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.
Ionis pharmaceutical ($IONS) is a commercial stage biotech company seeking to apply recent advances in RNA technology to the worlds of neurology and cardiology. Although the company is not yet profitable, revenue grew by 40% in the latest quarterly report, and Ionis has 9 different stage III studies in it’s pipeline. The company boasts marquee pharmaceutical partners such as GSK, Astra Zeneca and Novartis. A recent deal with Roche to develop novel RNA therapies for Alzheimer’s and Huntington’s Disease brims with promise. With more than $2 billion in cash, IONIS is well positioned to ride out the current dryspell facing the whole biotech market. Strong funding, a blossoming pipeline, and a stable of prestigious partners should make IONIS appealing to any biotech investor.