Stocks were flat to start the day as investors anticipated a number of potentially market-moving events. Aside from a host of earnings updates, results from the FOMC meeting will be announced tomorrow, and on Friday, October payrolls will be reported. With stocks in record territory, some analysts warn that volatility could be on the way.
One area of the market that has the potential to do well regardless of what’s going on elsewhere is biotech. It’s not unheard of for biotech stocks to provide exponential returns in a very short period of time, even during a downturn.
Some experts say we’re in “the golden age of biotechnology.” Scientific advances open up possibilities for the treatment and prevention of diseases that could only have been imagined in the past.
This golden age is also presenting tremendous opportunities for investors. Biotech stocks offer the potential for substantial long-term returns. The best biotech stocks to buy right now boast robust pipelines, and some already have winning drugs on the market.
Our trade for today highlights a biotech company with a recently approved treatment that’s gaining traction globally and a pipeline that’s chock-full of potential, with several possible catalysts on the horizon.
Vir Biotechnology (VIR) is a commercial-stage immunology company focused on combining immunologic insights with cutting-edge technologies to treat and prevent infectious diseases. Its current development pipeline consists of product candidates targeting COVID-19, hepatitis B, influenza, and human immunodeficiency virus.
The company’s partnership with GlaxoSmithKline (GSK) on Sotrovimab, a dual-action antibody, is helping increase the drug’s reach. Sotrovimab has been authorized for emergency use in the U.S. and the E.U. and is undergoing review in several other nations. Binding agreements have already been received for the sale of more than 420,000 doses of Sotrovimab worldwide, including a portion of those procured by the U.S. government. In addition, more than 220,000 doses have been reserved through other agreements.
There’s much more to Vir’s pipeline than just their COVID antibody. Along with some established collaborators, the company has made headway in some of the most profitable infectious diseases. For instance, their stage 2 collaboration with Anyalam on siRNA (small interfering RNA) and antibody treatments for hepatitis B has produced VIR-2218; treatment experts have touted it as the potential best-in-class siRNA and a “backbone” of hepatitis B therapy.
Vir also has exciting prospects in HIV and influenza. Their collaboration with the Bill & Melinda Gates Foundation on a T-cell treatment for HIV is rounding the corner into the second phase. If all goes according to plan, Vir investors could have a significant victory on the horizon.
The analyst community is taking notice of Vir. Last week, JPMorgan analyst Anupam Rama upgraded Vir, saying that the company’s broader pipeline (beyond COVID) should come into increasing focus in the next 12 months. The analyst said he will be looking for the broader non-Covid pipeline to “emerge as a larger component value driver.”
The current consensus among 9 polled analysts is to Buy VIR. There are 6 Buy ratings, 2 Hold ratings, and 1 Sell rating. A median 12-month price target of $65 represents a 76% increase from the current price. VIR is set to report Q3 earnings on November 12th. Who knows, maybe they will also touch on exciting revelations from their pipeline.
Where to invest $1,000 right now...
Before you consider buying Vir, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not Vir.
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...
