Popular on EntSun
- Female Motorsports Sponsorship & Expansion; Acquisition Agreement of UAE-Based Sports Incubator by Online Lottery & Sports Game Provider: Lottery.com - 228
- WOA Entertainment Group Unveils Independent No.1's: Breakthrough Artists II —A Celebration of Indie Excellence - 210
- Experience Trembling Firsthand with the New AgeMan® Tremor Simulator - 208
- Edtech Startup Young Commanders Launches 'Visionaries Without Sight' Collection Celebrating Blind and Visually Impaired Historical Figures - 201
- Let's Talk Series: At the Crossroads: Immigration Today - 150
- IRF Builders Forum Brings Global Leaders to Washington, D.C. to Advance Religious Freedom Through Cooperative Engagement - 142
- TEDxInglewood Returns to The Miracle Theater on August 9, 2025 — Celebrating Bold Ideas and Community Energy - 133
- Manhattan Boutique Real Estate Collaborates with InterContinental Hotels NYC in a Branding Partners Personalized Approach - 127
- Token-Operated Sake Service Opens at Tobu Nikko Station - 120
- JMC Princess Announces Release of Empowering New Single "PRETTY" – A Summer Anthem for Young Girls Everywhere - 118
Similar on EntSun
- $18 Price Target Issued in New Research Report After $34 Million Revenue Forecast from Acquisition; $101.5 Million Net Revenue in 2025; NAS DAQ: IQST
- West Dentistry Welcomes New Oral Surgeon to Enhance Patient Care
- AI Innovation Dual-Strategy Business Model Focused on Real Estate Development for Strategic Expansion: OFA Group, (N A S D A Q: OFAL)
- $17.4 Million Total Revenue for First Half of 2025 (up 31.8% YOY) for Global Wet Trades Services Provider with High Value Bitcoin Investments
- Plan to Launch Silo Technologies' Cybersecurity Pilot Program for Ultimate Nationwide Deployment via Exclusive Partnership: Stock Symbol: BULT
- Robert Michael & Co. Real Estate Team Celebrates Industry Recognition and Showcases Premier Central Florida Listings
- AI-Based Neurotoxin Countermeasure Initiative Launched to Address Emerging National Security Needs: Renovaro, Inc. (N A S D A Q: RENB)
- $796,000 in Q2 Revenue Marks Highest Earnings to Date on 3 Trailing Quarters of Profitability in Multi-Billion Homebuilding Sector: Stock Symbol: IVDN
- Cybersecurity is THE Hot Market Sector; Revenues, Earnings & Profit matter; Only 33 Million Shares + a Huge Short Position Equal an Undervalued Stock
- Despite Global Calls for a Ban, US Child Psychiatry Pushes Electroshock for Kids
Braeden Lichti: The Complicated World of Biotech Investments in the Era of COVID-19
EntSun News/10823956
VANCOUVER, British Columbia - EntSun -- Investors are excited about biotechnology stocks in the time of the novel coronavirus. The Wall Street Journal reports that small and medium biotech stocks are near record highs, with a 60% resurgence in value since March.
Indeed, the time is ripe for biotech companies to cash in on COVID-19 via pursuit of novel drug therapies and vaccines for the condition, which currently has no cure. But risky biotech companies are taking advantage of the COVID-19 market in an effort to gain more investors for pharma products which may ultimately fail.
Sources of Risk in Biotech and Pharma
The biotech industry is notorious for its high risk, so in a COVID-19 world, more than ever, investors need to look for long-term value from prospective biotech investments. Sources of risk in the biotechnology and pharma industry – even before the current environment – include:
A key aspect of investing in biotech has always been to minimize the inherent risk as much as possible. This means looking at the company's foundation and whether they are an established leader in the field. Instead of examining how companies are faring in the COVID-19 world, consider tried-and-true leaders in pharma and biotech, which are likely to play a major effort in COVID-19 due to their leadership in the space.
Opting for low-risk stocks which performed well before the economic downturn associated with the ongoing pandemic can help improve the success of your portfolio in the long term. These companies include:
The Bottom Line
Biotech investors should focus on long-term investing strategies with proven, big pharma companies. They should avoid small, undercapitalized biotech companies that are simply chasing trends.
Indeed, the time is ripe for biotech companies to cash in on COVID-19 via pursuit of novel drug therapies and vaccines for the condition, which currently has no cure. But risky biotech companies are taking advantage of the COVID-19 market in an effort to gain more investors for pharma products which may ultimately fail.
Sources of Risk in Biotech and Pharma
The biotech industry is notorious for its high risk, so in a COVID-19 world, more than ever, investors need to look for long-term value from prospective biotech investments. Sources of risk in the biotechnology and pharma industry – even before the current environment – include:
- Companies' acquisition by other companies
Biotech is a fast-paced and dynamic world, and companies may join forces to work on a shared goal. GlaxoSmithKline has acquired 21 companies over the past decade alone, according to Crunchbase. In an alternative scenario, two companies may race towards a cure, with one company inevitably losing out. - Drugs failing in clinical trials after seeming promising in the preclinical world
While it may take ten years just for a drug to enter the clinical trials process from the laboratory, this protracted timeframe may not spell success. In 2019, Merck's cancer immunotherapy Keytruda, one of the company's strongest drugs, failed in Phase 3 clinical trials for treatment of a specific type of liver cancer. Also in 2019, Bristol Myers Squibb's Obdivo failed in a Phase 3 brain cancer trial.
More on EntSun News- Collision Course Concert Series Returns to Atlanta
- $18 Price Target Issued in New Research Report After $34 Million Revenue Forecast from Acquisition; $101.5 Million Net Revenue in 2025; NAS DAQ: IQST
- West Dentistry Welcomes New Oral Surgeon to Enhance Patient Care
- BayView Entertainment, Inc. Releases Multi Award-Winning Horror Film 'The Forest Through the Trees'
- Germantown Fashion & Arts Festival 2025 Draws Thousands, Celebrates Creativity in Historic Philly
- Adverse effects which cause drugs to promptly be pulled off the market
In 2004, Merck recalled another blockbuster drug, the painkiller Vioxx, after patients began suffering heart attacks and strokes.
A key aspect of investing in biotech has always been to minimize the inherent risk as much as possible. This means looking at the company's foundation and whether they are an established leader in the field. Instead of examining how companies are faring in the COVID-19 world, consider tried-and-true leaders in pharma and biotech, which are likely to play a major effort in COVID-19 due to their leadership in the space.
Opting for low-risk stocks which performed well before the economic downturn associated with the ongoing pandemic can help improve the success of your portfolio in the long term. These companies include:
- Johnson and Johnson (JNJ), a company with $82.8 billion in sales, which recently announced work on a COVID-19 vaccine and is listed at #34 in Forbes Global 2000 2020.
- Abbott Labs (ABT), which recently unveiled 5-minute point-of-care testing for the novel coronavirus which can be used at pharmacies and doctor's offices. Upon this news, the stock price rose nearly 50% from its low price of approximately $69 during the lowest point of the economic downturn to about $90 per share.
More on EntSun News- The AML Shop Launches New Financial Investigations Unit, Appoints Director to Lead the Initiative
- Raidium révolutionne le diagnostic de la Sclérose en Plaques en partenariat avec l'Hôpital Fondation Adolphe de Rothschild
- New Media Film Festival Announces Winners
- New Podcast "Spreading the Good BUZZ" Hosted by Josh and Heidi Case Launches July 7th with Explosive Global Reach and a Mission to Transform Lives
- The Herbal Care, Led by Markel Bababekov, Becomes a Top Dispensary in NYC's Upper East Side
- Gilead Sciences (GLD), a company listed at #186 in the Forbes Global 2000 2020, which recently experienced new popularity as its antiviral treatment, Remdesivir, obtained fast-track FDA approval as a treatment for COVID-19.
- Pharma giant AstraZeneca (AZN) recently announced a landmark agreement with Oxford University towards making a COVID-19 vaccine a reality for millions around the world.
The Bottom Line
Biotech investors should focus on long-term investing strategies with proven, big pharma companies. They should avoid small, undercapitalized biotech companies that are simply chasing trends.
Source: Braeden Lichti
Filed Under: Investment
0 Comments
Latest on EntSun News
- Jekale (JK) Debuts R-B Single "Jungle" Inspired by Fashion, Storytelling, and Self-Discovery
- Favorite Wedding Décor Ideas to Inspire Your Big Day: From Vision to Venue
- Infinite Health Introduces Cutting-Edge Regenerative Medicine for Wound Care with Trip Goolsby, MD
- Riser Music's LYKN Adds India, Mexico & U.s. Dates To "unleashed" World Tour
- A Theatrical Experience Like No Other: "A Praying Mama, A Rebellious Son" Comes August 30
- Prolific Hollywood Actor Phillip E. Walker-MFA is Experiencing His Best Year of Employment Ever
- Top Dentist Concord CA, Smile Makers Dental Care, Celebrates 500 5-Star Reviews
- Bio-Inspired Technology-Dynamic and Adaptable for unknown real-world environments
- ALIVE and KICKING: LAUGHTER NEVER GETS OLD has its World Premiere July 11-20 in St. Charles, IL
- Michael Reafsnyder opens solo exhibition at Scott Richards Contemporary Art in San Francisco
- Valley Sleep Therapy Expands to Prescott with New Location at Crossings Road
- Live Courageously Hosts Ann-Marie Murrell, Author, Journalist, Former Political Commentator
- $17.4 Million Total Revenue for First Half of 2025 (up 31.8% YOY) for Global Wet Trades Services Provider with High Value Bitcoin Investments
- $12.8 Million Net Revenue for 2024 for Cloud-Based Crowdsourcing Recruitment and SaaS-Enabled HR Solutions Provider: Baiya International Group Inc
- YYNOT Brings High-Energy RUSH Tribute to the Weinberg Center this September
- Hire Virtue Announces Executive Sponsorship Opportunity for Houston Hiring Blitz & Job Fair on August 6, 2025
- Inked & Maxim Model Teisha Mechetti Turns Heads—And Builds Community Impact
- Plan to Launch Silo Technologies' Cybersecurity Pilot Program for Ultimate Nationwide Deployment via Exclusive Partnership: Stock Symbol: BULT
- Climaxe Throwing Celebrates 3-Year Anniversary with Grand Re-Opening Under New Ownership
- Robert Michael & Co. Real Estate Team Celebrates Industry Recognition and Showcases Premier Central Florida Listings