Are These Trending Biotech Stocks On Your June 2021 Watchlist?
Biotech stocks are one of the most popular stocks in the stock market today. Now, why is that so? Well, largely because most investors are enticed by the idea of a huge profit trade and this sector fits the bill. Of course, when seeking higher rewards, it’s coupled with higher risk as well. This sector can be an amazing opportunity for smart traders. For those who are willing to spend more time researching top biotech stocks, they could be looking at big gains.
Now, let us look at some of the examples to illustrate why this sector is so appealing to investors. Ever since its IPO back in October 2019, biotech company BioNTech SE (NASDAQ: BNTX) has come a long way. The company’s stock has skyrocketed by more than 1400% thus far and this can be attributed to its partnership with Pfizer Inc (NYSE: NFE) for the development of COVID-19 vaccines. Don’t you agree that not many industries would be able to pull this off in such a short period? Well, if this gets you excited, here is a list of the four top biotech stocks in the stock market right now.
Best Biotech Stocks To Buy [Or Sell] In June
- Moderna Inc (NASDAQ: MRNA)
- GlaxoSmithKline plc (NYSE: GSK)
- Reata Pharmaceuticals Inc (NASDAQ: RETA)
- Apellis Pharmaceuticals Inc (NASDAQ: APLS)
First, we have one of the leading biotech companies in the world, Moderna. The company develops therapeutics and vaccines based on messenger RNAs for the treatment of infectious diseases, immuno-oncology, rare diseases, cardiovascular diseases, and auto-immune diseases. Notably, it was also one of the first in the world to receive Emergency Use Authorization (EUA) from the U.S. Food and Drug Administration (FDA) for its coronavirus vaccine.
On Tuesday, the company announced that the Phase 2/3 study of its COVID-19 vaccine in adolescents has met its primary immunogenicity endpoint. According to the study, participants who received two doses of the vaccine using the primary definition showed no cases of COVID-19. In addition, a vaccine efficacy of 93% in seronegative participants was observed starting 14 days after the first dose using the secondary CDC case definition of COVID-19. This is significant as preventing the infection of adolescents holds the same value as any other age group to curb the spread.
Furthermore, Moderna also announced an agreement with Samsung Biologics for the fill-finish manufacturing of Moderna’s COVID-19 vaccine. Due to the high level of urgency in supplying the vaccine globally, this is essential to keep up with its commercial distribution. It is a given that MRNA stock has been one of the hottest stocks in the biotech space, more than tripling in price over the past year. Thus, would you still bet on the future of MRNA stock?
Next in line, we have the global healthcare company, GlaxoSmithKline (GSK). It engages in the discovery, development, manufacturing, and marketing of pharmaceutical products, vaccines, over-the-counter medicines, and health-related consumer products. GSK stock has been trading sideways for the past year. Now, with the company’s progress on its COVID-19 vaccine candidate, could this be a turning point?
On Thursday, the company and Sanofi SA (NASDAQ: SNY) launched a Phase 3 trial for its recombinant COVID-19 vaccine candidate. The study is one of the first late-stage trials that combine tests for boosters and variants as the companies adapt their strategies to deal with an evolving coronavirus. Both companies hope that this will be approved by the end of 2021. Should this come into fruition, it could be a huge boost for the vaccine company.
Most importantly, the company along with Vir Biotechnology, Inc (NASDAQ: VIR) announced on Thursday the U.S. FDA granted a EUA for sotrovimab ( previously VIR-7831), for the treatment of mild-to-moderate COVID-19 in adults and pediatric patients. This is specifically for patients with positive results of direct SARS-CoV-2 viral testing, and who are at high risk for progression to severe COVID-19. We can all agree that while vaccinations remain a priority, treatment for viral disease is of equal importance. With this flurry of development surrounding the company, would this not be a good time to invest in GSK stock?
Reata Pharmaceuticals Inc
Reata Pharmaceuticals is a clinical-stage biopharmaceutical company. The company focuses on identifying, developing, and commercializing product candidates for a range of serious or life-threatening diseases. Its leading product candidates include bardoxolone methyl and Omaveloxolone. Admittedly, RETA stock has been rather underwhelming and trading sideways over the past year. However, it has risen over 35% just in May and soared by 8.45% on Thursday.
This is potentially due to investors responding favorably to the request by the U.S. FDA for the company to submit a request for a pre-NDA meeting for Omaveloxone. Omaveloxone is for the treatment of Friedreich’s Ataxia. The Division of Neurology Products suggested that the company withdraw the current meeting request for a Type C meeting.
Instead, Reata can request a pre-NDA meeting, which the Division will grant upon receipt. This is significant as it could potentially be a big step for the approval of Omaveloxolone. Given that there is no known cure at this point for Friedreich’s Ataxia, approval of this drug would be monumental for the company. Hence, would you consider adding RETA stock to your portfolio?
[Read More] 5 Tech Stocks To Watch In June 2021
Apellis Pharmaceuticals Inc
To sum up the list, we have Apellis Pharmaceuticals. This is a clinical-stage biopharmaceutical company that focuses on the development of therapeutic compounds. APLS stock has been relatively flat since the start of the year. That said, we are starting to see some price action over the past month.
The stock has risen over 20% over the past month. In fact, it soared by 10.06% in Thursday’s trading session. It is safe to say that this can be attributed to its recent development of the drug EMPAVELI™ (pegcetacoplan). A fortnight ago, Apellis announced that the U.S. FDA has approved its leading drug candidate. This is the first and only targeted C3 therapy for the treatment of adults with paroxysmal nocturnal hemoglobinuria (PNH).
On top of that, there was another report on Tuesday that stated positive top-line results from the Phase 3 PRINCE study evaluating the efficacy and safety of EMPAVELI. It appears that 86% of EMPAVELI-treated patients achieved hemoglobin stabilization compared to 0% of patients on standard of care. Therefore, this combined with previous studies emphasizes the potential for the drug to provide disease control for all adults with PNH. So, could now be the right time to take a bet on APLS stock?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.