Change is inevitable in every aspect of life because it results from human exploration and applying knowledge to improve life quality. This is why many industries have shown significant growth with time, and the biotech industry is one of them. The biotech industry has extraordinarily impacted healthcare, biological science, economy, and business in recent years. The plethora of biotech stocks continuously put their efforts into developing therapeutics and vaccines that are effective and less toxic, and easily accessible for individuals. With the rise of COVID-19, the Biotech industry has gained more importance. Many biotech stocks have developed and commercialize vaccines in the battle against the deadly pandemic. Now many investors are looking for biotech stocks to get high profits in the future. Here are the 7 biotech stocks to buy in 2021.
The first and foremost stock to watch in 2021 is Pfizer (PFE), one of the first biotech stocks to market the COVID-19 vaccine. Since then, it has contracted with many governments and supplied millions of doses and looking forward to providing more than this in the future. The U.S government has a plan to vaccinate all of its adult population, and Pfizer is likely to contribute a lot to this cause. While many other biotech stocks only focus on older patients, Pfizer is also developing a COVID-19 vaccine for children, which is another positive sign for future growth. The company has a market cap of more than $220 billion and annual revenue of more than $40 billion. Hence Pfizer stock can be a good bet in 2021.
Regeneron Pharmaceuticals (REGN)
The second stock that could prove fruitful for investors in 2021 is Regeneron Pharmaceuticals(REGN). The company has a market cap of more than $55 billion and is engaged in discovering, developing, and manufacturing various therapeutics to treat medical conditions worldwide. One of the two authorized antibody treatments to treat COVID patients belongs to Regeneron. Its recent first-quarter results show that its quarterly revenue showed 38% growth year over year. Its COVID-19 antibody treatment alone generated $262 million in the first quarter of 2021. Besides this, Eylea, a drug to treat eye diseases, also impacts its increased sales over time. Hereafter, investors need to keep an eye on this stock.
On Number three, we have Novavax (NVAX). It is another biotech stock engaged in the development of commercialization of vaccines to prevent infectious diseases. Novavax has significantly outperformed in the COVID-19 era and still giving a tough time to its competitors. Its COVID-19 vaccine candidate NVX-CoV2373 could bring massive profits in the future. Novavax is about to finalize the major supply deal with the European Union, which means the supply of 500 million or more doses. So, a lot of money on the line is expected for Novavax stock.
Moreover, it has also inked supply deals with many countries in which India is also included, which has more than 1.3 billion population. Novavax generated a breathtaking $447 million in revenue in the first quarter of 2021 compared to $3 million in the same quarter of last year. This significantly increased revenue shows its success over the year. In a nutshell, investors should keep an eye on this stock.
Bio N Tech SE (BNTX)
On Number four, we have Bio N Tech (BNTX), which is a biotechnology company engaged in discovering and developing therapeutics to treat various infectious diseases. Bio N Tech is the partner of Pfizer in the battle against COVID-19. BNTX stock expects $26 billion in sales for the COVID-19 vaccine and its partner in 2021 and estimates roughly $3 billion in earnings. Millions of the mutually prepared COVID-19 vaccine doses have been delivered to many countries so far. Both partners are negotiating with many other countries to supply COVID-19 vaccine doses worth $3 billion by 2022, which points to the bright future of BioNTech stock. So it can be a good bet for investors in the future.
Ocugen (OCGN), stands at number five on our list. It is a clinical-stage biopharmaceutical company focused on developing therapeutics to cure blindness and other retinal diseases. Ocugen stock is working with Bharat Biotech to develop COVAXIN and the vaccine used to treat COVID patients. The phase-3 study results of COVIXIN showed 100% efficacy against severe coronavirus and 78% efficacy against mild and moderate COVID-19 disease. The Indian government has given emergency use authorization to Bharat Biotech which is a positive sign for Ocugen stock. Ocugen stock is looking forward to developing the COVID-19 vaccine for other markets and can be a good bet for investors in the future.
Seagen Inc is an American-based biotech stock focused on developing and commercializing therapeutics to treat cancer patients, and it’s in the Number six position on our list. Seagen has shown significant growth in 2020 as compared to 2019. Its revenue for 2020 totaled $2.2 billion, which shows 140% growth over the year. The revenue for the year 2019 was $916.7 billion. The company has achieved global success with Adcetris, an antibody medicine used to treat lymphoma, and is in an excellent position to invest more in developing newer medications. Therefore, Seagen is one of the biotech stocks to watch in 2021.
Vertex Pharmaceuticals (VRTX)
The seventh biotech stock to watch in 2021 is Vertex Pharmaceuticals Incorporated (VRTX), which is mainly focused on developing and commercializing therapeutics to treat cystic fibrosis. Trikafta is the most important drug of Vertex pharmaceutical that treats roughly 90% of patients with cystic fibrosis. Estimates show that 70,000 cystic fibrosis patients are there globally, and Trikafta is the only medication available for this disease. Vertex stock has generated significant revenue through Trikafta and some other products, which will continue to rise in the future. The company has partnered with CRISPR Therapeutics and announced impressive results from a clinical trial of gene therapy for two rare blood diseases. Consequently, its continued success against cystic fibrosis and clinical developments suggests that this stock could outperform in the long run.
The following three biotech stocks are with the lowest 12-month trailing price-to-earnings ratio (P/E). Dividends and buybacks are two ways a company can return profits to shareholders, so a low P/E ratio shows you are paying less for every dollar of profits generated.
The Agios Pharmaceuticals (AGIO)
The Agios Pharmaceuticals Inc. platform is a pharmaceutical company dedicated to developing drugs for genetic diseases such as hemolytic anemias and sickle cell disease. In Q1 2021, the company reported a net income of $1.9 billion, a far cry from its Q1 2020 loss. Agios’ oncology portfolio was sold to Servier Pharmaceuticals LLC in the first quarter, which had an impact on revenue.
Sage Therapeutics, Inc.. (SAGE)
Sage Therapeutics has developed treatment for issues related the central nervous system, including schizophrenia and major depression. The company reported positive results from its SAGE-718 clinical trial, a drug that may be used to treat Huntington disease, in Q1 2021.
Innoviva Inc. (INVA)
Innoviva is a healthcare-oriented asset manager that holds portfolios of royalties for many pharmaceuticals.