4 Biotech Stocks To Add To Your Watchlist For August 2021

 

As investors hunt for the next potentially lucrative sector in the stock market, biotech stocks often come into focus. While not the largest industry or the most glamorous, the biotech sector carries the potential for substantial returns. Positive clinical trial results or FDA approvals can send biotech stocks soaring, but delays or negative outcomes can lead to significant downturns. The importance of the healthcare sector has become even more evident in recent times, especially with the global pandemic. Companies like Moderna Inc (NASDAQ: MRNA) and Pfizer Inc (NYSE: PFE) played pivotal roles in developing and distributing COVID-19 vaccines, highlighting the significance of biotech stocks in critical situations. With continued demand for coronavirus vaccines and the possibility of booster shots, these companies have leverage in pricing negotiations within their European Union (EU) supply contracts. Here are four noteworthy biotech stocks to consider:

BioNTech SE

BioNTech, a German biotech company, specializes in the development and commercialization of immunotherapies for cancer and infectious diseases. The company gained global recognition through its partnership with Pfizer in creating a widely used coronavirus vaccine. The stock, BNTX, has surged by over 45% in the past month, primarily due to the growing concerns over the delta variant. The US government recently purchased an additional 200 million doses of their COVID-19 vaccine, bringing the total to 500 million doses. BioNTech has also launched a Malaria project, aiming to develop a highly effective Malaria vaccine and sustainable vaccine supply solutions for Africa.

Zai Lab Ltd

Zai Lab, a China-based biopharmaceutical company, focuses on developing and commercializing therapies in oncology, autoimmune diseases, and infectious diseases. The company recently completed patient enrollment in the Phase 3 registrational clinical trial of sulbactam-durlobactam, targeting carbapenem-resistant Acinetobacter infections. Zai Lab also partnered with MacroGenics to develop preclinical bispecific antibodies in oncology, expanding its innovative oncology portfolio.

Vertex Pharmaceuticals Incorporated

Vertex is a biotech company specializing in therapies for cystic fibrosis (CF). The company recently announced the initiation of a Phase 3 development program for a new investigational triple combination. During the second quarter, Vertex reported an 18% YoY increase in product revenues, reaching $1.79 billion. The company raised its full-year guidance for product revenues to $7.2 to $7.4 billion. Vertex has five programs in mid to late-stage clinical trials, signaling further growth potential.

Veracyte Inc

Veracyte is a genomic diagnostics company that utilizes RNA, whole-transcriptome sequencing, and machine learning to produce genomic tests. Its Decipher Prostate Biopsy genomic classifier has shown promise in guiding treatment decisions for prostate cancer patients eligible for active surveillance. Veracyte reported strong growth in its thyroid and urologic cancer product lines during the second quarter. Total revenue reached $55.1 million, a 166% YoY increase, and the total volume of genomic tests grew by 215% compared to the previous year’s quarter. These biotech stocks represent diverse facets of the industry, from vaccine development to oncology and genomic diagnostics. As healthcare continues to evolve and address global challenges, these companies are well-positioned to play pivotal roles in critical areas of medicine and diagnostics.



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