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Jan 28

Stock Investment: 3 Biotech Stocks To Consider in 2021

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Have you ever considered investing in the biotech industry?

Not even really sure what that really is?

Well, the biotech industry includes those companies that develop diagnostic compounds and drugs for treating disease and medical conditions. Before the FDA can approve them, the products have to go through costly, vigorous, and time-consuming tests.

Of course, the main focus recently has been rushing to develop coronaviruses drugs. Whilst COVID-19 has been a tragedy for the whole world, fort the biotech industry it has meant the chance to increase revenue.

However, there are those top 3 Biotech stocks that have higher potential, and they include:


1. Moderna

Moderna had a great year after its shares increased by over 430% last year. However, there are reasons to think the stocks will still gain this year as well.

Firstly, Moderna has transitioned from developing a vaccine for coronavirus to selling it. So far they have received orders of over 460 million doses. The prices vary depending on the size of the order, as well as other factors. Considering the US’s price is $15 a dose, it suggests the revenue will reach over $6.9 billion for the first order.

Additionally, the FDA has authorised the use of drugs for those who are aged 18 and above. Moderna has continued researching on teens and, if things go smoothly, will develop a vaccine for the back-to-school age group. It would be a coronavirus vaccine for teens – a solid revenue generator!


2. Vertex

Vertex Pharmaceuticals, a leader in cystic fibrosis treatment, is another company to consider.  According to their recent report, the company expects its market leadership will continue up to the late 2030s.

The significance of this company is that it generates billions. In 2020 it increased in revenue from $5.7 billion to $6.2 billion!

It also sanctioned its stocks last year, after discontinuing alpha-1 antitrypsin deficiency. It lost 20% of stocks in a day, and is yet to recover. This could be a potentially good buying opportunity…


3. Seagen

Many things are happening at Seagen. In less than a year, the Federal Drugs Authority approved two of its drugs: Tukysa and Padcev. Tukyda is a drug that helps treat metastatic HER2-positive breast cancer, while Padcev is for common bladder cancer.

After the launch of these two drugs, there has been a 60% increase in product revenue. It also sells Adcetris, a third product that is essential for Hodgkin lymphoma.

It’s therefore expected the revenue growth will continue with the new products. Tukysa was recommended for approval in the European Union.


The Bottom Line

Last year, the companies that worked on finding a vaccine for coronaviruses gained value in the stock market, and this has helped the biotechnology industry perform outstandingly on the overall market. It’s expected vaccine stocks will extend the market gains as more clinical studies are carried out.

Beyond that, you should consider the above companies as they showed solid product sales, despite, and in some cases because of, the pandemic. If they weathered that storm, there’s a good chance they’ll keep thriving after the situation improves.


None of this is meant as advice, any investment is taken at your own risk, and you should speak to a financial expert before parting with any money. 


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