Biotech stocks have been especially hot in the stock market this year. In fact, they have been the go-to stocks for investors looking towards high-risk, high-reward sectors. Undeniably, the race for a coronavirus vaccine has propelled several top biotech stocks to new all-time highs. Investors are all too familiar with vaccine superstars Pfizer (PFE Stock Report) and Moderna (MRNA Stock Report). Despite Pfizer’s vaccine being the first to roll out, supplies are still limited. This means that there is plenty of room left for many biotech companies who are still testing and/or seeking approval. As more biotech companies enter the race, the competition is only going to get more intense.
In light of all the focus on a coronavirus vaccine, most people tend to overlook the other happenings in the industry. Sure, breaking news about positive vaccine updates could mean great gains for investors. Likewise, it is also important to note that any bad news could also have the same result conversely. Some investors may be dissuaded by such a fast-paced niche segment of the industry. Regardless, there have been a wide array of companies who have continued their research amidst all the chaos of the coronavirus pandemic. These include research on treatments and drugs for cancers, genetic diseases, and even rare diseases.
As with most large and lucrative industries, investors will face the same problem. That is, how do we separate the wheat from the chaff? Considering the volatile nature of the biotech industry, this is no small challenge. In light of that, here is a list of top biotech stocks that have been making big moves lately.
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First up, we have Sangamo (SGMO Stock Report) which saw its share price rise by 53% yesterday. That appears to be a delayed reaction to the company’s recent announcement on its hemophilia A program. To recap, Sangamo specializes in applied cell and gene therapy in the fight against hemophilia and other genetic diseases. The company has a plethora of programs undergoing clinical trials this year. Some of them even involve partners such as Pfizer, Biogen (BIIB Stock Report), and Sanofi (SNY Stock Report). Now that SGMO stock seems to be having a correction, sliding 10% as of 10.16 a.m. ET, would this provide a nice setup for investors to buy at a discount?Sangamo Therapeutics: What To Know
Earlier this week, Sangamo and Pfizer announced promising results from their early-stage trials on one of their joint endeavors. Their gene therapy candidate for hemophilia A proved to increase the necessary blood clotting factors in patients within a year of administration. Chief Medical Officer Bettina Cockroft said, “These latest results demonstrate that this gene therapy may bring clinical benefit to patients and has the potential to serve as an alternative to the burdensome standard of care for patients with hemophilia A.” Although it may be an early success for Sangamo, it is definitely a step in the right direction.
In its recent quarter fiscal released in November, the company reported an impressive year-over-year increase in total revenue of 163%. It appears that Sangamo’s collaborations and partnerships have convinced investors of its long-term growth potential. The company reported significant improvements in its earnings per share as well. This added up to a $0.01 loss per share compared to a loss of $0.24 in the same quarter last year. Still, investors are likely placing a bigger focus on the progress of its ongoing trials. Nevertheless, despite the recent announcement, one should note that the trial is still at an early stage. Would you be adding SGMO stock to your watchlist?Top Biotech Stocks To Watch In December: TG Therapeutics Inc
Next up, we will be looking at TG Therapeutics (TGTX Stock Report). The company’s share prices went up by nearly 41% yesterday after positive results from a clinical trial. The company’s stock price climbed another 5.49% gain today as of 10.18 a.m. ET. For some context, TG is a biopharmaceutical company that focuses on treatments for B-Cell cancers and autoimmune diseases. Investors may be wondering what could have been the catalyst for the sudden attention on TGTX stocks this week.
On December 10, the company released positive topline results from two Phase 3 studies evaluating ublituximab in patients with multiple sclerosis (MS). The treatment demonstrated a statistically significant reduction in annualized relapse rate over 96 weeks. CEO Michael Weiss said, “We are so pleased to share these positive topline results for our ULTIMATE MS studies. If approved, ublituximab has the potential to offer patients a one-hour infusion, which we believe will be an attractive option for many patients with MS.” With an estimated one million Americans living with MS, the need for this treatment is clearly present.
At the end of September 2020, the company had $254 million in cash on its balance sheet. That would be sufficient to fund the company’s operations for some time. All this will undoubtedly play a role in helping it to transition from a development stage company to a commercial organization. With the positive development, can TGTX stock continue the momentum moving forward?Top Biotech Stocks To Watch In December: Editas Medicine Inc
Another biotech stock that has been making waves lately is Editas (EDIT Stock Report). The company’s stock price seems to be taking a breather today, sliding 4.22% as of 10.22 a.m. ET. This came after the stock nearly doubled in the past 5 trading days. On December 10 alone, EDIT stock went up 32%. This came after the company filed for an investigational new drug (IND) application with the U.S. FDA. Editas is a clinical-stage biotech company developing gene-editing technologies. Its current projects involve gene therapy for a genetic eye disorder and treatment for sickle cell disease.
The IND application pertains to the initiation of a Phase 1/2 clinical trial of EDIT-301, an experimental gene-editing medicine for the treatment of sickle cell disease. CEO Cynthia Collins said, “This IND submission is a key milestone for Editas as we continue to advance several ex vivo cell therapy medicines. This submission brings us one step closer to entering the clinic with our potentially best-in-class, transformative, and durable medicine for people living with sickle cell disease.”
With over $495 million in cash and short-term investments, the company appears to be on a solid footing. It has ample resources to fund its pipeline for the years to come. With the market for gene therapies potentially growing in the double-digits in the years to come, Editas may just be at the start of its long-term runway. With that in mind, would you consider adding EDIT stock to your portfolio?