Biotech is one of the most volatile sectors in the stock market, and as such, it can be very rewarding for those who follow it closely. Biotech stock prices can soar or crash in a single session, due in part to dependence on clinical trial outcomes. Here we examine a diverse group of five biotech stocks in an effort to gauge the upside potential for investors.
Vertex Pharmaceuticals Inc. (VRTX): This stock is trading around $38, landing it in the lowest third of its 52 week trading range of $32.08 to $58.87. VRTX announced its first profitable quarter just last week. The market capitalization for VRTX is $7.88 billion. This article highlights the company’s recent success in beating Merck & Company Inc. (MRK) in the hepatitis C market. All is not won however; this article is quick to note that Pharmasset, Inc. (VRUS) is beginning Stage III trials of its oral hepatitis C therapy, putting VRUS within striking range with the first all-oral treatment. Although the price of VRTX has fallen below its 200 day moving average of $48.65, with total debt/equity reserves of over $110 million, VRTX has likely not thrown its last punch in this competitive market. VRTX is a fast moving stock and one that has potential to reward the studied investor.
Ariad Pharmaceuticals Inc. (ARIA): The stock is trading around $12. ARIA is trading well against its 52 week range of $3.51 to $13.50. The stock has been on a tear for much of the past year, rising over 200% in the past 52 weeks.To continue reading, click here