4 Top Biotech Stocks To Watch In May 2021
When it comes to high-risk, high-reward investments in the stock market, biotech stocks come to mind. The biotech industry has been notorious for its performance being predicated on its success of clinical trials or updates. A positive clinical outcome or update can bolster the share valuation. But at the same time, a negative outcome or update can cause these stocks to plummet. So, for obvious reasons, it should not come as a surprise that most of the vaccine companies have been doing relatively well in the stock market for the past year.
Take Novavax, Inc (NASDAQ: NVAX) and Moderna Inc (NASDAQ: MRNA) as prime examples. Both companies are known for their research and development of COVID-19 vaccines. Investors who believed in their products would’ve seen significant gains over the past year. However, these companies are not resting on their laurels. Last week, the World Health Organization (WHO) announced that Moderna’s vaccine will be the 5th vaccine to be authorized for emergency use. Likewise, there are also hints from President Joe Biden of Novavax’s vaccine nearing authorization in the U.S. With that said, would you still bet on biotech stocks moving forward? Now let us look at some of the top biotech stocks in the stock market today.Top Biotech Stocks To Watch In May 2021
- BioNTech SE (NASDAQ: BNTX)
- Brooklyn Immunotherapeutics Inc. (NYSE: BTX)
- Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN)
- Regeneron Pharmaceuticals Inc. (NASDAQ: REGN)
First up, we have the German-based biotech company, BioNTech. The company focuses on patient-specific immunotherapies for the treatment of cancer and other serious diseases. In addition, the company offers diagnostic products and drug discovery services for other therapeutic areas including infectious diseases, allergies, and autoimmune disorders. For those unaware, BioNTech partners with Pfizer for its COVID-19 vaccine. The company stock has been on a bullish run since the beginning of the year. It is showing gains of over 120% year-to-date.
On Friday, Pfizer and BioNTech have requested the European Medicines Agency (EMA) to extend the use of its COVID-19 vaccine on adolescents aged 12 to 15. This comes after the trial data showing positive results in this age group. This marks a significant step in expanding access to the vaccine where most other vaccines are only licensed for use in adults.
Furthermore, BioNTech’s CEO is also confident that its vaccine will work against India’s ‘double mutant’ strain. The company has tested its two-dose vaccine, which is currently not available in India, against similar ‘double mutants’. Based on those data, BioNTech is confident that the shot will still be protective. With such exciting developments, would you consider adding BNTX stock to your portfolio?Brooklyn Immunotherapeutics Inc
Next on the list, we have the clinical-stage biopharmaceutical company, Brooklyn Immunotherapeutics. The company focuses on cytokine-based therapies in treating patients with cancer. Brooklyn is developing IRX-2, a cytokine-based therapy, to treat patients with head and neck cancer. If you have been following biotech stocks over the past week, you would’ve noticed that the company is one of the biggest winners. The company share has tripled in value over the past week.
This strong uptrend is likely due to investors responding favorably to several positive news releases by the company last week. One of them is the appointment of Matthew During, M.D., Ph.D. to the company’s Scientific Advisory Board. He was a pioneer in the use of viral vectors for neurological disorders.
Also, last Thursday, the company acquired an exclusive license for mRNA gene editing and cell therapies technology of Factor Bioscience Limited and Novellus Therapeutics Limited. As a result, this puts the company in the picture among key companies exploring gene editing for cell therapies. So, with what seems like big things to come for the company, would you invest in BTX stock?
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Alexion Pharmaceuticals is a biopharmaceutical company. The company focuses on the development and commercialization of therapeutic products. Alexion is best known for the development of Soliris and Ultomiris, drugs used to treat rare blood disorders. It also specializes in research regarding autoimmune diseases. The company’s share is another biotech company that has seen notable gains over the past year. It has risen by more than 60% over the past year. Alexion released its Q1 earnings report last week and it surpassed analysts’ expectations.
The company’s revenue for the quarter rose 13.9% to $1.64 billion from $1.44 billion last year. Also, adjusted earnings rose by 9.2% to $794.4 million. It is also worth noting that its impending merger with AstraZeneca PLC (NASDAQ: AZN) had gained approval from the U.S. Federal Trade Commission in April. This merger will strengthen the combined entity’s position in immunology.
Therefore, the company could be in a good position to build on its success and momentum as the year progresses. With that in mind, will you be watching ALXN stock prior to the completion of the merger?Regeneron Pharmaceuticals Inc
Last on the list, we have Regeneron. The company develops medicines for serious diseases. It has multiple FDA-approved products already in its portfolio along with several candidates in the pipeline. The company’s stock has been moving sideways this year, despite numerous positive updates regarding its pipeline. In March, Regeneron and Sanofi (NASDAQ: SNY) announced positive results demonstrating an overall survival benefit from the Phase 3 trial investigating the PD-1 inhibitor Libtayo monotherapy in cervical cancer patients. Should the drug gain approval, it will offer new hope to those suffering from the disease.
In April, Regeneron announced positive data from a late-stage study of recently infected asymptomatic COVID-19 patients. The results suggest that a single shot of Regeneron’s COVID-19 antibody cocktail enables the prevention of symptoms in 81% of infected individuals.
As we all know, vaccines are not 100% effective and there are people who would reject vaccination. Thus, there is still a need for COVID-19 treatment options. With that in mind, would you consider buying REGN stock ahead of its earnings release this coming Thursday?