The PennZone

  • Home
  • Business
  • Health
  • Construction
  • Travel
  • Real Estate
  • Technology
  • Education
  • Marketing

Braeden Lichti: The Complicated World of Biotech Investments in the Era of COVID-19
The PennZone/10069294

Trending...
  • The AAA Metamorphosis: How Global Gaming Is Redefining Production Standards
  • Over 98% of crypto owners globally don't declare taxes, new report find
  • Award-Winning REALTOR® Paige Coker Joins Corcoran DeRonja Real Estate
VANCOUVER, British Columbia - PennZone -- Investors are excited about biotechnology stocks in the time of the novel coronavirus.  The Wall Street Journal reports that small and medium biotech stocks are near record highs, with a 60% resurgence in value since March.

Indeed, the time is ripe for biotech companies to cash in on COVID-19 via pursuit of novel drug therapies and vaccines for the condition, which currently has no cure.  But risky biotech companies are taking advantage of the COVID-19 market in an effort to gain more investors for pharma products which may ultimately fail.

Sources of Risk in Biotech and Pharma

The biotech industry is notorious for its high risk, so in a COVID-19 world, more than ever, investors need to look for long-term value from prospective biotech investments.  Sources of risk in the biotechnology and pharma industry – even before the current environment – include:
  • Companies' acquisition by other companies
    Biotech is a fast-paced and dynamic world, and companies may join forces to work on a shared goal.  GlaxoSmithKline has acquired 21 companies over the past decade alone, according to Crunchbase. In an alternative scenario, two companies may race towards a cure, with one company inevitably losing out.

  • Drugs failing in clinical trials after seeming promising in the preclinical world
    While it may take ten years just for a drug to enter the clinical trials process from the laboratory, this protracted timeframe may not spell success.  In 2019, Merck's cancer immunotherapy Keytruda, one of the company's strongest drugs, failed in Phase 3 clinical trials for treatment of a specific type of liver cancer.  Also in 2019, Bristol Myers Squibb's Obdivo failed in a Phase 3 brain cancer trial.

    More on The PennZone
    • J&J Exterminating Reminds Residents to prepare for Termite Swarm Season
    • Registered Nurse Launches Healthcare Wealth Strategy Practice for Healthcare Professionals
    • Tyler G. Hicks' Encyclopedia of Wealth Building Secrets Released in a Powerful New Edition
    • Just 1 in 57 Crypto Owners Globally Pay Taxes on Their Holdings, New Report Finds
    • New Book Gives Technology Leaders the Blueprint to Drive Real, Lasting Impact

  • Adverse effects which cause drugs to promptly be pulled off the market
    In 2004, Merck recalled another blockbuster drug, the painkiller Vioxx, after patients began suffering heart attacks and strokes.
Investors Should Seek to Minimize Risk in Biotech by Avoiding COVID-19 Hype

A key aspect of investing in biotech has always been to minimize the inherent risk as much as possible.  This means looking at the company's foundation and whether they are an established leader in the field.  Instead of examining how companies are faring in the COVID-19 world, consider tried-and-true leaders in pharma and biotech, which are likely to play a major effort in COVID-19 due to their leadership in the space.

Opting for low-risk stocks which performed well before the economic downturn associated with the ongoing pandemic can help improve the success of your portfolio in the long term.  These companies include:
  • Johnson and Johnson (JNJ), a company with $82.8 billion in sales, which recently announced work on a COVID-19 vaccine and is listed at #34 in Forbes Global 2000 2020.

  • Abbott Labs (ABT), which recently unveiled 5-minute point-of-care testing for the novel coronavirus which can be used at pharmacies and doctor's offices.  Upon this news, the stock price rose nearly 50% from its low price of approximately $69 during the lowest point of the economic downturn to about $90 per share.

    More on The PennZone
    • IQSTEL accelerates toward profitability inflection with $317M revenue and AI-driven expansion; IQSTEL Inc. (N A S D A Q: IQST) i
    • AI-Driven Breakthrough Unleashed: Bionic Intelligence Platform Goes Live to Capture Massive Biotech Opportunity: KALA BIO, Inc. (N A S D A Q: KALA)
    • Surging Into Hyper-Growth Mode With Record Revenue, Raised 2026 Guidance, and Game-Changing AI Platform; Off The Hook YS (NYSE American: OTH)
    • Mom Creators Coalition Launches with WaterWipes® as Official Founding Sponsor
    • PandaGuarantee Launches Rent Guarantor Service in New York City

  • Gilead Sciences (GLD), a company listed at #186 in the Forbes Global 2000 2020, which recently experienced new popularity as its antiviral treatment, Remdesivir, obtained fast-track FDA approval as a treatment for COVID-19.

  • Pharma giant AstraZeneca (AZN) recently announced a landmark agreement with Oxford University towards making a COVID-19 vaccine a reality for millions around the world.
Other low-risk choices include Pfizer (PFE), GlaxoSmithKine (GSK), and Novartis (NVS).  These biotech and pharma companies have weathered many storms, and, regardless of their contributions to COVID-19, will likely continue to thrive due to their successes elsewhere in the industry.

The Bottom Line

Biotech investors should focus on long-term investing strategies with proven, big pharma companies.  They should avoid small, undercapitalized biotech companies that are simply chasing trends.

Source: Braeden Lichti

Show All News | Disclaimer | Report Violation

0 Comments
1000 characters max.

Latest on The PennZone
  • Homeowner Prep Announces Strategic Language Shift: Replacing "Renters" with "Future Homeowners" to Inspire Wealth-Building Mindsets
  • LiposoMore™ Redefines Bioavailability: Joyful Nutritional Launches High-Performance Liposomal Vitamin C and Iron for the Global Supplement Market
  • GDE Tree Services Expands Operations into Sydney, NSW
  • Tuckwell Machinery Expands CNC Range to Support Australian Cabinet Makers
  • The Inner Power of Emotional Self-Leadership
  • Dr. Nadene Rose Shares the Secret to True Success: Faith, Obedience, and Divine Purpose
  • Best Companies Group Opens Free Registration for Best Places to Work in Insurance Program
  • Understanding Unexpected Death: Why Independent Autopsies Matter in Cases Without Clear Cause
  • Epic Pictures Group Sets North American Release Date for the Thriller NO ORDINARY HEIST
  • Mobile Copywriter Celebrates 13 Years of Content Creation and SEO Services
  • Award-Winning REALTOR® Paige Coker Joins Corcoran DeRonja Real Estate
  • Over 98% of crypto owners globally don't declare taxes, new report find
  • Happreneurs™ Business Community Launches Pittsburgh, PA Chapter with Powerful Network of Founding Leaders
  • TicTac Group acquires French EdTech company Distrisoft
  • Rhys-Davies, Wright, Norris, Jacinto Highlight Latest Wave of FAN EXPO Philadelphia Celebrity Guests
  • Mark Dobosz Makes Donorassess.org Free To Every Nonprofit On The Planet
  • Genpak Announces Closure of Utah Manufacturing Facility
  • Newborn Care Network Introduces Clinical Standard to Bridge the Six-Week Postpartum Gap
  • The AAA Metamorphosis: How Global Gaming Is Redefining Production Standards
  • Monexplora Explains the Options Mechanics Behind March's Tech Selloff and VIX Surge

Popular on PennZone

  • Progressive Dental & The Closing Institute Partner with Zest Dental Solutions to Elevate Full-Arch Growth and Patient Outcomes
  • New Book Warring From the Standpoint of the Throne Room Calls Believers to Pray From Victory
  • Hope Survives Launches The Hope Collective, A Curated Publication Centering Lived Experience After Brain Injury
  • Conexwest: Shipping Containers Are Powering the Next Generation of Bitcoin Mining Infrastructure
  • Juego Studios Extends Full-Cycle Game Development & Outsourcing Capabilities to the UAE Market
  • Claude Riveloux Review 2026: How the $10B Fund Manager Dispels 'Scam' Rumors Through Education
  • Quadcode Acquires Significant Stake in Game 7, LLC - The Parent Company for FPFX Tech and PropAccount.com
  • Pure Energy Electrical Services, LLC Announces Strong Start to 2026, Reinforcing Customer-First Electrical Service Across Northeast Florida
  • Cancun Airport Transportation Expands Fleet Ahead of Record Passenger Growth at Cancun International Airport
  • Jack and Sage Acquires Sustainable Apparel Brand Kastlfel, Expanding Premium Logo Wear Across National Parks and Ski Resorts

Similar on PennZone

  • Just 1 in 57 Crypto Owners Globally Pay Taxes on Their Holdings, New Report Finds
  • IQSTEL accelerates toward profitability inflection with $317M revenue and AI-driven expansion; IQSTEL Inc. (N A S D A Q: IQST) i
  • AI-Driven Breakthrough Unleashed: Bionic Intelligence Platform Goes Live to Capture Massive Biotech Opportunity: KALA BIO, Inc. (N A S D A Q: KALA)
  • Surging Into Hyper-Growth Mode With Record Revenue, Raised 2026 Guidance, and Game-Changing AI Platform; Off The Hook YS (NYSE American: OTH)
  • NRx Pharmaceuticals Could Be on the Verge of a Breakout Year as AI, FDA Catalysts, and Mental Health Demand Converge
  • CCHR: Psychiatric Drugs Fuel Rising Death Toll: National Adverse Drug Event Awareness Day Confronts America's Medication Crisis
  • Explosive $10 Billion Counter-Drone Market with AI-Powered Defense Ecosystem: ZenaTech, Inc. (N A S D A Q: ZENA)
  • High-Value Execution Phase Begins: Bitcoin Bancorp Ignites Texas Rollout of Digital Asset ATM Network: Bitcoin Bancorp (Stock Symbol: BCBC) $BCBC
  • UK Financial Ltd Tokenized LTNS 1, A $1.1 T Asset-Backed ERC-3643 Security Token with 11 On-Chain Contracts Verifying, Compliant Real-World Value
  • Homeowner Prep Announces Strategic Language Shift: Replacing "Renters" with "Future Homeowners" to Inspire Wealth-Building Mindsets
Copyright © The PennZone | Theme: OMag by LilyTurf Themes
  • Contribute
  • Privacy Policy
  • Terms of Service
  • Contact Us