4 Top Biotech Stocks to Buy for the Remainder of 2020

The biotechnology industry has rightfully received a huge amount of attention from investors this year thanks to the pandemic. For the development of a COVID-19 vaccine or a treatment, record-breaking investments have already been made in this industry by both government and private organizations. In addition…

the demand for new drugs and treatments is increasing due to a renewed focus on the industry.

The SPDR S&P Biotech ETF (XBI), which is an indicator of the performance of biotechnology and stocks, has gained more than 78.8% since hitting its low in mid-March. This compares to the S&P 500’s 39.7% return over the same period.

The industry still has immense growth potential. According to a Fior Markets report, the global biotechnology market is expected to grow at a CAGR of 7.02% from $447.92 billion in 2019 to $ 833.34 billion by 2027.

With a promising pipeline of candidates, Amgen, Inc. (AMGN), Immunomedics, Inc. (IMMU), Seattle Genetics, Inc. (SGEN), and Genmab (GMAB) should continue to soar through the remainder of the year.

Amgen, Inc. (AMGN)

AMGN is one of the world’s leading independent biotechnology companies with a focus on developing human therapeutic medication for the treatment of cardiovascular, oncology, and neuroscience related diseases.

On October 8th, AMGN, Cytokinetics (CYTK), and Servier announced positive topline results from GALACTIC-HF, a Phase 3 pivotal clinical trial of omecamtiv mecarbil in patients with heart failure with reduced ejection fraction (HFrEF).

On October 5th, the company announced positive topline Phase 2 results from the CodeBreaK 100 clinical study, evaluating sotorasib (proposed INN for AMG 510) in 126 patients with KRAS G12C-mutant advanced non-small cell lung cancer (NSCLC), who had failed a median of two prior lines of anti-cancer therapies (immunotherapy and/or chemotherapy).

In September 2020, the company had entered into a global antibody manufacturing collaboration with Eli Lilly and Company (LLY) to significantly increase the supply capacity available for Lilly’s potential COVID-19 therapies. This would allow the two companies to generate profits from scaled up production and supply.

AMGN reported a 6% year-over-year increase in total revenues to $6.2 billion for the second quarter ending June 2020. EPS increased 7% from the year-ago value to $4.25, surpassing the consensus estimates by 11.3%.  

Analysts expect the company’s revenue to grow 11.6% for the quarter that ended September 2020 and 8.8% in the current year. EPS is expected to grow 2.7% for the last completed quarter and 5.7% in the current year. Also, the market expects the EPS to grow at a rate of 7.2% per annum over the next five years. For the second quarter ending in June, the company had $2.8 million in cash from operations and generated $4.56 million in free cash flow.

AMGN has gained around 35% since hitting its 52-week low in mid-March. The stock hit its 52-week high of $264.97 in July.

How does AMGN stack up for the POWR Ratings?

A for Trade Grade

B for Buy & Hold Grade

A for Peer Grade

B for Overall POWR Rating.

It is also ranked #1 out of 384 stocks in the Biotech industry.

Immunomedics, Inc. (IMMU)

IMMU is a leading biopharmaceutical company developing monoclonal antibody-based products for targeted cancer treatment. It recently transitioned from a research and development organization into a fully-integrated global biopharmaceutical company.

Its pipeline comprises six clinical stage product candidates. In September, Gilead Sciences (GILD) announced that…

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