8 Biotech Stocks to Buy and Hold in 2020

Posted on Friday, March 27th, 2020 by MarketBeat Staff
8 Biotech Stocks to Buy and Hold in 2020Biotech stocks are far from a sure thing. However, towards the end of 2019 several stocks in the sector got a nice lift based on promising new drugs in their pipelines. One of the key ways to measure any biotech stocks is the depth of its pipeline. When a biotech company issues a drug, its stock typically gets a lift because, for a brief period of time, the company has exclusive rights to that stock.

But those rights only last for a period of time. And at that point, generic equivalents can enter the market. Since generic labels typically bring prices down, it can be harmful to the stock unless they have a continuous stream of drugs coming to the market.

And in 2020, the story of biotech companies has been the coronavirus. Several of the leading biotech firms are working either individually or in tandem with other firms to develop vaccines or antiviral therapies to help treat and eventually blunt the spread of the virus which remains foreign to our bodies.

So while a volatile market is typically a clue to stay away from biotech stocks, now may be an ideal time to jump into this sector. And we’ve identified 8 stocks that you can buy today and hold until the end of the year.

#1 - Regeneron Pharmaceuticals (NASDAQ:REGN)

Regeneron Pharmaceuticals logo

Regeneron (NASDAQ:REGN) is one of the most actively traded biotech stocks in 2020. Investors initially traded the stock up when it was named as one of several firms that was developing a vaccine for the coronavirus. However, reality set in when investors realized that a vaccine is months from being approved and ready to deliver at scale.

REGN stock continues to show strength on news that it may have a vaccine ready by August. But that is not certain at all. And the thing with vaccines is that being first is critical.

Investors seem to be digesting that as the stock continues to fight against a level of resistance. Still shares of the stock are up nearly 20% in 2020. And that has a lot to do with the company’s pipeline that includes its headlining drug Dupixent which is used to treat moderate-to-severe eczema. Regeneron may be looking to expand its label for Dupixent in 2020.

Regeneron also continues to show strong sales for Eylea despite the introduction of generic competition and continues to have other drugs in its pipeline.

REGN stock has a P/E of over 23. Analysts have given Regeneron stock a consensus price target of just over $460. However, the two most recent analyst ratings from Oppenheimer and Argus have given the stock price targets of $525 and $540 respectively.

About Regeneron Pharmaceuticals
Regeneron Pharmaceuticals, Inc is a biotechnology company, which engages in the discovery, invention, development, manufacture, and commercialization of medicines. It product portfolio includes the following brands: EYLEA, Dupixent, Praluent, Kevzara, Libtayo, ARCALYST, and ZALTRAP. The firm accelerates the traditional drug development process through its proprietary VelociSuite technologies such as VelocImmune, which uses unique genetically-humanized mice to produce optimized fully-human antibodies and bispecific antibodies.Read More 

Current Price: $652.83
Consensus Rating: Buy
Ratings Breakdown: 13 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $700.69 (7.3% Upside)


#2 - Inovio (NASDAQ:INO)

Inovio Pharmaceuticals logo

Like Regeneron, Inovio (NASDAQ:INO) is working on a vaccine for the coronavirus. And like REGN, the fortunes of INO are largely tied to its success in getting its virus approved first. But also like Regeneron, the company gives investors reasons to be excited beyond its potential to vaccinate against the coronavirus.

In the case of INO, they are working in the field of immunotherapy. They call their process Immuno-Ingenuity. In the company’s own words this is (in part) “the drive to develop novel immunotherapies to fight cancer and infectious diseases.”

Inovio is on the leading edge of the drug market for pediatric brain tumors. This is a market that could be worth $1.65 by 2023. Inovio recently announced that the FDA approved its application to evaluate its drug, labeled INO-3107, which is in development for Recurrent Respiratory Papllomatosis (RPP). This is a rare disease caused by the human papillomavirus (HPV). The disease causes noncancerous tumor growths that lead to life-threatening obstruction of airways. The growths can occasionally progress to cancer.

About Inovio Pharmaceuticals
Inovio Pharmaceuticals, Inc engages in the provision of designed DNA medicines to treat and protect people from infectious diseases, cancer, and diseases associated with human papillomavirus. Its product pipeline include VGX-3100, INO-3107, INO-5410, INO-4800, and PENNVAX-GP. The company was founded by David B.Read More 

Current Price: $7.77
Consensus Rating: Hold
Ratings Breakdown: 3 Buy Ratings, 4 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $14.13 (81.8% Upside)


#3 - Gilead Science (NASDAQ:GILD)

Gilead Sciences logo

Gilead Science (NASDAQ:GILD) is also on the forefront of potential coronavirus treatments. The company is developing an experimental antiviral drug, remdesivir that looks to be a promising treatment. Remdesivir is now in late-stage studies and the company says it could report initial results as early as April.

However, Gilead faces a similar risk/reward dynamic as vaccine candidates. If remdesivir performs well, the stock will also perform well. If, however, the trials do not produce the hoped for results, GILD stock could plummet.

Fortunately, that’s not the only reason to like GILD stock. The company’s pipeline includes two of the premier HIV drugs: Biktarvy and Descovy. Gilead is also part of a duopoply in the treatment of hepatitis C.  

Heading into 2020 Gilead was sitting on $25 billion in cash and investments. This means it will easily be able to continue spending on the research and development it needs to expand its pipeline. And that pipeline includes potentially entering the immunology market with filgotinig, a rheumatoid arthritis drug.

Plus, Gilead pays out an attractive dividend. While they don’t have a long history of increasing the dividend, the company has increased the dividend by over 9% on average the last three years. And with plenty of cash on hand, the dividend looks extremely safe.

About Gilead Sciences
Gilead Sciences, Inc is a biopharmaceutical company, which engages in the research, development, and commercialization of medicines in areas of unmet medical need. The firm's primary areas of focus include human immunodeficiency virus, acquired immunodeficiency syndrome, liver diseases, hematology, oncology, and inflammation and respiratory diseases.Read More 

Current Price: $71.92
Consensus Rating: Buy
Ratings Breakdown: 10 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $109.88 (52.8% Upside)


#4 - Exelixis (NASDAQ:EXEL)

Exelixis logo

Most of the stocks in this presentation have benefited from the coronavirus. Exelixis (NASDAQ:EXEL) has actually been on a roller coaster ride. After riding the market melt-up to a 25% gain, the stock plunged sharply and dropped more than 30% from that high. The stock currently sits about flat for the year.  

But if the company isn’t competing in the coronavirus arena, they are one of the leaders in cancer treatment. While the world’s attention is rightly focused on containing the spread of the coronavirus, cancer is a disease that will be long after a vaccine for this novel virus is found.

The company’s top-selling drug, Cabometyx, is used to treat both kidney cancer and liver cancer. And, it’s becoming likely that the company will be receiving additional approved indications for Cabometyx by the end of the year. More indications mean more prospective patients and more revenue.

And, Exelixis currently has a huge cash position of $1.4 billion. This means the company has plenty of ammunition to develop new drugs or pursue a strategic acquisition.

About Exelixis
Exelixis, Inc is a biopharmaceutical company, which engages in the development, commercialization, and discovery of new medicines for the treatment of cancer. It offers products under the brands of COMETRIQ, CABOMETYX, COTELLIC, and MINNEBRO. The company was founded by Corey S. Goodman and Stelios B.Read More 

Current Price: $20.33
Consensus Rating: Buy
Ratings Breakdown: 8 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $34.67 (70.5% Upside)


#5 - Vertex Pharmaceuticals (NASDAQ:VRTX)

Vertex Pharmaceuticals logo

Vertex Pharmaceuticals (NASDAQ:VRTX) is another biotech company that is not a play on the coronavirus. What sets Vertex apart is its leadership position in the area of cystic fibrosis treatment. The company currently has four drugs that are approved in the United States. Of those four, three of them are also approved in Europe. And the one that has not received approval, Trikafta, is likely to be approved as well and stands to be the biggest seller in the Vertex portfolio.

However, the company is not resting on its laurels. Biotech stocks are not known for issuing dividends because of their commitment to growth. This usually takes the form of acquisition or in developing future drugs. In the case of Vertex, it’s a little of both.

The company spent $950 million to buy Semma Therapeutics last year. This will give the company access to an experimental drug for Type 1 diabetes. The company is also partnering with CRSPR Therapeutics (CRSP) to develop a gene-editing therapy that targets rare blood diseases.

About Vertex Pharmaceuticals
Vertex Pharmaceuticals, Inc is a global biotechnology company. It engages in the business of discovering, developing, manufacturing and commercializing small molecule drugs for patients with serious diseases. The firm focuses on development and commercializing therapies for the treatment of cystic fibrosis, infectious diseases including viral infections such as influenza and bacterial infections, autoimmune diseases such as rheumatoid arthritis, cancer, inflammatory bowel disease and neurological disorders including pain and multiple sclerosis.Read More 

Current Price: $185.79
Consensus Rating: Buy
Ratings Breakdown: 16 Buy Ratings, 4 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $266.61 (43.5% Upside)


#6 - Crispr Therapeutics (NASDAQ:CRSP)

CRISPR Therapeutics logo

Speaking of Crispr Therapeutics (NASDAQ:CRSP), they make the list on their own merits. To say CRSP stock had a good year in 2019 would be an understatement. The stock more than doubled at one point. And although it has come down from those lofty heights, it’s still sitting at about a 30% gain since the beginning of 2019.

Crispr specializes in the field of regenerative medicine and gene editing. This has been a field of intense interest for over 20 years. The possibilities that exist could potentially lead to cures in various diseases.

One reason for investor optimism is the encouraging results for the company’s immune-evasive cell replacement therapy for diabetes. In fact, investors were so optimistic that they essentially turned a blind eye to CRSP launching a $4.3 million stock offering when the stock reached $64.50.

That’s because Crispr is likely to use their $274.1 million windfalls to fund ongoing clinical studies that they are partnering with Vertex Pharmaceuticals (VRTX) to complete.

About CRISPR Therapeutics
CRISPR Therapeutics AG engages in the development and commercialization of therapies derived from genome-editing technology. Its proprietary platform CRISPR/Cas9-based therapeutics allows for precise and directed changes to genomic DNA. The company was founded by Rodger Novak, Emmanuelle Charpentier, Shaun Patrick Foy, Matthew Porteus, Daniel Anderson, Chad Cowan and Craig Mellow in 2014 and is headquartered in Zug, Switzerland.

Current Price: $117.67
Consensus Rating: Buy
Ratings Breakdown: 12 Buy Ratings, 4 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $160.69 (36.6% Upside)


#7 - Co-Diagnostics (NASDAQ:CODX)

Co-Diagnostics logo

If there’s one thing that the coronavirus crisis is teaching us, it’s the importance of testing. And that’s why Co-Diagnostics (NASDAQ:CODX) is having its moment. At one point, CODX stock was trading at over 300% above its pre-correction level. And it all was based on strong demand for the company’s CE-IVD Logix Smart COVID-19 test kits.

CODX was one of the first companies to have test kits available. They initially shipped the kits to four continents, but could not ship kits inside the United States due to Food and Drug Administration (FDA) regulations. However on February 29, 2020 the FDA relaxed its regulations and the company was free to ship the test kits in the United States.

At that time the company could only produce about 50,000 test kits per day. But they expect to get that number up to 150,000 per day when a production facility in India goes online. “Our facility in that country stands to more than triple our manufacturing capacity for this test, especially important to meet potential demand in the eastern hemisphere,” said CODX CEO Dwight Egan.

The stock has not managed to maintain that lofty share price of over $21 per share. But the stock is still above $9 per share. Which is still impressive considering that CODX was trading below $1 per share when the year started.

About Co-Diagnostics
Co-Diagnostics, Inc engages in the development and innovation of molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications. Its diagnostics systems enable very rapid, low-cost, molecular testing for organisms and genetic diseases by automating historically complex procedures in both the development and administration of tests.Read More 

Current Price: $9.65
Consensus Rating: Buy
Ratings Breakdown: 1 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $18.00 (86.5% Upside)


#8 - Amgen (NASDAQ:AMGN)

Amgen logo

There are few slam dunks in the biotech sector, but Amgen (NASDAQ:AMGN) has been pretty close. The stock is down significantly in 2020, but Amgen is simply one of the largest companies in the biotech arena. It has a large, and historically profitable, portfolio, and pays a dividend.

The question for some investors what will Amgen do to combat declining revenue for its signature drugs. To that end, the company is expecting to receive data from various studies in 2020. This data will include results for its promising drug omecamtiv mecarbil, which is a candidate for the treatment of heart failure. According to GlobalData, this could be a $16.1 billion market by 2026.

Another strategy that is working for Amgen is its effort to form collaborations. In the last 10 years, Amgen has expanded its footprint to 100 countries including China and some emerging markets. Its most recent collaboration is with BeiGene (BGNE). The acquisition is a strategic investment in China. BeiGene has strong experience in oncology with both commercial and clinical capabilities.

About Amgen
Amgen, Inc is a biotechnology company, which engages in the discovery, development, manufacture and marketing of human therapeutics. Its products include the following brands: Aranesp, Aimovig, KANJINTI, EVENITY, AMGEVITA, AVSOLA, BLINCYTO, MVASI, Corlanor, Enbrel, EPOGEN, IMLYGIC, Kyprolis, Neulasta, NEUPOGEN, Nplate, Parsabiv, Prolia, Repatha, Sensipar, Vectibix, Otezla, RIABNI, and XGEVA.Read More 

Current Price: $214.19
Consensus Rating: Hold
Ratings Breakdown: 10 Buy Ratings, 10 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $245.21 (14.5% Upside)

 

Every market sell-off creates winners and losers. And this one is no different. Markets are enjoying the stimulus plans that are coming from the United States and other nations. But even this stimulus will only go so far if the coronavirus lives up to the worst-case scenarios of medical experts.

And that’s why now is a great time to look at biotech stocks. Whether you’re looking at stocks of companies that are working on vaccines or anti-virals, or whether you’re just looking to snatch up stocks of quality companies that are selling at bargain prices, you have many options in this sector.

The stimulus package coming from the U.S. government will be sending money directly to companies that are involved in the research and development for vaccines and other treatments that can help the world combat the coronavirus.

But investors have to look beyond this current crisis. Some of the companies that are racing for a coronavirus treatment don’t have anything else in their portfolio. And when it comes to biotech companies, the pipeline is very important. That’s how you get the repeatable and sustainable revenue that drives up stock prices and helps reward shareholders.

7 Fintech Stocks That Will Continue To Disrupt Traditional Banking

In April 2021, JPMorgan Chase CEO Jamie Dimon described fintech companies as one of the “enormous competitive threats” to traditional banking. And with good reason. Fintech (short for financial technology) is not just “digital banking.” It’s a different approach to banking that traditional banks will not be able to replicate by outspending their competitors.

You see, cryptocurrency is getting a lot of attention for the way it’s disrupting the monetary system. But before there was bitcoin (CCC: BTC-USD), there was fintech.

What started out as a way to send money from one person to another without the need for a bank (i.e. peer-to-peer lending) has morphed into much more. Today, individuals and businesses can get loans, invest, and pay bills conveniently and securely. And they can do so without ever having to set foot into a bank.

Financial technology is democratizing finance for many individuals who have been left behind by the traditional banking system. The “unbanked” is a huge target audience. But whereas fintech started as reaching those that were unbanked out of necessity; it is cultivating a new audience among those who are going unbanked by choice.

In this special presentation, we’ll look at seven fintech companies that are leading in this space today and will do so well into the future.

View the "7 Fintech Stocks That Will Continue To Disrupt Traditional Banking" Here.





MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.