AbbVie is a drug company with a strong exposure to immunology and oncology. The company’s top drug, Humira, represents close to half of the company’s current profits. The company was spun off from Abbott in early 2013. The recent acquisition of Allergan adds several new drugs in aesthetics and women’s health.
Immix Biopharma (NASDAQ:IMMX)
Immix Biopharma Inc is a clinical-stage biopharmaceutical company developing Tissue-Specific Therapeutics in oncology and inflammation. Its product candidate drug candidates to circulate in the bloodstream, exit through tumor blood vessels and simultaneously attack all components of the TME.
Johnson & Johnson (NYSE:JNJ)
Johnson & Johnson is the world’s largest and most diverse healthcare firm. Three divisions make up the firm: pharmaceutical, medical devices and diagnostics, and consumer. The drug and device groups represent close to 80% of sales and drive the majority of cash flows for the firm. The drug division focuses on the following therapeutic areas: immunology, oncology, neurology, pulmonary, cardiology, and metabolic diseases. The device segment focuses on orthopedics, surgery tools, vision care, and a few smaller areas. The last segment of consumer focuses on baby care, beauty, oral care, over-the-counter drugs, and women’s health. Geographically, just over half of total sales are generated in the United States.
Founded in 1849 and headquartered in New York, New York, Pfizer Inc. discovers, develops, manufactures, markets, distributes and sells biopharmaceutical products worldwide, offering medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, women’s health, infectious diseases with unmet medical needs, COVID-19 prevention and treatment along with potential future mRNA and antiviral products under the Comirnaty and Paxlovid brands. Pfizer also provides medicines and vaccines in various therapeutic areas, amyloidosis, hemophilia, endocrine diseases, and sickle cell disease, sterile injectable and anti-infective medicines and biologics, small molecules, immunotherapies and biosimilars. Pfizer also maintains collaboration agreements with Bristol-Myers Squibb Company, Astellas Pharma US Inc., Myovant Sciences Ltd., Merck KGaA, Valneva SE, BioNTech SE and Arvinas, Inc.
uniQure NV is a gene therapy company. It develops treatment and platforms for patients suffering from genetic and other devastating diseases. Its products and services are focused on hemophilia, Huntington’s disease, and cardiovascular diseases. The company is focused on the development of the pipeline of gene therapies with the collaboration of Bristol Myers Squibb for cardiovascular diseases.
Kiora Pharmaceuticals (NASDAQ:KPRX)
Kiora Pharmaceuticals Inc is a clinical-stage specialty pharmaceutical company. It focuses on developing and commercializing products for treating diseases and disorders of the eye. The products pipeline of the company includes KIO-101, KIO-201, KIO-301, and KIO-102.
Inozyme Pharma (NASDAQ:INZY)
Inozyme Pharma Inc is a rare disease biopharmaceutical company developing novel therapeutics for the treatment of diseases of abnormal mineralization impacting the vasculature, soft tissue and skeleton. The company is focused on developing a novel therapy to treat the rare genetic diseases of ENPP1 and ABCC6 deficiencies. Its product candidate, INZ-701, is a soluble, recombinant, or genetically engineered, fusion protein that is designed to correct a defect in the mineralization pathway caused by ENPP1 and ABCC6 deficiencies.
Quoin Pharmaceuticals (NASDAQ:QNRX)
Quoin Pharmaceuticals Ltd is a pharmaceutical company focused on developing and commercializing therapeutic products that treat rare and orphan diseases. Its pipeline comprises three products that collectively have the potential to target a broad number of rare and orphan indications, including Netherton Syndrome, Peeling Skin Syndrome, Palmoplantar Keratoderma, Epidermolysis Bullosa, and others.
Biotech stocks are in the eye of the storm as the world recovers from the global pandemic. Government institutions and professional traders are banking on biotech stocks to continually develop a vaccine and boosters that can eradicate COVID-19.
Tilt your stock portfolio toward biotech companies now and you could stand to make substantial profits in the near future.
You can also find cost-effective stocks under $20 to trade daily on the stock exchange.
Overview: Biotech Stocks
Biotech companies are a subsector of healthcare stocks that primarily focus on developing new drugs and treatments for medical conditions, diseases and viruses. The stock value and growth potential of a biotech firm depend on the type of diseases it treats. This might also include the research that the firm does as it supports other companies, diseases or treatments.
For instance, a biotech firm working on breast cancer treatments, which has nearly 300,000 new cases in the U.S. each year, might be more valuable than a company that is developing drugs for Ogilvie's Syndrome, a rare disease that only affects 1%–3% of the population.
Every new drug developed by biotech firms has to be submitted to the Food and Drug Association (FDA) for approval. Medical companies spend years developing a new drug but may fail to get it approved by the FDA. Some of these drugs will never hit the shelf of pharmaceuticals even after countless clinical trials. On the other hand, if a biotech company gets a new drug sanctioned by the FDA and the demand is high, the stock value can double or even triple overnight.
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An online broker can help you trade biotech stocks with speed and precision.
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Explore these online brokers to get started today.
Features to Look for in Biotech Stock
- Earnings per share: You can determine the profitability of a company by its earnings per share (EPS). It is calculated by dividing the net income of the company by the total number of its outstanding shares.
- Price-earnings ratio: The price-earnings ratio (P/E ratio) is calculated by dividing the current stock price by its EPS. Based on the P/E ratio, you can assess if a stock is undervalued or overvalued. The lower the P/E ratio of the stock, the better an investment it is. Generally, penny stocks under $5 have the lowest P/E ratios.
- Medical innovation: Biotech firms can spend years conducting clinical trials to test a new drug. Keep a constant watch on any news regarding medical breakthroughs and FDA approvals to make the most of your trade.
- Relevancy: Apart from medical innovation, you need to invest in stocks that are relevant—and continue to remain relevant. Research specifically what these companies do, drugs they’re working on, therapies that they have created and how those ideas remain in the headlines, even if the company is rather old.
Be Patient for Better Profits
Advanced medical technology has led to longer and more fulfilling lives. An investment in biotech stocks involves longer buy-and-hold periods, but if you are patient with your trades, you can strike gold when you least expect it. Remember, the biotech industry can shift very quickly, like during the COVID-19 pandemic. Be patient, do the research and don’t be afraid to exit positions that might not work well for you. Every industry shifts at different times, and that’s why patience is so critical for investors.
Frequently Asked Questions
What is biotech?
Biotech is the area of biology that uses living processes, organisms and systems to manufacture products or technologies. Usually these products are intended to improve human life.
Is biotech worth investing in?
Biotech can be a great long-term investment.
What small biotech company did Jeff Bezos invest in?
Jeff Bezos invested in Altos Labs, which is a startup that concentrates on extending the human life.