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The stock market entered a correction period last week. Tech stocks were particularly hit when it was discovered that SoftBank engaged in buying up call options with major tech stocks, which drove their valuations. Nonetheless, a few days later, blue-chip stocks continued their rise. Now, it’s time to look at resilient biotech stocks that show the same doggedness.
3 Top Biotech Stocks Right Now
This week, if you haven’t yet jumped on the blue-chip tech stocks train, consider biotech stocks that show the same properties:
- Locked-down market domination.
- Ability to quickly recover.
- A solid cash-flow.
In addition to these criteria, the most popular blue-chip tech stocks, such as Amazon, Apple, and others, are quick to gain value due to their prestige and constantly branching out and absorbing other high-tech companies. However, these three biotech stocks hold all the growth indicators once coronavirus dissipates from public consciousness.
Some fields of expertise tend to coalesce into dominating industry forces. In the tech world, these would be companies manufacturing semiconductors or maintaining operating systems. In the biotech world, Illumina represents a dominating force in the field of genome sequencing.
From uncovering familial ancestry to tracking down diseases, genome sequencing is permeating all branches of bio-science and medicine. Illumina positioned itself in an enviable status as a holder of 70% of the genome-sequencing market. Moreover, Illumina developed tools that produce 90% of the global output of such data.
Covid-19 hampered Illumina’s sales, as it reported a 25% revenue drop last quarter. This was to be expected and is transient. Many private companies, clinics, and hospitals inappropriately laser-focused on the coronavirus pandemic. Therefore, genetic screenings were put on a backburner.
Moving forward, Illumina is already seeing a rise in sequencing consumables, as researchers and technicians get back to work. Accordingly, Illumina expects its last bad quarter to be this year’s exception. After the coronavirus hysteria finishes, Illumina’s pre-corona growth should be back on schedule.
Exelixis has developed several key drugs that spurred its growth since 2016. Its champion drug, Cabometyx, is responsible for treating not one but two types of cancers – advanced renal cell carcinoma (RCC) and hepatocellular carcinoma.
However, Cabometyx keeps on giving. Last month, Exelixis submitted Cabometyx to be issued as a drug cocktail alongside Bristol Myers Squibb’s Opdivo, both to be working in tandem to battle RCC.
Additionally, cabozantinib, one of the key ingredients of Cabometyx, has the potential to further broaden oncology treatments, with over 70 ongoing trials. These two clinical trials starring Cabometyx have entered phase 3.
As far as Exelixis’s earnings go, it exceeded the projections of the last four quarters. As is the case with Illumina, this growth experienced a slump as hospitals were emptied in the preparation of an event that never happened. Likewise, post-corona Exelixis is poised to continue its success with the current revenue forecast going from $725 to $775 million.
Vertex Pharmaceuticals (NASDAQ:VRTX)
This is not the first time we have recommended Vertex. Its main thrust remains the same. As the primary provider of drugs combating cystic fibrosis (CF) with four types of treatments, it appears it will have a new star to boast. This would be Trikafta, considered a breakthrough treatment for CF that was approved last October.
Following the same path as Exelixis with its cabozantinib, Vertex seeks to significantly expand Trikafta, Symdeko, and Kalydeco. Vertex submitted FDA to approve them for use with patients with a variety of CFTR gene mutations.
According to Morningstar, the approval would further boost its double-digit growth and domination of the CF market. By 2024, these CF treatments are expected to garner at least $10 billion in sales, from last year’s $4 billion.
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