In this article we discuss the 5 best BioTech stocks to buy for 2021. If you want to read our detailed analysis of the biotech industry, go directly to 10 Best Biotech Stocks To Buy For 2021.
5. Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX)
Vertex Pharmaceuticals (NASDAQ: VRTX) is a Boston-based firm that aims to develop and manufacture transformative medicine for people with serious diseases. It has a market cap of well over $55 billion and generates an annual revenue of well over $6 billion. In fact, in 2020, the revenue soared 50% compared to the previous year. The company enjoys a monopoly in treating cystic fibrosis and presently markets four drugs related to the disease. A new drug in this group has soared to incredible highs in the US and is now slated for worldwide growth.
Late last month, the Australian government approved the use of the Vertex drug to treat cystic fibrosis patients in the country. The firm has received positive feedback from European regulators as well. In addition to cystic fibrosis treatment, the company is now looking to expand into other areas. According to reports, the research and development wing of the firm is working on medicines for other rare genetic diseases like alpha-1 antitrypsin deficiency, mediated kidney diseases, beta-thalassemia, and sickle cell disease.
Alger Spectra Fund, in their Q4 2020 investor letter, mentioned Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX). Here is what Alger Spectra Fund has to say about Vertex Pharmaceuticals Incorporated in their Q4 2020 investor letter:
“Vertex Pharmaceuticals has become the world’s leading cystic fibrosis company by introducing the first drugs that treat the underlying disease rather than just the symptoms. Cystic fibrosis is caused by genetic abnormalities. Vertex has been able to target the proteins made by defective genes and allow them to function more normally. The shares detracted from portfolio performance when Vertex announced a disappointment in its drug discovery efforts for VX-814, one of two treatments the company is developing for Alpha-1Antitrypsin Deficiency (AATD), a genetic disorder that causes lung and liver disorders. The very surprising results were released three months earlier than expected and are delaying the development of the AATD drug.”
4. GlaxoSmithKline plc (NYSE: GSK)
GlaxoSmithKline (NYSE: GSK) is a United Kingdom-based drug manufacturer that has a market cap of close to $100 billion. The company has a dividend yield of 5.3% and specializes in vaccines and immunology. The company is presently working on several projects with pharma giant Sanofi, including plans to market the Advil pain reliever drug it is famous for. As part of a reformation plan, the company is also looking to sell out some of its assets, including factories in Europe and India in order to invest the money into research and development.
In the United Kingdom, the firm has teamed up with Novavax, Inc. (NASDAQ: NVAX) for vaccine production, helping reduce the dependence of the country on the AstraZeneca PLC (NASDAQ: AZN) vaccine developed by Oxford. In 2020, the firm posted profits crossing $23 million. This was less than the more than $100 million figure reported in 2019 and was attributed to the results of the pandemic. The firm is also looking to produce 200 million doses of a COVID-19 vaccine in a partnership with Sanofi and has said that it will distribute the vaccine at no profit.
3. AbbVie Inc. (NYSE: ABBV)
AbbVie (NASDAQ: ABBV) is a Chicago-based pharma giant that has a market cap of close to $200 billion. It has an annual revenue that is close to $45 billion. It was founded in 2013 as a spinoff of Abbott Laboratories (NASDAQ: ABT) and has since increased 184% in value. The company is posting these highs on the back of two new drugs in oncology and immunology. The firm is also well-known for producing Humira, an immunosuppressant that is used to treat arthritis. ABBV ranks 3rd in our list of 10 best biotech stocks to buy now.
The shares of AbbVie are only one of the few dividend growth stocks that have managed double-digit payout increases this year. This growth has all but ensured another year of membership in an exclusive club that lists stocks that have raised their payouts annually for at least 25 consecutive years. It also makes the firm a valuable biotech stock in 2021.
2. Merck & Co., Inc. (NYSE: MRK)
Merck & Co., Inc. (NYSE: MRK) is an American national pharma firm that produces medicines, vaccines, biologic therapies and animal healthcare products. The firm is most famous for selling Keytruda, the top immunology drug that is used to treat cancer patients. The market value of the firm is well in excess of $200 billion and the firm has an annual revenue of close to $50 billion. The cancer drug that the company manufactures was alone responsible for at least $11 billion in sales last year. MRK ranks 2nd in our list of the best biotech stocks to buy for 2021.
Last month, the firm invested close to $30 million in equipping a single-use production facility at its Science Centre in France. Earlier this month, it also completed the $1.8 billion takeover of Pandion Therapeutics. The firm has also joined the World Health Organization in recommending against the use of generic anti-parasite drugs to treat coronavirus patients.
1. Incyte Corporation (NASDAQ: INCY)
Incyte (NASDAQ: INCY) is a US-based pharma company that focuses on the development and manufacture of therapeutics. It has a modest market cap of $18 billion but generates over $2 billion in revenue annually. The firm is known for making an inhibitor that controls certain enzymes in the human body. The company also makes a drug that is used to treat leukemia. It has also recently got a lymphoma treatment approved by regulators. It tops our list of best biotech stocks to buy for 2021.
Last month, the company announced that it had reached an agreement with the European Union for the distribution of the Pemazyre drug in the continent. The drug is used to treat adults with locally advanced or metastatic cholangiocarcinoma. The firm is also well known for producing the drug Jakafi, which is used in chemotherapy but also injected for rare blood diseases and for skin diseases.
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