The biotechnology industry is composed of a wide range of companies that develop drugs and diagnostic treatment compounds. It is not always easy to find such well-performing companies to invest in because of the rapid volatility. The top-performing biotech companies and stocks do not always have one thing in common.
Wall Street masters’ advice to adopt a very cautious approach when evaluating any biotechnology company. Monitoring the moves of the analyst community can be helpful in understanding where the pros put their trust.
Listed below are some of the top-performing stocks in the biotech sector for the Quarter 1 of 2020. The parameters defining the choice are the best value, earnings growth, and momentum.
Global Blood Therapeutics (NASDAQ: GBT): A wise pick for 2020. It received approval from the U.S. Food and Drug Administration (FDA) ahead of schedule and is regarded as a disease modifier. It treats patients ailing from sickle cell disease by using oxyberta formerly known as voxelotor. The corporate presentation emphasizes increasing awareness and aims to increase the likelihood of patients receiving the drug.
Website: https://www.gbt.com
Portola Pharmaceuticals (NASDAQ: PTLA): Portola’s drug is used to aid patients suffering from uncontrollable bleeding due to blood thinners also known as anticoagulants. Andexxa has received many designations and approvals from the FDA. This one drug has the potential to build a billion worth of market value for Portola.
Website: https://www.portola.com
Tandem Diabetes Care (NASDAQ: TNDM): Shares of Tandem have doubled from what was seen at the beginning of the year. This insulin pump manufacturing company still has a great long term market potential. It aids patients who have Type 1 diabetes by automating insulin dosage and managing blood sugar levels. The market need for insulin pumps is far from the saturation stage and there is plenty yet to be explored by Tandem. The global shipments have seen a 112% jump from last year. A noticed increase in the revenue generated is also remarkable.
Website: https://www.tandemdiabetes.com
Amarin (NASDAQ: AMRN) : Amarin’s fish oil drug called Vascepa is recognized to popularly treat patients. It is used to aid people suffering from elevated levels of triglycerides and not particularly people suffering from cardiovascular troubles. Patients with an exposed risk of stroke or heart attack substantially expand Vascepa’s addressable market. The overwhelmingly positive results of Vascepa is expected to leave the company with increased revenue. It is estimated to peak at the rate of $ 4 billion annually by 2028. It is also effective in lowering LDL cholesterol in patients.
Website: https://amarincorp.com
Galapagos NV (NASDAQ: GLPG): Estimated to have a high year over year earning per share growth. Rising earning bears testimony to the fact that the business is growing and more revenue is being generated. Headquarters in Belgium, Galapagos develops pharmaceuticals for various illnesses such as rheumatoid arthritis, cystic fibrosis, and ulcerative colitis and Crohn’s disease. This company centers on developing and commercializing small-molecule medicines. Earnings are expected to grow at the rate of 12.94% per year but the share price is seen to be extremely volatile over the past 3 months.
Website: https://www.glpg.com
Incyte Corporation (NASDAQ: INCY): Incyte corporation primarily focuses on the discovery, commercialization, and development of drugs for the oncology department. Incyte is now accepting submissions for its recently launched Incyte Ingenuity Award aimed to support people living with the graft-versus-host disease. Each year they are likely to fund up to $ 100000. The consensus is to hold the stock in Incyte Incorporation as ratings have been steady this quarter. The annual earnings per share and sales are also estimated to grow at 4.88% and 13.63% annually.
Website: https://www.incyte.com
Amgen (NASDAQ: AMGN): This biotechnology company provides a diverse variety of solutions to fight infections, migraine, cholesterol, rheumatoid arthritis, and kidney therapy. Active in the merger and acquisition domain, it recently acquired rights to Celgenes Otezla psoriasis drug for $13.4 billion. Amgen pays a handsome quarterly dividend of $1.45 per share. It goes without saying that its stocks are a wise addition to investor portfolio.
Website: http://www.amgen.com
Vertex Pharmaceuticals (NASDAQ: VTRX): Vertex pharmaceuticals is a great company that has made a mark by offering cystic fibrosis treatments and combination therapies. Sales growth has been steady and earnings are following the same upward growth trajectory. Management has hiked the revenue and is looking forward to a very solid 2020 (sales estimated to rise by 26% and earnings up by 39%).
Website: https://www.vrtx.com
Bristol-Myers Squibb (NYSE: BMY): This company is a classic example of the value and total returns. Besides the advantages of solid revenue and earnings growth potential, an attractive dividend of approximately 3% is also there. Bristol-Myers Squibb is a leading provider of pharmaceuticals. The recent acquisition of Celgene is likely to give the company an added revenue of $40 billion and establish number one position in the domain of oncology and cardiovascular drugs.
Website: http://bms.com
Investors look for companies with several drugs in the pipeline and are in stage 2 and stage 3 of clinical research. Phase 2 drugs are definitely risky but they can reap amazing rewards. Analysis of existing drugs and those in the process of development is the best way to research about a biotech company.
From conservative blue-chip companies offering safe returns to high growth stocks with massive upside potential, these are the top 9 biotech stocks to consider from Quarter 1, 2020. Investors who are in the lookout for high portfolio growth will turn to biotech stocks. In comparison to companies in other sectors, the gains and losses vary less on grounds of earning results and more on the key indicators. These key indicators comprise of trail-data verdicts from regulatory agencies. One single positive data can act as a catalyst propelling shares to a new high.