New Trade for November 22nd, 2022

Some experts say we’re in “the golden age of biotechnology.” Scientific advances are opening 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 now boast robust pipelines; some already have winning drugs on the market. Our pick for the day ticks all of these boxes.

Dylan Jovine

Tiny Biotech Wins $75 Billion Patent

Cambridge firm proves its possible to “Find & Replace” cancer cells. The Wall Street Journal reports this small biotech is “Transforming Medicine.” No wonder Goldman Sachs & Morgan Stanley have been quietly buying shares. [Get the name of this little-known stock here >>>.]

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Vertex Pharmaceuticals (VRTX) is the undisputed leader when it comes to cystic fibrosis therapies. The company’s portfolio of approved CF drugs will deliver at least an estimated $8.4 billion this year, made possible by intense market penetration and decades-long devotion to research and development in the space. 

So far, the company has managed to remain strongly profitable and has continued to expand revenue within the CF market at a steady pace. Suppose management plans for expanded approvals for younger cohorts continue to fruition over the next few years. In that case, Vertex will eventually be treating as many as 90% of all people with CF.

The company is moving its pipeline beyond CF with a handful of mid-stage clinical programs for pain relief, kidney disease, and genetic hematologic disorders like sickle cell disease. In other words, even if it eventually corners the entire CF therapy market, there will still be other growth opportunities.  

One potential catalyst is its partnership with CRISPR Therapeutics (CRSP) in developing gene-editing treatments for two rare blood disorders, which is expected to begin regulatory studies in March 2023. This means investors can look forward to a steadily increasing flow of new revenue and expanded approvals, which should significantly support the stock’s price.   Of 26 analysts offering recommendations for VRTX, 18 give the stocks a Buy rating, and 9 rate it a Hold. There are no Sell ratings. It seems likely that Vertex will reward patient investors as the steadily growing biopharma company seems ripe for expansion for years to come.