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.

Resverlogix Corp. (RVX-T) — Stockchase

(Market Call Minute.)Reversing of bad cholesterol in clinical studies. A little early for him but has potential. Speculative.

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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.

Spectral Med Inc (EDT-T) — Stockchase

There is nothing more powerful than a base breakout, and this had one in February of this year. This one is on a trend line right now and there is absolutely nothing wrong with the chart.

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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.

Microbix Biosystems (MBX-T) — Stockchase

Very positive on the stock price, the company, and the partnerships they're announcing. Technicals indicate the stock may head toward 90 cents, but he says higher. Just won a contract from the Ontario government. Covid testing isn't going away. Sales should triple in the next 12 months.

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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.

Reliq Health Techniques (RHT-X) — Stockchase

It provides software for hardware for patients in their homes. Has 8 1/2 million in revenue up from 1 1/2 million the year before. It expects to have 100 000 patients at $50 per month per patient with maybe a 50% margin by the end of this year. It had a couple of false starts…

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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.

Neptune Wellness Solutions Inc. (NEPT-T) — Stockchase

Doesn't know this well. They're in the cannabis sector, more in the extraction market, an area that will continue to expand. He's watching their progress in earnings.

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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.

CRISPR Therapeutics AG (CRSP-Q) — Stockchase

Their gene-editing biotechnology has lots of promise, but it's too early to tell, speculative. Buying this is a lottery ticket.

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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.

Regeneron Pharmaceuticals Inc (REGN-Q) — Stockchase

His favourite stock in his favourite sector. It is up 18% YTD.

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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.

First Trust Biotechnology Index Fund (FBT-N) — Stockchase

(A Top Pick May 8/17. Up 11.02%.) The period of seasonal strength for this is usually early May right through until the middle of July. We have reached the point where seasonality no longer applies. Now is a good time to take the money off the table.

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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.

Gilead Sciences Inc. (GILD-Q) — Stockchase

It was upgraded today. What an earnings report, and they increased full-year guidance. Their HIV franchise continues to drive the top and bottom lines. Long-term, they continue to expand in oncolocy treatments--their pipeline looks fine.

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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.

Pfizer Inc (PFE-N) — Stockchase

Sell PFE to buy MRK? Likes and owns them both. MRK is more in the immuno oncology and cancer space, whereas PFE is more diversified. Defensive and growth characteristics. MRK hit a new high today. PFE hasn't done as well, but has performed over the last 2 years. Own both for different reasons. May want…

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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.

Biogen IDEC Inc. (BIIB-Q) — Stockchase

They own almost nothing in the Health Care space and Biotech is particularly weak.

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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.

Bristol Myers Squibb (BMY-N) — Stockchase

BMY and AbbVie The line is blurred between biotech and pharma. He likes both spaces and both stocks. Aging demographics means more and more drugs. Both are have solid valuations. They pay income but also offer capital appreciation.

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Novartis AG (NVS-N)
One of the largest multinational Swiss pharmaceutical company. They are refocusing on generic drugs and have sold their ophthalmology business.

Novartis AG (NVS-N) — Stockchase

Made big money by selling off one division. Decent pipelines. Looking to sell off generic division. Dividend grows, share buybacks. Healthcare has become front and centre, and that's not going away. Safe haven. Underpriced at these levels. Yield is 3.55%. (Analysts’ price target is $88.96)

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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.

Amgen Inc. (AMGN-Q) — Stockchase

(A Top Pick Nov 01/21, Up 20%) Bought it to be defensive for 2022. They announced a new facility in San Francisco. The future looks positive.

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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.

Mylan Inc (MYL-Q) — Stockchase

TEVA-N vs. MYL-Q. He does not like either at these prices. They are both generics manufacturers. There are lots of headwinds on pricing in these categories. We have had a lot of noise on pricing of pharmaceuticals. The FDA is going to alleviate the delays on getting new drugs to market. He wants to be…

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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.

Eli Lilly & Co. (LLY-N) — Stockchase

Allan Tong’s Discover Picks You could then take that money and put it in Eli Lilly. There’s potential in LLY stock’s own Alzheimer’s drug. Also, the street is putting its hopes into LLY’s weight-loss drug, Mounjaro, when it starts selling in two or three years. After all, diabetes as at an all-time high in America.…

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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.

Medtronic Inc (MDT-N) — Stockchase

(A Top Pick Aug 09/22, Down 15.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with MDT has triggered its stop at $79. To remain disciplined, we recommend covering the position at this time.

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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.

Baxter International Inc (BAX-N) — Stockchase

Top healthcare pick. Valuation is rich, though the dividend is decent. He will suggest a better stock in Top Picks.

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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%

Abbott Labs (ABT-N) — Stockchase

(A Top Pick Oct 13/21, Down 7%) They made Covid test kits and generated $15 billion. They also have medical devices, a division that is improving, and pharmaceuticals that sell generic drugs to emerging markets, and infant formulas, but that ran into troubles. She likes their diversity and has many drugs in the pipeline. It…

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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.

Becton Dickinson (BDX-N) — Stockchase

The company supplies hospitals with medical supplies. 90% of their products are disposable. They have been hurt from COVID as operations have been delayed and it looks that may continue. In a normalized time, they are well situated for an aging population, which should translate into double-digits earnings growth going forward.

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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.

Stryker Corp. (SYK-N) — Stockchase

(A Top Pick Nov 02/21, Down 19%) Good growth internationally. Demand increasing with aging population. Great balance sheet, opportunity to make acquisitions. Trades at 22x. Pandemic backlog of elective surgeries offsets inflationary costs. Supply chain difficulties persist. He'd buy here. Yield is 1.4%.

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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.

Alpha Pro Tech (APT-A) — Stockchase

This is funny in terms of a long-term outlook. They have a buildings supplies business, and the hospital protection business. Whenever there is a pandemic in the works, this company takes off. It has been moving around $4 per share, and thinks it could go a fair bit higher. He would like to get $6+…

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