Biotechnology, Gene-editing and Medical Research Stocks to Buy in 2019
The medical space has been a hot sector these past few years, and have widely outperformed the market. These sectors are defensive as they are not tied to an economic cycle. Furthermore, medical, biotech and gene-editing firms will profit from the aging population and growing need for these services and drugs.
Recently, the sector has pulled back due to promises by the US government to lower drug prices and further regulate the sector. However, it seems analysts are still bullish for the sector. The next election cycle will be a key turning point for these stocks.
👩⚕️ Biotechnology & Medical Research
Canada Stocks
Resverlogix Corp. (RVX-T)
A clinical biotechnology company that develops epigenetic drugs that treats neurodegenerative diseases, diabetes and other chronic illnesses. They are currently paying down debt.
Opinion about RVX.TO: Treatment of Cardiovascular diseases. They’re on to a new way of looking at HDL treatment. Still pre-clinical. Prefers biotech…
Stockchase Spectral Med Inc (EDT-T)
A multinational company that specializes in endotoxin activity assay (EAA) diagnostic and therapy services. The EAA diagnostic product is their main revenue driver.
Opinion about EDT.TO: A really neat little company. Good funding of their R&D. They have revenue and operating profits. Agreement with Cardinal will…
Stockchase Microbix Biosystems (MBX-T)
A biomedical testing company that saw earnings up 40% last quarter. They are increasing capacity and is trading at a reasonable PE. Robert McWhirter choses it as a top pick in May.
Opinion about MBX.TO: Been around for a long time. Has a broad range of technologies. Have recently signed licensed for Virusmax, which can double…
Stockchase Reliq Health Techniques (RHT-X)
A software as a service solution company for remote patient monitoring, telemedicine and collaborative care. The stock experienced a pullback but it is starting to recover due to their long-term potential.
Opinion about RHT.V: A former top pick. They have long-term potential, but need to show they can add clients and be cash-flow positive. The stock is…
Stockchase Neptune Wellness Solutions Inc. (NEPT-T)
A nutrition products company that focuses on unique nutrition solutions with specialty ingredients. They are shifting their focus from krill oil extraction to cannabis oil.
Opinion about NEPT.TO: (A Top Pick April 7/15. Down 44.35%.) He is still buying this. The old management was booted out, and a really good new…
Stockchase U.S.Stocks
CRISPR Therapeutics AG (CRSP-Q)
A small cap company that develops gene medication. They recently closed a deal with a pharma company that will help scale their products.
Opinion about CRSP: They produce a gene-editing tool that splices DNA that has the potential of curing diseases such as Huntington's Chorea and…
Stockchase Regeneron Pharmaceuticals Inc (REGN-Q)
A biotech company. That has several core products generating good free cash flow. Their partners include Sanofi to treat severe asthma. Paul MacDonald chose it as a Top Pick in July.
Opinion about REGN: His favourite stock in his favourite sector. It is up 18% YTD. Expert opinions on Regeneron Pharmaceuticals Inc (REGN) — buy,…
Stockchase First Trust Biotechnology Index Fund (FBT-N)
An investment fund that corresponds to the NYSE Arca Biotechnology IndexSM. It tracks the performance of small, mid and large cap companies in the biotech industry.
Opinion about FBT: Seasonality on this is from around the middle of April through until September. This has a lot to do with the large number of…
Stockchase Gilead Sciences Inc. (GILD-Q)
A pharmaceutical company that produces high priced drugs for hepatitis C and HIV. It trades at less than 9 times earnings with a 4% yield.
Opinion about GILD: (A Top Pick Oct 27/20, Up 6.6%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with GILD has triggered its stop at…
Stockchase Pharmaceuticals
Pfizer Inc (PFE-N)
An American pharmaceutical corporation that produces a variety of well known drugs. The seasonal weakness is in mid-October. It is currently consolidating and is sure to appreciate in the near future.
Opinion about PFE: Pays a 6.9% dividend. The Covid vaccine days are long gone, so shares have been stuck around $25 for months. So, you still get a…
Stockchase Biogen IDEC Inc. (BIIB-Q)
A multinational biotechnology company that treats neurodegenerative diseases using innovative techniques. This was dragged down along with the whole sector. They experienced a pullback after they closed an Alzheimer study that caught the market by surprise.
Opinion about BIIB: He doesn't like their chart. Sell if it closes below $220. Institutions are selling it, and it's selling on weak volume. Had a…
Stockchase Bristol Myers Squibb (BMY-N)
A large cap American pharma company that produces prescription drugs for several therapeutic areas. Their latest drugs haven’t done as well as hoped. They are currently in discussion to merge with CELG-Q.
Opinion about BMY: Stock has been hot since the summer when the new CEO took over, then they got approval for their schizophrenia drugs. (Abbvie's…
Stockchase Novartis AG (NVS-N)
One of the largest multinational Swiss pharmaceutical company. They are refocusing on generic drugs and have sold their ophthalmology business.
Opinion about NVS: The global pharma industry is under this cloud. The whole subsector is really struggling. They have come off their bottoms, but…
Stockchase Amgen Inc. (AMGN-Q)
A biopharmaceutical company that is the world’s largest independent biotech firm. It is considered the preeminent biotech companies with some good drugs. It trades at a 11x earning which is considered reasonable.
Opinion about AMGN: One of the oldest biotech companies in the world. Very big portfolio of products. Revenue last quarter up 9%, with 15 products…
Stockchase Mylan Inc (MYL-Q)
A global generic and specialty pharmaceuticals company. This is the company that produces Epi Pens. Analysts are uncertain since there is a lot of headwinds on pricing and government intervention.
Opinion about MYL: Recently acquired King Pharmaceuticals. Expert opinions on Mylan Inc (MYL) — buy, sell, or hold ratings from Canadian and US…
Stockchase Eli Lilly & Co. (LLY-N)
A global pharma company that recently made an acquisition in oncology. They recently had one of their popular drugs withdrawn. They outperformed in 2018 Q4 and they have potential blockbuster diabetes and heart disease drugs in the pipeline.
Opinion about LLY: (A Top Pick Mar 19/25, Up 29%) (Note the short timeframe.) Hitting all-time highs. At her original target price, which she's now…
Stockchase Medical Equipment, Supplies & Distribution
Medtronic Inc (MDT-N)
The maker of the first pacemaker and several other similar devices. They are starting to enter emerging markets such as India and Bangladesh where there is a need for these devices. Michael Decter chose this as a top pick on October 2, 2019.
Opinion about MDT: (A Top Pick Jan 13/23, Up 10%) Demand for healthcare electronics not slowing down. Business continues to perform. However,…
Stockchase Baxter International Inc (BAX-N)
A Fortune 500 health care company. The dividend is very high though current valuations are quite rich. They are focusing on new product developments that generates good growth.
Opinion about BAX: Diversified US healthcare stock. Biggest player in Kidney Dialysis. Earnings came in recently a little lighter than the street was…
Stockchase Abbott Labs (ABT-N)
A multinational diversified healthcare company. It hasn’t been impacted by the focus on drug pricing. It sells generic dugs to emerging markets. They also have a great track record of dividend increases with a yield of 1.5%
Opinion about ABT: Diversified. Over 60% of sales come from outside US, so a more globally balanced name in the sector. 10/10 on fundamentals.…
Stockchase Becton Dickinson (BDX-N)
A medtech company that manufactures medical devices, instrument systems and reagents. It is in medical supplies, not drugs, and supplies primarily to hospitals. A product under FDA review has made the price pull back. They have a good record of dividend appreciation and have opportunities ahead. Barry Schwartz chose it as a top pick on June 24, 2019.
Opinion about BDX: (A Top Pick Apr 21/20, Down 4%) Hurt during Covid by surgeries not being performed. Should have a strong 2021.
Stockchase Stryker Corp. (SYK-N)
A Fortune 500 medtech firm. They are a leader in robotic surgery and have great organic growth. It is as defensive name since it is not tied to the economic cycle.
Opinion about SYK: Good products, good reputation. Good long-term investment in the medical device area. If you own it, keep holding. Her exposure to…
Stockchase Alpha Pro Tech (APT-A)
A company that has a building supplies business and hospital protection business. Whenever there is a pandemic scare, this company takes off. If there is another scare, this will do well.
Opinion about APT: Protective gear for epidemics. Based in Ontario. Revenues are normally north of $40 million but with the last wave of paranoia,…
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