One of the most exciting sectors in the stock market is biotechnology. No other sector has the same promise of extraordinary rewards for investors as biotech stocks, to say nothing of the patients who will benefit from the new drugs and treatments that are developed.
Biotechnology companies are working in solutions for some of the worlds most feared and widespread diseases. They are searching for way to make life both better and longer with some degree of success.
Every year new drugs are introduced that treat things like cancer, hepatitis, diabetes, HIV and other diseases. The companies that develop successful drugs have the potential to drive wildly successful biotech stocks.
The flip side of that is that those who disappoint or fail to get their drugs approved can see their stock price collapse. Fortunately we can use Portfolio Grader to help find those biotech stocks that have the very best fundamentals and greatest chance for an investing success story.
Let’s take a look at what Portfolio grader has in mind for biotech stocks to buy now:
Biotech Stocks to Buy: INSYS Therapeutics (INSYS)
INSYS Therapeutics (INSY) is a biotech company that focuses on developing pharmaceutical products that target the unmet needs of cancer patients, with a focus on cancer-supportive care. Their products include drugs that help patients deal with pain form the disease and help alleviate nausea and pain from chemotherapy. The company reported earnings this week and both profits and sales have exploded higher.
New prescriptions for Subsys, a drug used to alleviate breakthrough pain for cancer patients, was the leading reason for the excellent performance. The company has a strong pipeline as well and expects to file at least New Drug Application and at least four Investigational New Drug applications in 2014. Portfolio Grader upgraded the stock back in August and this biotechnology stock is still a strong buy based on the superior fundamental.
Questcor Pharmaceuticals (QCOR) makes drugs that help patients with serious medical problems. Most of their sales are from Acthar an injectable drug used in 19 indications. Most of the revenues are derived from patients with adults with multiple sclerosis and children under 2 who suffer from infantile spasms. The drug is also approved for the treatment of lupus erythematosus.
The company’s other leading drug is Doral which is approved for treating insomnia. Earnings are up over 100% so far this year and the stock was upgraded to an A by Portfolio Grader back in September.
QCOR is a strong buy at the current price.
Biotech Stocks to Buy: Ligand Pharmaceuticals (LGND)
Ligand Pharmacuticals (LGND) is a biotech company that focuses on acquisition and development of royalty revenue generating assets in the United States. Ligand has relationships with most of the leading drug companies including GlaxoSmithKline (GSK), Merck (MRK), Bristol-Myers (BMY), Eli Lilly (LLY) and others.
The company has several products including strong portfolio of drugs distributed among a variety of partners, taking in royalties for Promacta, for the treatment of chronic immune thrombocytopenic purpura, Kyprolis for the treatment of multiple myeloma, Avinza, a pain therapeutic, Viviant for the treatment of postmenopausal osteoporosis and Nexterone, an injectable formulation.
They also have a strong pipeline with drugs for conditions like liver diseases and diabetes in various stages of clinical trials. Earnings have exploded this year and Portfolio Grader has ranked this biotechnology stock as an A since last May.
LGND is a strong buy at today’s price.
Biotech Stocks to Buy: Sinovac Biotech (SVA)
Sinovac Biotech LTD (SVA) is a Chinese biotech company that makes drugs to treat conditions such as hepatitis A, hepatitis B, and influenza viruses. The just announced that the phase three trials of a new drug to fight a virus called EV-71 that causes neurological conditions such hand foot and mouth disease showed great promise. Phase III trial results EV71 vaccine show that the drug had a 94.8% efficacy rate against EV71-related hand, foot, and mouth disease, and a 100% efficacy rate against EV71-associated hospitalization and against HFMD with neurologic complications.
Sinovac also just filed an application for human trials in China for a vaccine against avian flu. Profits more than doubled in their latest report and the stock receives an A form Portfolio Grader.
SVA is a strong buy at the current price.
Biotech Stocks to Buy: NPS Pharmaceuticals (NPSP)
NPS Pharmacuticals (NPSP) currently has five drugs for things like osteoporosis, hyperparathyroidism, pain management and short bowel syndrome. They focus their research efforts right now on things like gastrointestinal, psychiatric, neurological and bone and mineral disorders. The company had triple digit gains in sales and earnings in the most recent quarter and the strong fundamentals were noticed by Portfolio Grader.
The stock was upgraded to an A back in December and remains a strong buy at the current price.
Louis Navellier is the editor of Blue Chip Growth.