Some biotech stocks have performed well in the past year; others have started to do well in the last few months and could extend their gains in the second half of the year.
Where Can I Buy Biotech Stocks in June 2021?
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Which Biotech Stocks to Buy in June 2021?
1. Novavax (NASDAQ:NVAX)
Biotechnology company Novavax is looking to develop cures for several of the world’s worst diseases. The company uses recombinant vaccine technology to develop nanoparticle vaccines and adjuvants (substances that boost the immune system’s response to antigens). Its stock rallied more than 183% earlier this year. It has since pulled back nearly 43% leaving a lot of room to bounce back in the second half of the year. Its Covid-19 vaccine has received approval from the Food and Drug Administration (FDA). NVAX is also developing cures for ebola and seasonal influenza.
2. Sanofi (NASDAQ:SNY)
Sanofi is currently up 15% since March. The stock still trades at an attractive P/E ratio of just 8.89, which means that there is a lot of upside potential. Sanofi’s purchase of Principia last year could play a huge role in its performance. Principia develops drugs for the treatment of multiple sclerosis. The stock has also been boosted by the news that the Canadian government will partner with it to develop a new flu vaccine. It is also working with GlaxoSmithKline to develop a Covid vaccine that has already reached Phase 3 trials.
3. Bristol-Myers Squibb(NYSE:BMY)
Bristol-Myers shares are up just 10% since March but more gains could be on the horizon. The US FDA is due to issue a decision on the use of the company’s Opdivo drug as an adjuvant on 3rd September. As we move closer to the date, BMY shares could see a significant rally. Overall, BMY is still one of the top biotech stocks to buy based on the portfolio of products it offers following the acquisition of Celgene in 2019.
4. Seagen (NASDAQ:SGEN)
This biotechnology company focuses on developing antibody-based therapies for the treatment of cancer. Seagen currently develops drugs for the treatment of Hodgkin lymphoma and breast cancer, among others. It is developing a revolutionary monoclonal antibody technique (involves cloning of antibodies) for cancer therapies. The stock has bounced back recently after pulling back at the start of the year. The current bull run could benefit as more people feel safer resuming clinical therapies amid Covid vaccinations.
5. Johnson & Johnson (NYSE:JNJ)
The Johnson & Johnson Covid vaccine may have arrived late to the party (relative to Pfizer’s and Moderna’s), but it appears to be catching up quickly. The company’s Covid vaccine rollout hit a snag in April after a factory mix-up but it has since resumed roll-outs. With more than 5 billion people around the world yet to be vaccinated, the company’s top line could benefit as we move to the second half of the year. The stock is up nearly 9% since March, which gives it a lot of upside potential.
6. Pfizer (NYSE:PFE)
Pfizer has been one of the best biotech stocks since it announced its Covid-19 vaccine jointly with BionTech. However, the stock has not gained as much as its vaccine partner. Pfizer is up about 18% since November last year, whereas BionTech has gained more than 200%. PFE has partnered with several governments across the world to roll out its Covid vaccine, which is still the most widely accepted globally.
7. Moderna (NASDAQ:MRNA)
Moderna is another top biotechnology stock that has benefited from the Covid-19 vaccine it developed late last year. The MRNA share price pulled back between February and March before gaining more than 73%. The stock currently trades at a P/E ratio of 138.12, which looks too high. However, when you factor in expected earnings growth for the next 12 months and the next 5 years, its forward 12-month P/E of 11.02 and PEG ratio of 0.47 is exciting.
Biogen’s clinical pipeline includes the Aducanumab drug which awaits the FDA decision on June 7. This drug is seen by analysts as what could potentially re-ignite BIIB’s outlook as it continues to face challenges to its Alzheimer’s drug amid several generic alternatives. If the FDA gives the green light approval on aducanumab, this could spur growth in the BIIB stock price. The stock gained more than 7% last week, which shows market optimism ahead of the FDA decision.
9. Vertex Pharmaceuticals (NASDAQ:VRTX)
Vertex shares have slumped since January but that could be about to change in the coming weeks if the FDA approves the use of its application to use Trikafta in children with cystic fibrosis ages 6 through 11. The decision is due on 8th June, and this could trigger a massive rally in the stock price. Vertex is the market leader in the treatment of cystic fibrosis. Getting this approval will boost its dominance in the market.
10. Regeneration Pharmaceuticals (NASDAQ:REGN)
Regeneration Pharma develops treatments for serious medical conditions. Some of the company’s leading products include Eyelea (for treating eye diseases) and Libtayo (for cancer immunotherapy) among others. REGN shares are up nearly 15% since March and trade at an exciting P/E ratio of 14.57. Its PEG ratio of 1.07 implies high expectations on earnings growth over the next five years. The company’s Covid-19 antibody therapy REGEN-COV has received approval from US authorities for use in combating the virus.
Why Buy Biotech Stocks in June 2021?
The FDA is continually reviewing applications for drug approvals, and the US authorities often give their verdict around March, June, and September times. We have identified some biotechnology stocks that are awaiting approval of their products soon.
In addition, June this year comes at a time when the world is recovering from Covid-19. There are still many people yet to be vaccinated, and based on the success that vaccines have demonstrated over the last six months, it could get more exciting for biotechnology companies going into the second half of the year.
The Bottom Line
Biotechnology companies tend to do well after receiving product approvals from healthcare authorities. Some of the best biotech stocks only started to gain significantly over the last three months. With more FDA decisions on the horizon and more people now willing to take the Covid vaccine, the second half of the year could see top biotech stocks do well, which might make June the best time to buy biotechnology stocks.