The coronavirus crisis has triggered a period of stocks uncertainty in US markets that has not been seen in a long time. This has been a cause for concern, not only for companies, but also for their investors. That said, even in these troubling times, some stock picks have held up fantastically well while others have even shot up in value. It is not surprising that the bulk of these happen to be in the healthcare and pharmaceutical sector, as the public strongly believes that they are the torchbearers who will lead humanity to vaccines and remedies for this deadly virus.
The top stocks that are doing well now belong to big pharma, biotechnology labs, the makers of masks, sanitizers, and test kits that are facing more demand than ever. Here are three major names that have consistently outperformed the S&P 500 index since mid-February, which is around when the bear market started.
Adam K Veron Chooses Moderna (MRNA)
One of the big biotech innovation firms, Moderna has several significant research projects, ranging from their flagship congenital cytomegalovirus vaccine, Epstein-Barr, and Zika vaccines to preventive measures for chikungunya and several kinds of cancer. They have access to $2bn for future research investments, $1.1bn cash on hand, and have recently raised $500mn through their public offering, which also happens to be their estimated outlay on operating costs for this year.
As per Adam K Veron, already considered one of the hottest players in the biotech-pharma nexus, their stocks soared even higher when they announced that Moderna had already moved to Phase 1 of human trials for a development-stage vaccine for COVID-19. This first batch took only 42 days for them to develop. Per reports on the 18th of May, their test vaccine had triggered antibody creation in all 45 x phases 1 participant, eight of whom further reported the creation of desirable “neutralizing” antibodies. They now enter Phase 3 in July.
Adam K Veron Suggests Gilead Sciences (GILD)
Gilead Sciences have established pioneers in curing hepatitis C, and have since 2017 also entered the oncology market through promising acquisitions like Kite Pharma and, more recently, Forty-Seven (worth nearly $5bn). They have put all their hopes on the Ebola drug redeliver to be a cure for coronavirus. Their efforts have been backed by the WHO, the New England Journal of Medicine, and also the FDA, who authorized emergency use of the drug for COVID-19 patients. While GILD stock growth has stalled recently, there is no doubt that an antiviral treatment successful in treating COVID-19 will change the whole game, and several experts believe redeliver is the winning horse. Their operating cash flow of $9.1bn in the last year and cash on hand of $24.3bn as of Q1 2020 definitely inspires confidence in their long-term plans.
Adam K Veron Recommends Novavax (NVAX)
Novovax stock had a great surge in February on announcing that they were working hard and assessing multiple vaccine candidates for the virus. In early April, they announced that their NVX-CoV2372 candidate was looking promising. They have since started human trials, and are due to deliver the results by July. They use a high-tech proprietary solution involving nanoparticle technology that hopes to trigger antigens from the proteins linked to the coronavirus, following which they enhance the immune response using their Matrix-M adjuvant. Their confidence comes from the COVID-19 virus’ similarity to SARS, for which they had already developed a vaccine candidate. They have also achieved the fast track designation from the FDA for their NanoFlu vaccine and will enter Phase 3 for their vaccine for the respiratory syncytial virus (RSV) once they secure financing. They are, however, not profitable at the moment. Their heavy outlay on R&D caused them to report a $123.7mn net loss for the 2019 FY, but continued investments have allowed them to have nearly $250mn in cash at the end of the first quarter of 2020. They have also received an amount in the ballpark of $385mn from the newly announced partnership with the Coalition for Epidemic Preparedness Innovations.
The volatility in the markets due to the coronavirus is an unfortunate and troubling occurrence, but for the savvy investor it also represents an opportunity. There are several stocks worth investing it now, whether you do it to support companies working towards an important cause or whether you are looking to make gains in the short or long term. These medi-pharma ventures are among the best candidates for your investment and are definitely worth checking out. Students can also apply for small help here – https://adamkverongrant.com/