Biotech stocks are the stocks of the companies involved in using living organisms for the development of medical and agricultural products. The term is also increasingly used for all the companies that manufacture novel drugs, with or without the use of bio-organisms.
Biotechnology sector and biotech stocks are considered to be highly risky and volatile investments; however, they are still the most rewarding ones. Biotech stocks have almost always beaten the S&P 500 index for the past many years. Thus, biotech stocks turn out to be one of the scariest, riskiest, yet most exciting and rewarding investments.
|VRTX||Vertex Pharmaceuticals Incorporated||$294.39||22.18%||75.6B|
|REGN||Regeneron Pharmaceuticals, Inc.||$750.13||21.39%||81.7B|
|ALXN||Alexion Pharmaceuticals, Inc.||#N/A||#N/A||#N/A|
|BMRN||BioMarin Pharmaceutical Inc.||$110.40||24.73%||20.5B|
|SGEN||Seattle Genetics, Inc.||$137.48||-1.79%||25.5B|
|NBIX||Neurocrine Biosciences, Inc.||$104.14||30.31%||10.0B|
|ACAD||ACADIA Pharmaceuticals Inc.||$19.80||-21.21%||3.2B|
|SRPT||Sarepta Therapeutics, Inc.||$121.08||60.56%||10.6B|
|BLUE||bluebird bio, Inc.||$6.24||-11.24%||642.8M|
|ARWR||Arrowhead Pharmaceuticals, Inc.||$32.46||-37.74%||3.5B|
|FOLD||Amicus Therapeutics, Inc.||$12.59||38.20%||3.5B|
|AGIO||Agios Pharmaceuticals, Inc.||$29.43||-1.90%||1.6B|
|CORT||Corcept Therapeutics Incorporated||$23.52||17.72%||2.5B|
|OPK||OPKO Health, Inc.||$1.30||-59.25%||1.0B|
|ENTA||Enanta Pharmaceuticals, Inc.||$52.84||-13.63%||1.1B|
|FATE||Fate Therapeutics, Inc.||$6.41||-83.79%||622.9M|
|SGMO||Sangamo Therapeutics, Inc.||$3.14||-44.23%||512.9M|
|PACB||Pacific Biosciences of California, Inc.||$10.42||-5.19%||2.6B|
|VNDA||Vanda Pharmaceuticals Inc.||$7.19||-45.53%||406.6M|
|RVNC||Revance Therapeutics, Inc.||$32.95||142.64%||2.7B|
|CTMX||CytomX Therapeutics, Inc.||$2.61||-42.13%||172.8M|
|ADVM||Adverum Biotechnologies, Inc.||$0.66||-58.23%||66.1M|
|RIGL||Rigel Pharmaceuticals, Inc.||$1.65||-35.29%||285.2M|
|XXII||22nd Century Group, Inc.||$1.01||-57.20%||217.5M|
Examples of Biotech Stocks
Biotechnology is a rapidly growing industry that has the potential to revolutionize healthcare and change the way we live our lives. With new technologies and therapies being developed every day, it’s no wonder that investors are looking to biotech stocks as a way to get in on the action. But with so many options to choose from, it can be difficult to know which stocks are the best to invest in.
Below are some examples of Biotech stocks and brief overviews of how the companies operate.
- Moderna Inc. (MRNA) – Moderna is a biotechnology company that specializes in developing therapeutics and vaccines using messenger RNA (mRNA) technology. The company’s most well-known product is its COVID-19 vaccine, which has been authorized for emergency use by the FDA and is currently being distributed around the world. With the ongoing COVID-19 pandemic and increasing demand for vaccines, Moderna’s stock has been on a steady upward trend.
- Gilead Sciences Inc. (GILD) – Gilead Sciences is a biopharmaceutical company that develops and sells drugs for the treatment of viral infections and cancer. The company’s most well-known product is its antiviral drug, Sovaldi, which is used to treat hepatitis C. Gilead Sciences has a strong track record of developing and bringing new drugs to market, making it a solid investment option for biotech investors.
- Vertex Pharmaceuticals Inc. (VRTX) – Vertex Pharmaceuticals is a biotech company that specializes in developing drugs for the treatment of genetic diseases, such as cystic fibrosis. The company’s most well-known product is its cystic fibrosis drug, Kalydeco, which has been approved by the FDA and is currently on the market. Vertex Pharmaceuticals has a strong pipeline of drugs in development, which makes it a good investment option for those looking to get in on the ground floor of a promising biotech company.
- Biogen Inc. (BIIB) – Biogen is a biotech company that specializes in developing therapies for neurological disorders, such as Alzheimer’s and multiple sclerosis. The company’s most well-known product is its multiple sclerosis drug, Tecfidera, which has been approved by the FDA and is currently on the market. Biogen has a strong pipeline of drugs in development, making it a solid investment option for those looking to get in on the ground floor of a promising biotech company.
- Amgen Inc. (AMGN) – Amgen is a biotech company that specializes in developing therapeutics in the areas of oncology, nephrology and inflammation. Amgen’s most well-known product is its biologic therapy Enbrel, used to treat rheumatoid arthritis, psoriasis and other inflammatory conditions. With a strong pipeline of drugs in development and a solid track record of bringing new drugs to market, Amgen is a solid investment option for biotech investors.
About the Biotech Industry
The biotechnology industry is a rapidly growing sector that uses technology and scientific research to develop new therapies, drugs, and medical devices to improve human health. The industry encompasses a wide range of fields, including genetic engineering, biomanufacturing, and regenerative medicine. Biotechnology companies typically focus on researching, developing, and commercializing new products and technologies that have the potential to treat or prevent diseases and improve patient outcomes.
One of the major trends in the biotech industry is the increasing use of genetic engineering and personalized medicine. Genetic engineering is the process of manipulating the DNA of living organisms to change their characteristics. This technology is being used to develop new therapies and drugs that are tailored to the specific genetic makeup of individual patients. Personalized medicine is a medical model that uses an individual’s genetic information to develop personalized treatment plans, which can result in more effective and targeted treatments.
Another trend in the biotech industry is the growth of biomanufacturing. Biomanufacturing is the process of using living organisms, such as bacteria or yeast, to produce drugs and other products. This technology is being used to produce a wide range of products, including vaccines, enzymes, and even biofuels.
Regenerative medicine is another rapidly growing field within the biotech industry. It is a branch of medicine that aims to repair, replace, or regenerate damaged or diseased cells, tissues, and organs using stem cells, gene therapy, and tissue engineering. This technology has the potential to revolutionize the treatment of chronic diseases and injuries, such as diabetes, heart disease, and spinal cord injuries.
The biotech industry is a complex and rapidly evolving field, with new technologies and therapies being developed all the time. This can make it a challenging industry for investors to navigate, but for those willing to take on the risk, the potential for growth and innovation is significant. Some of the major companies in the biotech industry include Moderna Inc, Gilead Sciences Inc, Vertex Pharmaceuticals Inc, Biogen Inc, Amgen Inc, among others.
Factors to Consider Before Investing in Biotech Stocks
There are various aspects that investors need to consider before investing in the biotechnology sector and biotech stocks. There is no doubt that biotech stocks provide high rewards. Biotech stocks have almost always generated very high earnings growth and high overall returns for investors.
However, investors must also be aware of the risks and volatility involved. The success or failure of biotech companies depends on whether the clinical trials fructify or not. Additionally, biotech companies and their stocks are largely affected by regulatory decisions, including FDA approvals.
Therefore, investors must keep track of the current drugs of a company, their efficacy, and the potential pipeline before investing in biotech stocks of a company. Poor selection of stock may lead investors to invest in biotech companies that only end up burning their resources, with no returns in exchange.
Which Biotech Stocks Should I Buy?
To make the selection easier and more effective for you, we have compiled a list of the best biotech stocks. The choice must be made after a thorough analysis of the company, its pipeline, and future potential.
Despite being risky, biotech stocks are the way to the future. The industry is almost recession-proof, and biotech stocks can serve as defensive stocks in the portfolio. Many biotech companies are increasing the sales of their current drugs, while many others are in the process of developing new and revolutionary drugs. The future of biotech stocks is volatile but fascinating.