Some investors may decide to avoid the notoriously volatile biotech sector amidst the current uncertainties affecting the market. Nevertheless, there are strong biotech stocks worth considering even now. While these stocks might not completely avoid the prevailing fluctuations, they hold the potential for significant long-term returns. For those with an extra $2,000 (ensuring you have sufficient emergency savings), here are two biotech stocks to think about: Moderna
(MRNA 0.66%) and Regeneron
(REGN 0.30%).
1. Moderna
Moderna has the potential to yield substantial long-term returns thanks to its mRNA vaccine technology. Here are two reasons supporting this outlook. Firstly, mRNA vaccines can be created more rapidly compared to traditional vaccines. Typical vaccines involve injecting a weakened virus to prepare the immune system, but this method entails lengthy procedures, including growing and inactivating the virus safely.
In contrast, mRNA vaccines instruct the immune system on how to react to viruses. This efficiency allowed the rapid development of mRNA vaccines during the pandemic. Secondly, Moderna boasts a comprehensive pipeline of promising candidates that could expand its existing portfolio notably over the next five years, including a phase 3 vaccine for norovirus, which currently has no approved treatment.
Today’s Change
(-0.66%) $-0.36
Current Price
$54.23
Key Data Points
Market Cap
$22B
Day’s Range
$51.68 – $56.20
52wk Range
$22.28 – $59.55
Volume
6.1M
Avg Vol
9.7M
Gross Margin
44.29%
Moderna could also be on the verge of launching a flu vaccine, which, despite existing options, typically lacks effectiveness, highlighting the need for better solutions. Additionally, the company is working on an innovative personalized cancer vaccine, mRNA-4157, currently proceeding through several phase 2 and phase 3 trials. This vaccine has shown considerable effectiveness in improving outcomes for melanoma patients when combined with Keytruda.
Although Moderna’s financial performance has been impacted negatively in recent years due to the uncertainty surrounding the COVID vaccine market, its extensive pipeline and cutting-edge technology may eventually enhance its profitability and offer significant returns in the future. Investing $2,000 could allow purchase of roughly 36 shares of Moderna at present prices.
2. Regeneron
There are several compelling reasons to consider Regeneron as a buy-and-hold investment. Primarily, the company boasts a strong product lineup, most notably Dupixent, a treatment for eczema that it markets in collaboration with Sanofi. Dupixent has emerged as a top-selling drug globally and is expected to drive growth, particularly due to recent expansions in its approved uses, such as for COPD.
Additionally, Regeneron’s portfolio includes Eylea and its high-dose formulation, HD Eylea. Although Eylea faces biosimilar competition, HD Eylea is gradually gaining traction due to its more convenient dosing schedule, benefiting from patients switching from the original formulation. These two product lines should support Regeneron’s sales moving forward.
Regeneron Pharmaceuticals
Today’s Change
(-0.30%) $-2.26
Current Price
$747.15
Key Data Points
Market Cap
$79B
Day’s Range
$735.07 – $750.22
52wk Range
$476.49 – $821.11
Volume
28K
Avg Vol
687K
Gross Margin
81.56%
Dividend Yield
0.48%
Regeneron’s development pipeline is also noteworthy, as it works on therapies spanning various treatment areas. Promising candidates include a gene therapy for genetic deafness, several cancer treatments, and a burgeoning weight loss portfolio. Given the rapid rise in demand for obesity treatments, these efforts could substantially contribute to future revenue.
Moreover, Regeneron’s strategy includes a GLP-1 weight loss medication, along with a proposed therapy to help maintain muscle mass during weight loss. Although these products still need to gain regulatory approval, their success could enhance the firm’s financial performance. Additionally, Regeneron pays dividends and engages in share buybacks, reflecting its commitment to returning value to shareholders. With a $2,000 investment, you can currently acquire two shares of Regeneron.
