The biotech sector is booming right now, with the IBB rising more than 15% year-to-date. To see if this trend can continue, let’s compare two of the biggest names in the industry: Vertex Pharmaceuticals (NASDAQ: VRTX) and Gilead Sciences (NASDAQ: GILD). We’ll look at the competition they face and their potential upside so you can decide which one offers the best value at current prices.
What is gene therapy?
Gene therapy is a type of treatment that involves repairing or replacing a faulty gene. This can be done using a virus, which is used to deliver the new gene into the cells. The new gene then replaces the faulty gene, which helps to correct the underlying genetic disorder. There are two main types of gene therapy: in vivo and ex vivo. In vivo gene therapy involves directly delivering the new gene into the cells, while ex vivo involves taking out cells from the body, correcting them in a laboratory, and then putting them back into the body.
Getting into gene therapy
Gene therapy is one of the most promising and cutting-edge medical treatments available today. And while it’s still in its early stages, there are already a few companies working on this promising technology. One of these companies is Bluebird Bio, and their stock has been on a tear lately. So, is this the best biotech stock to buy now?
Where should you invest in biotech stocks?
When it comes to biotech stocks, there are a few things you should look for before investing. First, consider the company’s market position. What is their share of the overall market? Are they a leader or followers in their space? You’ll also want to look at their financials. How much debt do they have? What is their cash flow situation? Finally, don’t forget about the FDA approval process. A company could have a great product, but if they can’t get FDA approval, it won’t matter. With all that in mind, let’s take a look at one potential biotech stock to buy now.
Gilead Sciences, Inc. (GILD)
The company’s stock has been on a tear lately, up nearly 30% over the past year. The stock is currently trading at around $88 per share. So, is Gilead Sciences the best biotech stock to buy now?
Here are three reasons to consider buying GILD stock:
1. Gilead Sciences is a leader in the biotech industry. The company’s market cap of $102.43 billion makes it one of the largest biotech companies in the world. And its stock has been on a tear lately, up nearly 30% in the past year.
2. Gilead Sciences has strong fundamentals.
Incyte Corporation (INCY)
Agios Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company committed to discovering and developing novel small molecule therapeutics to treat cancer and other rare genetic diseases. The Company’s product candidates are derived from its two disease-focused programs: inborn errors of metabolism (IEM) and cancer metabolism. Agios has built a large and growing intellectual property estate with approximately 1,400 issued patents and pending applications worldwide. The Company’s strategy is to build a sustainable business by focusing on scientific innovation, disciplined execution, and building an enduring culture.
Mirati Therapeutics, Inc. (MRTX)
Mirati Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing a pipeline of novel, small-molecule drugs to treat cancer. The company’s lead drug candidate is saracatinib, which is in clinical trials for the treatment of non-small cell lung cancer (NSCLC) and kidney cancer. Mirati also has several other drug candidates in early-stage development.
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Spark Therapeutics, Inc. (ONCE)
With a promising new gene therapy for hemophilia B and a market capitalization of just $3.4 billion, Spark Therapeutics is a biotech stock that could have big upside potential. The company’s shares have already tripled since 2016, and analysts expect continued growth. So, is this the best biotech stock to buy now? Let’s take a closer look.
Agios Pharmaceuticals, Inc. (AGIO)
Agios Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on discovering and developing novel therapeutics to treat cancer and other rare diseases. The company’s first product, AG-221, is in Phase I/II clinical trials for the treatment of acute myeloid leukemia (AML). AG-221 is a targeted therapy that inhibits an enzyme known as IDH2. Mutations in the IDH2 gene are found in approximately 30% of patients with AML. Inhibition of IDH2 has shown promise in animal models of AML, and the company is hopeful that AG-221 will be able to provide a new treatment option for patients with this disease.