Two biotech stocks to buy fist in February
The stock market worked well in January, as is often the case, but as the dust settles with that early year management, the strategy for long-term investors remains the same. We moved in cooperation with the market in January. A strong (or poor) return for a month makes little sense in the grand scheme of things.
To illustrate that point, let’s discuss two stocks in the biotech industry that have moved in opposite directions so far this year. Apex drugs (NASDAQ: VRTX) and Modern (NASDAQ: mRNA). Here are the reasons why these two companies can generate large returns to patient investors:
Vertex Pharmaceuticals is beginning to the year strongly. January 30th, Company announcement The US Food and Drug Administration has approved Journavx, the first non-opioid oral pain signal inhibitor to obtain a green light from a modulator. Vertex stocks jumped to the news. Given the devastation caused by opioids in many U.S. communities, pain treatment that avoids the potential side effects of opioids meets critical needs.
Furthermore, the apex is currently approved across specialties, which is pain, sickle cell disease (SCD), transfusion-dependent beta-thalassemia (TDT), and of course cystic fibrosis (CF). Vertex still generates a large portion of its revenue from its CF franchises and offers excellent financial results. In the third quarter, the company’s revenues rose 12% year-on-year to $2.77 billion.
Over the next two years, sales from Vertex’s new drugs, including Journavx, next-generation CF therapy Alyftrek, and Casgevy, which treats SCD and TDT, should increase significantly and help improve the already strong sales growth is. Furthermore, the apex can also bring about many clinical advances. The company’s late pipeline includes Inaxaplin, a potential therapy for APOL-1-mediated kidney disease, and Povetacicept, a treatment for IGA nephropathy (chronic kidney disease).
There is no approved treatment that targets the underlying causes of both of these conditions. Vertex Pharmaceuticals has more candidates in early stage research. There are still many top edges left at the vertex Pharmaceuticals. Biotechnology Stock I bought it this month and will keep it for a while.
Modanya is a victim of its own success. Biotechnology was fairly unknown in 2019, but became prominent in 2020 when most other companies of all sizes succeeded in developing a failed project, a Covid-19 vaccine . Modanya has created a small fortune thanks to this achievement, but as the pandemic has set back, its financial results and stock prices have been moving in the wrong direction for most of the three years. Still, there is good reason to expect the company to provide strong returns in the long term.