Want to Buy Biotech Stocks? Before buying Biotech stock, you should consider researching this sector's fundamentals and effectively compare the performance and earning potential of the different Biotech stocks, thus leading to smart and wiser investment decisions.
So What are the best Biotech stocks to buy right now? Want to jump straight to the answer?
Best Biotech Stocks To Buy In September 2023?
Biotech companies fall under the healthcare stocks sector and their stocks are the stocks of companies that primarily engage in the development of new cures and treatments against diseases, viruses, and medical conditions in general. The type of disease a biotech firm is targeting to fight largely determines its stock value and subsequent growth potential. For example, a biotech firm working on a medicine for a very rare disease will probably be less valuable than a biotech firm working on breast cancer treatment, since this is a disease that affects millions of people across the globe every year.
Due to the fact that each new drug developed needs to undergo a rigorous scrutiny process and countless clinical trials, while it must be submitted and approved by the pertinent authorities, such as the FDA in the USA, before it is allowed to start selling, biotech companies are always running the risk of spending a lot effort, money and time on developing drugs that may never hit the shelves. On the other hand, as illustrated vividly in the case of the covid vaccines, a biotech may see its shares catapult in a matter of hours if it manages to get a treatment or vaccine approved when that particular remedy is mostly needed and demand for it is high.
By the end of the guide, you should know the following:
Gilead Sciences is currently one of the top biotech companies globally, with its work focusing on the research, development and commercialization of pharmaceutical drugs, especially in areas where the need for such medical treatment has not been met yet. Its main areas of interest are respiratory diseases, liver diseases, oncology and HIV/AIDS. Prior to deciding if this is the right stock for you to add to your investment portfolio, here’s a quick overview of the main advantages and drawbacks of investing in this company.
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In a nutshell, Gilead Sciences is a very promising bio tech stock, that is worth your close attention and perhaps a spot in your investment portfolio. The future outlook and prospects seem more than positive, due to the multiple drugs in the pipeline as well as the contribution of Gilead drugs in fighting the Covid-19 pandemic.
With a $86.451 billion market cap, Gilead seems well on an expansion course, rendering it a solid investment, while as of April 2020, the company’s current price per one share of stock stands at $68.93.
Vertex Pharmaceuticals is another top example of a leading biotechnology company, whose main focus is in the development of drugs for the treatment of cystic fibrosis. Find out its main benefits and downsides to discern whether this particular biotech stock is worth investing in.
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The most noteworthy feature of the Vertex stock is the company’s long and proven history of growth, which is reflected in the fact that over the previous 3-year period, its revenue has grown by more than 44%, while its earnings have risen by almost 379% over the same period. This is a strong indication that buying Vertex stock is a great choice for those seeking a long-term investment opportunity with good potential.
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With a current stock price at $202.24, Vertex Pharmaceuticals is a promising biotech stock to invest in, with the company doing a good job in keeping its debt levels under control, while at the same time recording good levels of cash flow.
An interesting biotech company, which may well prove a very potentially lucrative investment option is Axsome Therapeutics. Axsome often falls under the radar of investors mainly because it mainly deals with less well-known diseases. As a pre-commercial stage company, it concentrates on finding new therapies for the management of disorders affecting the central nervous system, the currently available treatments for which are very limited. Let’s have a closer look at the main strongpoints and drawbacks of investing in this particular biotech stock.
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There are clearly several good reasons for an investor to buy Axsome Therapeutics shares, and with the current stock price of around $53, now seems like a good time to move in, considering the strong outlook for this biotech company.
BioReference Laboratories is part of the OPKO Health group, and it is essentially a clinical lab company, providing lab testing services which are used in the diagnosis, evaluation, and treatment of a large number of various diseases. Another interesting and promising stock to watch closely, here’s what you should know before investing in this company.
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This is a stock that is well worth a position on your radar, since the company scores metrics well above the industry averages, such as high gross profit and net profit margins.
BioReference Labs’ stock price is currently around $34, while all OPKO Health shares are considered as viable investments with its stock gaining over 60% over the past year alone.
Currenly valued at over $1.4 billion, California-based Adverum Biotechnologies is another biotech stock that deserves your attention as it holds a great potential. Adverum is essentially a clinical stage gene therapy company, which focuses on the development of treatments for serious ocular and other rare diseases.
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With a strong growth rate and positive prospects ahead perhaps Adverum should be added to your investment portfolio before its price soars, or at least be placed on your watchlist of biotech stocks to closely monitor before you buy.
Biotech stocks are growing in exposure and popularity, while they are also growing in numbers, meaning that you can trade them through most online brokers in a fast and easy manner. Such online brokers that facilitate the trading of stocks in general and biotech stocks in particular, also allow you access to useful trading tools, such as stock screens and custom filters that improve your trading experience and enhance your chances for stock trading success.
To get started with biotech stock investments today explore the online brokers that start-business-online recommends:
There are several online sites and platforms where people from across the globe can buy Biotech at good exchange rates and with low or no transaction fees. To aid your quest we have comprised a list of some of the most popular Stock Trading platforms to buy Biotech sector's shares from and your strongly advised to consult this list before making your first purchase of or investment in Biotech industry.
To be able to effectively compare between different biotech stocks and choose the one that best suits and matches your own trading style and aims and in order to best determine which biotech stock rightly deserves a spot in your own investment portfolio, you should pay particular attention to the following features for each share:
Patience leads to Better Profits
An investment in biotech stocks is not a get rich quick solution by any account. On the contrary, biotech stock investments usually require you to adopt the buy and hold approach for long periods of time, since many new treatments and medicines take years to develop and eventually hit the shelves. However, if you have the patience to wait it out, an investment in a biotech stock makes a turn into gold overnight, while also help save some lives too!
It is very possible that all the companies featured above will be able to successfully complete the clinical trials and thus gain regulatory approval to start marketing and selling their innovative drugs and treatments. However, it is also very possible that any clinical trial can flop or even completely fail at any stage. This is an inherent risk that is always present when considering investing in any pharmaceutical or biotech company. Moreover, even if clinical trials go well, there is a guarantee that treatments will definitely move on and get approval from regulatory agencies, such as the FDA.
This inherent risk does not mean that such investments should be avoided, but simply that potential investors should be more careful and more meticulous with their research in each individual company, finding out exactly at which phase of its development each new drug is. The general rule is that drugs that are already in the later stages of their development are more promising, and thus an investment in their companies is less risky. Moreover, biotech companies with several drugs in the pipeline are safer investments than those with just one or a few experimental drugs, as it is unlikely that all of them will fail to get approved and reach the markets. Because of the nature of their work, most biotech companies take a long time to become profitable, as this only comes after they have successfully launched at least one or more of their innovative treatments and drugs.
Until they reach this stage, however, they must spend significant amounts in order to fund their research and development operations as well as their clinical studies and trials and many often face significant difficulty in finding the necessary funds, failing dismally if and when their new drugs under development fail to gain approval and reach the market. It is thus important for potential investors to check out the current financial position of a biotech company and ensure it is in good standing to adequately fund its efforts.
Moreover, aspiring biotech investors should also be aware that many such companies often resort to the issuing of new shares to cover their cash needs, thus diluting the value of their existing shares, while others may count on grants they receive from the government of other organizations. Dependence may also be created through partnerships with larger drugmakers and it is not a rare phenomenon for promising biotech companies to be acquired by other larger pharmaceutical giants.
Despite such risks, however, the stocks of the above-mentioned biotech companies and many others in this field are very likely to generate incredible long-term gains and profits, for those investors wise enough to buy a stock at the right time and patient enough to long on to it until it booms.
There is no guarantee that you will make a profit when you invest in Biotech. However, to give yourself the best chance possible we have hand-picked the three most valuable such strategies, which you can find below:
In this guide, the aim wasn’t only to answer simple questions like “how to buy stocks of the Biotech sector?” or “where to buy Biotech stocks?”. Instead, the goal was to equip you with the relevant knowledge and insight to be able to see and understand the bigger picture as well as make your Biotech stocks investment journey as successful and as profitable as possible!