antibody therapy received by the US Emergency Use Authorization. The company has also partnered with Roche that is also distributing this therapy outside the US. The company also has a lucrative partnership with Sanofi (NASDAQ: toSNY), and other life sciences companies.