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  • The Three Top Healthcare Stocks to Buy in 2021

    The Three Top Healthcare Stocks to Buy in 2021

    The healthcare sector is a massive industry with a wide potential for investors.

    Healthcare is a basic necessity for people all over the world. Each year, we see new types of mysterious diseases that are often deadly. Such as the coronavirus is one of the broad examples of it. The global pandemic has caused more than 2.3 million deaths, and almost 107 million are facing the virus.

    Despite the health concerns, many of the health stocks made big gains. However, healthcare stocks as a whole underperformed the broader market, rising 11% compared to S&P 500 rose 15.9%. Still, the sentiment regarding healthcare stocks is high with the public health concerns. The vaccine is still in a frantic zone and many companies are still researching for more improvement.

    In that premise, healthcare is a big market and has massive potential. So, let’s have a look at the three top healthcare stocks to buy this year.

    Medtronic (MDT)

    Medtronic (MDT) is an American Irish-domiciled medical device corporation. The company generates most of its sales and profits from the US healthcare market. The healthcare firm with nearly $159 billion market value is a compelling stock for investors. Medtronic is among healthcare firms with safe, stable, and longer-term growth potential.

    Talking about Medtronic’s stability, the company is an exclusive member of the S&P dividend aristocrats list. This means that MDT is those dividend stocks that have raised their dividend payments for a consecutive 25 years long period or more. While MDT has an undisputed streak of over 43 years. 

    Medtronic has shown interest in investing in Compute Health Acquisition Corp., a blank-check company that is expected to go public—with an IPO of $750 million. The company has plans to buy almost 1.5 million units in the offering.

    Compute Health has plans to invest in the healthcare sector through the rising computing power and AI technology. This biotech healthcare is set to change the dynamics of the healthcare industry. So, Medtronic’s potential investment could be an effective one in the long-term.

    Vertex Pharmaceuticals (VRTX)

    Vertex Pharmaceuticals (VRTX) is one of the leading in the healthcare industry. The company’s primary focus remains on the development of drugs that treat the basic cause of cystic fibrosis (CF). CF is a rare genetic disease that causes lung problems and damages other organs, as well.

    The company’s most prominent drug, a 3-in-1 pill – Trikafta that obtain approval back in 2019, generated over $3.9 billion in sales for the very first year in 2020. Trikafta is anticipated to drive the company’s revenue for the next few years.

    Furthermore, Vertex’s management has indicated acquiring more assets to diversify its portfolio and accelerate its pipeline. VRTX shares are down and are expected to have an upward movement anytime soon. So, it’s one of the stocks to buy with potential upside.

    McKesson Corp. (MCK)

    McKesson Corp. (MCK) is a pharmaceutical and other healthcare products supplier and distributor. McKesson is more of a logistics firm, still, its involvement in the healthcare sector makes it a promising healthcare firm.

    The company recently reported third-quarter FY21 results which came on top with the rise in distribution services. The adjusted gross profit soared over 7% year-over-year, which was mostly driven by an incline in the distribution of COVID-19 tests. Moreover, McKesson’s work assembling ancillary supply kits for COVID-19 vaccines also played a key role in profit growth.

    The company distributed over 25 million vaccine doses of Moderna’s COVID-19 vaccine in January. The pharmaceutical distributor expects more contracts to be signed with the U.S. government for the distribution of more vaccines.   

    With this, the company has upgraded its full-year 2020 outlook and anticipates the adjusted earnings between $16.95 and $17.25 per share. So, McKesson Corp. (MCK) seems a suitable investment option with potential growth opportunity this year.

  • 3 of the Best Biotech Stocks to Buy for 2021

    3 of the Best Biotech Stocks to Buy for 2021

    Due to the spread of the coronavirus pandemic all over the world Biotech stocks have gained great attention in the market. There is great competition between biotech giants, and this makes investors confuse to predict which stock will be more fruitful for them in terms of revenue. But one should not ignore the fact that other diseases and medical challenges still exist even if they are not like that much popular as the COVID-19 is.

    Moderna Inc (NASDAQ: MRNA)

    Moderna, Inc. (MRNA) is a leading mRNA Technology platform that aims on using messenger RNA (mRNA) to produce a new generation of transformative drugs for patients.

    2020 proved to be a good year for Moderna because its share price has reached up to the mark of more than 500%.Covid-19 mRNA-1273 is mainly responsible for this rise as this vaccine has shown very effective results. Further this vaccine has gained the trust of about 30 countries’ regulatory bodies as they have approved it for use.

    According to MichaelYee, a Wall Street analyst, Moderna has already signed $11.7B in contracts in which dose range is from 510M to 525M. The company is looking forward to signing additional contracts for 2021 and 2022 where the capacity will reach up to 1.2B doses.

    Moderna has to compete with its competitors especially Pfizer and JNJ(which is going to share results 3rd trial phase of Covid-19 Vaccine shortly) to maintain its reputation but due to the very high demand for vaccine in the globe, at least five companies can sell at full capacity to fulfill the need of vaccine in the globe. Moderna has also stepped in the 2nd phase study of the age group from 12 to 17 and U.S. Food and Drug may authorize vaccine for teens which could add more value to Moderna’sannual revenue.

    Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX)

    Vertex Pharmaceutics Inc.(VRTX) is focused on discovering, developing & manufacturing small molecule drugs for the cure of cystic fibrosis, viral infections, bacterial infections, autoimmune diseases, cancer, and neurological disorders.

    The company is playing the lead role in the cure of cystic fibrosis as it is estimated that 50% of patients diagnosed with cystic fibrosis in many countries are using Vertex’s medications. Vertex’s main product is Trikafta which is approved by the FDA at the end of 2019. Trikafta has already generated $3b revenue alone and is expected to generate more in the future as the company is putting serious effort to get the approval of this product for different age groups.

    Novavax, Inc. (NASDAQ: NVAX)

    Novavax, Inc. (NVAX) is a late-stage company that aims in improved global health through the discovery, development, and commercialization of innovative vaccines to prevent infectious disease. The company’s main contributions in preventing diseases include COVID-19, seasonal influenza, RSV, Ebola, Mers, and SARS.

    The company has recently announced that it has contracted with the Government of Canada to supply 76Million doses of NVX-CoV2373, a company’s recombinant protein-based COVID-19 vaccine, to control the pandemic in the region. This contract will help the company to generate a handsome revenue in future.

    Besides the COVID-19 vaccine, the company is putting some serious effort into Nanoflu, a seasonal influenza vaccine for the olders, to influence the global influenza market which will worth more than 6Billion annually by 2026. The 3rd clinical analysis of the Nanoflu showed exceptional results and now the company is expecting to get approval from the U.S food and drug administration soon to commercialize its product and if it happens, it will further boost the company’s reputation and maximize the potential to generate billions of dollars revenue annually.