2 Top Biotech Stocks to Buy Now and Hold for 5 Years or More
Saturday, Nov 16, 2024 6:08 am ET
3min read Biotechnology stocks offer investors the potential for significant returns, but they also come with higher risk. To mitigate this risk, it's essential to focus on financially robust biotech firms with promising pipelines and commercially available drugs. Here are two top biotech stocks that are well-positioned for long-term growth:
1. CRISPR Therapeutics (CRSP)
CRISPR Therapeutics is a leading player in gene therapy and gene editing, with a strong pipeline of clinical-stage programs. The company's first gene therapy, Casgevy, is expected to generate steady revenue, covering most of CRISPR's research and development costs. Additionally, CRISPR's cell therapy programs targeting cancer and atherosclerotic cardiovascular disease (ASCVD) have the potential to open up vast addressable markets and improve patients' health with a single dose.
CRISPR's partnership with Vertex Pharmaceuticals (VRTX) further enhances its financial outlook and market potential. Vertex owns 60% of the profits from CRISPR's gene-editing therapies, exa-cel for sickle cell disease and beta thalassemia. This deal provides CRISPR with a steady revenue stream and access to Vertex's expertise in rare diseases and regulatory affairs.
However, CRISPR Therapeutics faces regulatory and commercialization challenges in the coming years. The company must navigate the complex and lengthy FDA approval process for its gene therapies and ensure the safety and efficacy of its therapies. To address these challenges, CRISPR Therapeutics should continue to invest in clinical trials and collaborate with partners like Vertex Pharmaceuticals to share the financial burden and regulatory expertise.
2. Iovance Biotherapeutics (IOVA)
Iovance Biotherapeutics is another promising biotech stock, with a focus on cell therapies. The company's first treatment, Amtagvi, is expected to generate up to $475 million in sales by 2025. Iovance is expanding Amtagvi's indications, with potential approvals for non-small cell lung cancer and first-line melanoma treatment. Additionally, Iovance's pipeline includes promising candidates like LN-145 and LN-1898, targeting solid tumors and hematologic cancers, respectively.
Iovance's strategy of building a network of authorized treatment centers (ATCs) is crucial for its long-term revenue growth and market penetration. By establishing ATCs, Iovance ensures patients can access Amtagvi conveniently, increasing treatment adherence and satisfaction. Moreover, ATCs facilitate data collection and analysis, enabling Iovance to monitor treatment outcomes, optimize care, and improve its therapies.
Iovance's collaboration with other biopharmaceutical companies, such as Merck's pembrolizumab, is a strategic move to expand its pipeline and market penetration. By combining Amtagvi with pembrolizumab, Iovance aims to treat melanoma as a first-line therapy, potentially capturing a larger share of the market.
In conclusion, CRISPR Therapeutics and Iovance Biotherapeutics are two top biotech stocks well-positioned for long-term growth. Both companies have promising pipelines and strong financial outlooks, making them attractive investment opportunities for the next five years or more. However, investors should be aware of the regulatory and commercialization challenges these companies face and monitor their progress closely. By doing so, investors can capitalize on the significant potential of these biotech stocks while mitigating the inherent risks of the sector.
1. CRISPR Therapeutics (CRSP)
CRISPR Therapeutics is a leading player in gene therapy and gene editing, with a strong pipeline of clinical-stage programs. The company's first gene therapy, Casgevy, is expected to generate steady revenue, covering most of CRISPR's research and development costs. Additionally, CRISPR's cell therapy programs targeting cancer and atherosclerotic cardiovascular disease (ASCVD) have the potential to open up vast addressable markets and improve patients' health with a single dose.
CRISPR's partnership with Vertex Pharmaceuticals (VRTX) further enhances its financial outlook and market potential. Vertex owns 60% of the profits from CRISPR's gene-editing therapies, exa-cel for sickle cell disease and beta thalassemia. This deal provides CRISPR with a steady revenue stream and access to Vertex's expertise in rare diseases and regulatory affairs.
However, CRISPR Therapeutics faces regulatory and commercialization challenges in the coming years. The company must navigate the complex and lengthy FDA approval process for its gene therapies and ensure the safety and efficacy of its therapies. To address these challenges, CRISPR Therapeutics should continue to invest in clinical trials and collaborate with partners like Vertex Pharmaceuticals to share the financial burden and regulatory expertise.
2. Iovance Biotherapeutics (IOVA)
Iovance Biotherapeutics is another promising biotech stock, with a focus on cell therapies. The company's first treatment, Amtagvi, is expected to generate up to $475 million in sales by 2025. Iovance is expanding Amtagvi's indications, with potential approvals for non-small cell lung cancer and first-line melanoma treatment. Additionally, Iovance's pipeline includes promising candidates like LN-145 and LN-1898, targeting solid tumors and hematologic cancers, respectively.
Iovance's strategy of building a network of authorized treatment centers (ATCs) is crucial for its long-term revenue growth and market penetration. By establishing ATCs, Iovance ensures patients can access Amtagvi conveniently, increasing treatment adherence and satisfaction. Moreover, ATCs facilitate data collection and analysis, enabling Iovance to monitor treatment outcomes, optimize care, and improve its therapies.
Iovance's collaboration with other biopharmaceutical companies, such as Merck's pembrolizumab, is a strategic move to expand its pipeline and market penetration. By combining Amtagvi with pembrolizumab, Iovance aims to treat melanoma as a first-line therapy, potentially capturing a larger share of the market.
In conclusion, CRISPR Therapeutics and Iovance Biotherapeutics are two top biotech stocks well-positioned for long-term growth. Both companies have promising pipelines and strong financial outlooks, making them attractive investment opportunities for the next five years or more. However, investors should be aware of the regulatory and commercialization challenges these companies face and monitor their progress closely. By doing so, investors can capitalize on the significant potential of these biotech stocks while mitigating the inherent risks of the sector.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.