As we move closer and closer to a successful vaccine for the coronavirus, biotech stocks are on every investors mind. And Pfiser isn’t even close to the only play in town. Here are three contenders for your portfolio.
Biotech stocks can seem risky… But that’s only if you’re not doing the right research. Rather than considering core stock metrics, it’s better to look at what a biotech company has in its pipeline, whether the company’s product is legitimate, and whether ownership stakes will become diluted as the company secures funding.
Still, choosing the right biotech stocks to buy can still feel like taking shots in the dark. Because of that, it’s smart to take small stakes in several biotech companies to reduce risk. Given that, we can start to evaluate the science, the business, and the opportunities of three of the best biotech stocks to buy right now.
BioNTech
After reporting highly positive phase 3 results on Monday for the potential coronavirus vaccine it’s working on with Pfizer (NYSE:PFE), BioNTech (NASDAQ:BNTX) may forever be known for that partnership. The results showed that the vaccine candidate is 90% effective and will be ready to receive an emergency use authorization (EUA) from the U.S. Food and Drug Administration (FDA) when the required two months of data are complete, which should be in the third week of November.
One big unknown remains: Since no one in the trial developed a severe case of COVID-19, it’s unclear how well the vaccine prevents the worst outcomes, like hospitalization and death. Still, BioNTech has consistently demonstrated its expertise in using messenger ribonucleic acid (mRNA) to create treatments for diseases. With its stock at all-time highs, the company has distinguished itself as a leader in cutting-edge gene-based drugs that deserves a place in any biotech investor’s portfolio.
CureVac
Like BioNTech, this German biotech recently released positive results using an mRNA vaccine candidate to combat the coronavirus. Unlike BioNTech, CureVac‘s (NASDAQ:CVAC) candidate is only in phase 1 trials, so it has a long way to go before demonstrating efficacy in humans. But the company has the backing to get there.
Its high-profile funders include the German government, the founder of software company SAP (NYSE: SAP), Eli Lilly (NYSE:LLY), and the Bill & Melinda Gates Foundation.
Tesla (NASDAQ:TSLA) and its CEO, Elon Musk, are also partners in the effort. The carmaker manufactures the RNA bioreactors that boost and streamline production of the company’s vaccine. After the positive phase 1 data, the vaccine will now move into phase 2/3 testing, during which 36,000 participants are expected to enroll.
RELATED: This $5 Biotech Stock Just Got a 9-Figure Cash Injection From Jeff Bezos, Peter Thiel, and the Rockefellers
CRISPR Therapeutics
CRISPR Therapeutics (NASDAQ:CRSP) is one of a handful of public companies leveraging the “clip-and-paste” function associated with bacterial immune responses to edit genes as a treatment for disease. Such bacteria “clip” portions of virus DNA and “paste” them into their own genes so they can recognize the attacker in the future. Scientists can harness this function to edit the genetic sequence of organisms and change the function of cells. This is especially helpful for diseases with a single gene defect, such as sickle cell anemia and cystic fibrosis.
So far, management has leveraged this approach to target cancers and blood disorders, with positive results in early trials. The science is proven, and with a founder who recently won a Nobel Prize, funding for research is unlikely to be a problem.
At a market cap of just $7 billion, once the method proves to be safe in humans, CRISPR Therapeutics could turn into one of the most important disease-fighting companies out there over the next decade. That said, any early-stage biotech is likely to be volatile. Buying shares of CRISPR is a bet on gene-editing technology, which could take years to prove itself. Investors should keep this timeline in mind when they buy.
BONUS: Where to invest $1,000 right now
Before you consider BioNTech SE, you’ll want to hear this.
Investing legend, Keith Kohl just revealed his #1 stock for 2021… It’s a biotech stock… And it’s not BioNTech.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
Click here to watch his presentation, and decide for yourself…
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream… And by then, it could be too late.
Click here to find out the name and ticker of Keith’s #1 pick…
