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This story originally appeared on StockMarket
Should investors buy these healthcare stocks before May 2021?
We are still seeing COVID-19 cases increase globally, despite vaccines being introduced around the world. This has no doubt allowed healthcare stocks to be in the spotlight. It is therefore likely that investors will shift their focus back to the healthcare industry on the stock market. For investors, the logic is pretty straightforward when it comes to investing in the healthcare industry. Everyone will need medical care at some point, whether or not there is a pandemic. Whether it's digital health care or advances in biotechnology, investors can still make huge profits.
We don't need to look any further than Johnson & Johnson (NYSE: JNJ) and AstraZeneca (NASDAQ: AZN) for prime examples to illustrate health care demand. Although there have been reports of side effects related to their vaccines, many countries around the world are resuming administration. It did so after many health officials determined that the benefits would far outweigh the risks.
A new report from the Centers for Disease Control and Prevention (CDC) calculated how many lives the shot could save over the next six months. According to the CDC model, continued administration of the J&J vaccine at only half the rate at which it was used in early April could prevent 580 to 1,400 coronavirus deaths. So one can assume that health care has always been important and will likely remain in focus for the foreseeable future. Now let's look at some of the best healthcare stocks on the stock market.
See Top Health Care Stocks Now
First, we have a dermatology company that focuses on skin cancer, DermTech. The company develops products that facilitate the early detection of skin cancer and customize drug treatments. DermTech aims to transform dermatology by providing doctors with highly accurate, objective information. The company's shares first rose in December 2020 and have seen significant gains of over 270% over the past six months. This was largely because investors responded positively to the results of the Pigmented Lesion Assay (PLA), a non-invasive melanoma exclusion test. The study confirmed that PLA can eliminate melanoma with a 99% negative predictive value.
Last week, the company announced the next generation test for improved early detection of melanoma, DermTech PLAplus. It provides objective and actionable information to guide clinical management decisions for skin lesions suspected of having melanoma. Therefore, doctors can detect skin cancers like melanoma earlier, which leads to a higher cure rate. The DMTK share rose by around 10% this week.
This could be due to investors responding to speculation that Cigna (NYSE: CI) will cover the company's early-stage PLA test for melanoma. If this test is found to be consistently effective, the company could see a significant upward trend. Could this mean that DMTK shares are now worth watching?
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Brooklyn Immunotherapeutics Inc.
Next up, we have Brooklyn Immunotherapeutics. The company is a clinical-stage biopharmaceutical company focused on cytokine-based therapies in the treatment of cancer patients. Brooklyn is developing IRX-2, a cytokine-based therapy for the treatment of patients with head and neck cancer. As some of you may know, the price of company shares has doubled over the past week. BTX stock rose over 51% on Tuesday, apparently on the news of a new date.
In particular, Matthew While, M.D., Ph.D. to the company's scientific advisory board. He pioneered the use of viral vectors for neurological disorders. In early April, the company paid $ 1 million to acquire a license for the mRNA gene editing and cell therapy technology from Factor Bioscience and Novellus. This would allow Brooklyn to use a fully patented process to search for and develop gene-edited compounds using mRNA. Why is it so big?
Because preclinical data indicate that it is more efficient, non-immunogenic, and non-mutagenic for treating multiple solid tumors as well as other hereditary diseases. As with many other health stocks, any potential breakthrough would be colossal for the company. Could BTX stock be the next big hit in healthcare?
Novavax, Inc. is a clinical-stage vaccine company focused on the discovery, development, and commercialization of recombinant nanoparticle vaccines and adjuvants. With the outbreak of the global pandemic last year, the company also ventured into making COVID-19 vaccines. Although no product is on the market yet and production delays are occurring, it is expected to be one of the leading vaccine candidates. The company's vaccine has been shown to be as effective as other vaccine front-runners. On Tuesday, President Joe Biden hinted that Novavax's vaccine may be nearing approval in the United States.
There was also news from Novavax and President Moon Jae-In of South Korea who agreed to expand their current partnership to produce the new vaccine locally. The South Korean SK Bioscience will handle and produce the vaccine as early as June. In addition, Novavax announced last week that its malaria vaccine candidate R21 has 77% effectiveness.
Although GlaxoSmithKline (NYSE: GSK) is currently marketing a malaria vaccine, its effectiveness is only between 35% and 55%. So this would really be a milestone in malaria prevention if R21 is finally approved. Given Novavax's seemingly endless possibilities, would you consider adding NVAX stocks to your watchlist?
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Last but not least, with Moderna we have a leading vaccine company. As most of you know, the company is one of the first to receive Emergency Use Authorization (EUA) for its COVID-19 vaccine from the U.S. Food and Drug Administration (FDA). In addition to developing a vaccine against the coronavirus, the company is also investigating the prospects for developing personalized cancer vaccines based on mRNA and for the treatment of other rare diseases. Therefore, the future of the company looks intact even after COVID-19. The company's shares rose over 250% over the past year.
On Tuesday, Moderna announced that it was working towards a single shot for both COVID-19 and flu protection. The company hopes to use its mRNA-based technology to kill multiple pathogenic birds with one stone. On the same day, DNA Script announced a partnership with Moderna to develop a prototype for the rapid mobile manufacturing of vaccines and therapeutics.
The partnership will leverage DNA Script's novel enzymatic synthesis platform to support Moderna's existing manufacturing technology for the rapid manufacture of mRNA vaccines and therapeutics. Despite the great success of the past year, the company certainly does not take anything for granted. With that in mind, would MRNA stock be added to your watchlist?