Popular on eTradeWire
- 227's™ YouTube Chili' TRAGEDY ALERT! Cam & Fam YouTuber Dead at 19! #NIKE'Spicy' NBA! 379
- Motaz H Matar's Virtual Tour for New Book The Pigeon Whisperer 245
- Visual Artist Kae Cheatham Maintains a Strong Online Presence 189
- Ashley Argota, iPOP Alum, to Star in New Comedy Thriller 'Don't Log Off' 166
- Judge Orders End to Detaining Immigrant Children in Hotels 154
- Female Founders Pitch Summit Commits To Fund More Women-Led Companies 134
- Words fly off the page as learning goes through the roof for Kindergarten 127
- Titan Funding Solutions – Competitive Financial Options for Business Development 126
- Proudfoot & Savigent Introduce Operational Resiliency Excellence 125
- Calling all artisans: New platform introduces low-fee marketplace for independent artists 117
Similar on eTradeWire
- Phenylalanine Ammonia-Lyase Activity Assay Kit
- Accurate Rubber Corporation is Proud to Announce ISO 9001:2015 Certification
- Nous Imaging Receives 510(k) Clearance from FDA for FIRMM Software
- Phytase Activity Assay Kit (Fluorometric)
- Permian Museum Adds Gallery of Unknown Life Forms
- Tucson Small Scale Development Workshop Set for Oct. 6
- Malaria research article cites use of HemogloBind™ in reticulocyte study
- Accelerate Declares Quarterly Distributions
- ViridisChem expands its market reach with key distribution partnership in South Korea
- How 3 companies have teamed up to get you back to "Normal Life"
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 eTradeWire News
- Blaqq Production Wins Their First Award for their First Project
- AUA, CIMT Forge Agreement Creating Med School Pathway for Canadian Students
- Churches And Communities Unite To Pray Over Schools For Second We Pray San Diego Gathering
- Astoria Knights FC Announces Youth Academy Expansion and Community Development Platform
- Travelers Haven Expands Leadership Team
- 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 eTradeWire News
- Mick Strawn and Jeremy Brown to co-direct The House In The Pines
- Celebrate 30 Years Of Beverly Hills 90210 With The Beverly Hills 90210 Podcast Super Show
- D & G Collins Enterprises, Inc awarded a GSA Multiple Award Schedule Contract assisted by Mr. Brian Peterson and Government Marketplace LLC
- Attorney Andrea Davis Opens Regional Law Firm
- Linlin Julia Qian Joins Blockchain of Things' Board of Directors
- 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.
- Journalists Under Siege In Rwanda
- President and CEO of Office Pride Commercial Cleaning Services releases book offering an appealing substitute for the corporate grind
- All I Ever Wanted Tops Indie Charts!
- Don't Miss Out on This 2016 Used Mazda3
- Princeton Properties purchases two apartment communities in New Hampshire
- Life's Grape Expands Retail Distribution & Transports You to Your Childhood Found In the Snack Aisle
- French Craft Collective Returns For 2020
- Ushio Care222® Module Included in FORTUNE's Annual Change the World List
- Racing Shell Covers is Expanding
- Indiana Operator Combines Streaming and Linear Video Service
- Harrisburg Braces Cost Only $3,995, Including X-Rays
- Estate agents have compassion for wild neighbours
- Custom Move Management Company Essential Next Steps Gets a New Look
- Omnichain's Diane Sullivan Named to Supply & Demand Chain Executive's Women in Supply Chain List
- The Nissani Team Completes Miami Beach Commercial Condo Sale In Under 45 Days
- Ideanomics Hires Dr. Liqing Hu a Fuel Cell Expert For Its EV Truck Division
- Past the Wire's "Gate to Wire" podcast hits the ground running
- Top Reasons to Buy Your Jewellery Online to Find Unique Items
- R.L. Dean Releases New Sci-fi Fantasy Collection - Blood of the Prince: Omnibus
- Medicare doesn't pay for Everything - C Nagdeman