3 Biotech Stocks to Watch

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3 Biotech Stocks to Watch

Biotech stocks can deliver huge returns for your portfolio. They have made some impressive moves over the last few years. You should take a look at this dynamic sector that holds promising returns for investors. 

Introduction

Biotech has been making the waves over the last few years. The past of biotech stocks was glorious, but the future even looks more promising. We need novel drugs to solve a myriad of health problems. And the more drugs discovered and their sales ramp, the more biotech corporations grow. 

A notable feature of biotech companies is their willingness to always share the strides they are making in their operations. Consequently, their stocks are prone to movement from time to time.  

Here are 3 biotech stocks that can make your portfolio happier.

Catalyst Pharmaceuticals (Nasdaq: CPRX)

Catalyst Pharmaceuticals received FDA approval for Firdapase, its product for treating Lambert-Eaton Myasthenic Syndrome (LEMS) in November 2018. Although LEMS has a low rate of occurrence, it can be a life-threatening condition. Correspondingly, Catalyst’s stock had an incredibly positive run afterwards.

However, the company’s relationship with Jacobus Pharmaceuticals, its competitor that got an FDA approval in May for its drug, Ruzurgi, which rivals Firdapase in every way, is interesting.  

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Nevertheless, Catalyst Pharmaceuticals has a strong competitive profile. Notwithstanding the recent drop in its stock in recent times, it ranks as a very good buy. Hence, you might want to consider it added to your portfolio, to benefit from its potential rally in price.

Celgene (Nasdaq: CELG)

Of high importance to Celgene’s success is its assembly of key products. These products include Pomalyst for the treatment of multiple myeloma, Otezla for immunological conditions, and the cancer drug, Abraxane. The company has been able to generate revenue growth on those products year over year, with Promalyst and Otezla recording a 26% growth in 2018. 

©TradingView. July 19, 2019.

For Abraxane, the cancer drug, alone, revenue rose by 7% in 2018. Revenue for Revlimid, the blood cancer drug, also increased by 18%, with almost $9.7 billion generated in sales. Revlimid is one of the highest-selling drugs in the world. Overall, 2018 being an impressive year for the company, also saw its earning per share (EPS) rise by approximately 20%. 

Exelixis (Nasdaq: EXEL)

2018 might as well be tagged as the Almighty Exelixis year: the company recorded 90% growth in its revenue for the year! Its adjusted earning per share (EPS) also almost increased by three folds. 

Of its currently approved catalogue of products, Cabometyx has been a blockbuster success. Cabometyx is indicated in the treatment of advanced renal cell carcinoma which is the most common type of kidney cancer. 

At the end of the 2018 financial year, Exelixis had about $852 million in cash position. The company, a member of the Standard & Poor’s (S&P) Midcap 400 index, which measures the performance of profitable mid-sized companies, is set to release its 2019 Q2 on July 31.

©TradingView. July 19, 2019.

Exelisis’s share price has appreciated by a whopping 474% over the past five years.

About Travis Garlick 1531 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.