Our favorite biotech shares and healthcare investments in today’s stock market. Highlighting companies that stand to profit through medical innovation, mismatches in share price to market potential, or just plain great economics. (Stocks may be owned by the Sick Economist, or other commentators on this page.)
Vertex Pharmaceuticals is an example of a young biopharma company with big ambitions. The cash flow positive firm has made its name with breakthrough medicines in the field of Cystic Fibrosis, and is now close to broadening its commercial offerings into blood diseases, kidney disease, and pain management. If you wonder what Eli Lilly looked like 100 years ago, before it was a giant, this could be it.
This cashflow positive business aims to accelerate the drug discovery process by offering biosimulation services to major pharmaceutical firms such as Eli Lilly, Merck, Pfizer. Certera offers software and services that allow researches to more accurately model the effects of a new drug on the human body. Certera’s revenue has grown for five years in a row, and management believes that they have barely begun to scratch the surface of what can be achieved through biosimulation.
Morphic Holding, Inc, is pioneering therapies that focus on integrins, a category of proteins that play a role in many chronic diseases of the autoimmune, cardiovascular and metabolic systems. The small biotech has recently expanded on a partnership with a Pharma Giant (ABBV). AbbVie has chosen to exercise a license option to develop Morphic’s αvβ6 integrin inhibitors for the treatment of fibrotic diseases including idiopathic pulmonary fibrosis (IPF) and additional indications. We’ll be keeping a close eye on MORF over the coming months and years. If all goes well, MORF has a massive potential upside.