The stock markets worked well in January, as they often do, but as dust is installed on this race at the start of the year, the strategy for long -term investors remains the same: investing in companies that can work Of course for long periods, whether or not they have moved to tandem with the market in January. One month of strong (or poor) yields does not mean in the big scheme of things.
To illustrate this point, let’s discuss two actions in the biotechnology industry that have evolved in opposite directions so far this year: Green Pharmaceuticals (Nasdaq: VRTX) And Modern (Nasdaq: mRNA). This is why these two companies could both produce disproportionate yields to patient investors.
Vertex Pharmaceuticals begins the year. On January 30, the company announcement That the US Food and Drug Administration had approved daily, the first inhibitor of the non -opioid oral pain signal to obtain the green light from the regulators. The actions of Vertex jumped to the news and for reason. Given the devastation that opioids have caused in many communities in the United States, a pain treatment which avoids the potential side effects of opioids meets a significant need.
In addition, Vertex now has approved drugs through pain, sickle cell anemia (SCD), transfusion beta-thalassia (TDT) and, of course, cystic fibrosis (CF), its field of central expertise. Vertex always generates most of its income from its CF franchise and still offers excellent financial results. In the third quarter, the company’s revenues increased by 12% from one year to the next to reach $ 2.77 billion.
Over the next two years, sales of new Vertex drugs, notably Journavx, its new generation CF therapy Alyftrek and Casgevy, which deals with SCD and TDT, should significantly increase and help improve its growth in already strong sales. In addition, the summit will probably also make many clinical progress. Pipeline at a late stage of the company includes inactapin, potential therapy for renal disease mediated by Apol-1 and Povetacicept, student therapy for IGA nephropathy (a chronic kidney disease).
There are no approved treatments that target the underlying causes of these two conditions. Vertex Pharmaceuticals has more candidates in studies at an early stage. There is still a lot at the front for Vertex Pharmaceuticals, which makes it a top Biotechnology stock Buy this month and keep for a while.
Modern is a victim of its own success. Biotechnology was quite unknown in 2019, but took importance in 2020 when it managed to develop a vaccine for COVID-19, a project in which most other companies of all size failed. Moderna made a fortune thanks to this achievement, but its financial results and the course of action have evolved in the wrong direction for most of three years while the pandemic withdrew. However, there are good reasons to expect the company to make solid long -term yields.
