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

Healthcare tech company.Have recently been short the stock in the past.Not sure how financials are going to improve.Poor management of company.Not a good long term holding.

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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

She wishes that today's upgrade had come earlier. 2023 earnings will be flat, not great, but they have some new drugs will drive earnings in the future. This stock could do nothing for a while, but nothing wrong to hold it; earnings may stay flat.

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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

No new drugs or trials. Doing nothing interesting. Prefers Eli Lilly.

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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

PFE vs. ABBV Prefers ABBV. Main overhang to PFE is what happens to the vaccine franchise now that we're on the other side of Covid? PFE will need other engines, it's a show-me story. ABBV is a leader in immunology. Humira is coming off patent, which will compress earnings, but that's well-known by the market.…

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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

The FDA figure who was key in getting their Alzheimer's drug recently left the FDA, but all the Alzheimer's plays declined except Biogen.

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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

They have zero economic sensitivity (good) and has enough drugs in the pipeline to beat future estimates. Always pays an above-average dividend.

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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

Granddaddy of biotech. Even better than it used to be. Very deep bench of drugs. New acquisition will add growth on top of already-decent growth. Very strong financials. Income opportunity, stability, and some growth not yet fully priced in. Yield is 3.14%, well covered at 42%, increased by 11% average annually over 5 years. (Analysts’…

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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

The whole drug industry has been under pressure for the past 30 years and is having more and more trouble coming up with new drugs. R&D costs are increasing so he doesn't like the pharmaceutical industry in general. In response to a question regarding the currency component he doesn't feel it is an issue.

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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

Covid turned everything on its head. Surgeries have been put off. Revenues, cashflow, and earnings have gone flat. We need the catalyst of more procedures and loosening of the hospital system, he doesn't know when this will happen. A fine company, but it's hard to predict when reality might change.

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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 Dec 09/22, Down 8%) Still owns shares in the company.Believes healthcare a good defensive name.Target price of $110 per share.Good performance in the past for the portfolio.Averaged 16% growth the past 5 years.Good company for the long term investor.

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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 Mar 16/22, Up 0.1%) Fell a lot through Covid decline in elective surgeries. Great place to be over the long term. Aging demographics in its favour.

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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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