The coronavirus outbreak is causing many people to stay at home. And it's causing many investors to stay away from the stock market. But there are still some stocks that are performing well in the midst of the market mayhem resulting from the viral epidemic.
Three biotech stocks that appear to be coronavirus safe havens are Exelixis (NASDAQ:EXEL), Gilead Sciences (NASDAQ:GILD), and Vertex Pharmaceuticals (NASDAQ:VRTX). Here's why these stocks have been able to swim against the current and are still smart picks for investors to buy now.
Image source: Getty Images.
The best way to overcome bad news in the market is to deliver good news of your own. That's exactly what Exelixis has done in recent weeks.
On Feb. 11, Exelixis announced positive results from a phase 1b clinical study evaluating Cabometyx and Roche'sTecentriq in treatingmetastatic castration-resistant prostate cancer. The biotech followed up a few weeks later with solid Q4 results fueled by continued success for Cabometyx.
Regardless of how many people are infected with the coronavirus disease COVID-19, Exelixis should continue its momentum. Cancer patients will need the biotech's drugs at least as much in the future as they do now -- and probably even more.
There's a realistic chance that Exelixis can pick up as many as four additional indications for Cabometyx by the end of 2021. The company also plans to bolster its pipeline through business development deals.
Gilead Sciences is one of a handful of biotech stocks that have actually benefited from the coronavirus threat. The company's experimental antiviral drug remdesivir is viewed as a leading candidate for treating COVID-19. But Gilead's coronavirus program isn't the main reason to like the stock.
The company dominates the global HIV market. Gilead's Biktarvy is the most powerful HIV drug to reach the market yet and raked in $4.7 billion last year.An even bigger winner could be on the way. Gilead is evaluating long-acting capsid inhibitor GS-6207 in early stage clinical studies.RBC Capital Markets analyst Brian Abrahams thinks the HIV drug could be a transformative catalyst for Gilead in the future.
In the meantime, Gilead should have another major catalyst coming up. The biotech hopes to win regulatory approval for filgotinib in treating rheumatoid arthritis later this year. Gilead is also evaluating the drug in clinical studies targeting other indications, including Crohn's disease, psoriatic arthritis, and ulcerative colitis. Analysts project that filgotinib could generate peak annual sales of as much as $6 billion.
Gilead is also a leader in cancer cell therapy with Yescarta. The company is expanding its oncology presence as well with plans to acquire cancer-focused biotech Forty Seven for $4.9 billion.
On top of all of this, Gilead offers a mouth-watering dividend that currently yields 3.9%. Gilead has increased its dividend payout by 58% since 2015.
Vertex canceled its presentation at the Cowen Health Care Conference scheduled for March 3 due to its companywide restriction on travel due to the coronavirus threat. Aside from this cancellation, though, the biotech has rocked along unphased by the epidemic.
Like the other biotechs on our list, Vertex doesn't have to worry about any impact from the current coronavirus outbreak on the sales of its products. Vertex claims the only approved drugs on the market for treating the underlying cause of cystic fibrosis (CF).
The company's position in the CF market is getting even stronger. Vertex recently won FDA approval for its triple-drug combo Trikafta and hopes to secure European approval for the drug this year. Trikafta holds the opportunity to expand the addressable patient population for Vertex's CF drugs by more than 50%.
Vertex is also moving beyond CF. It's working with CRISPR Therapeuticsto develop gene-editing therapies for rare blood disorders beta-thalassemia and sickle cell disease. The company is evaluating several other drugs in early stage clinical studies targeting other rare genetic diseases. And Vertex is really swinging for the fence by attempting to develop a potential cure for type 1 diabetes.
All biotech stocks face risks. Exelixis, Gilead, and Vertex could fail to win key regulatory approvals. Any of the companies could experience pipeline setbacks. But while many businesses could be negatively impacted by the coronavirus outbreak, you can rest assured that patients will keep on taking the products made by Exelixis, Gilead, and Vertex and physicians will keep on prescribing them.
Read the original post:
3 Biotech Stocks That Are Coronavirus Safe Havens - Motley Fool
- GW Pharma Reports Preliminary Topline Results Of Ulcerative Colitis Trial - October 15th, 2014 [October 15th, 2014]
- Ulcerative Colitis: Facts on Symptoms, Treatment and Diet - October 15th, 2014 [October 15th, 2014]
- Ulcerative Colitis - National Digestive Diseases ... - October 15th, 2014 [October 15th, 2014]
- CCFA: What is Ulcerative Colitis | Inflammatory Bowel Disease - October 15th, 2014 [October 15th, 2014]
- Ulcerative Colitis: Get Facts on Symptoms and Diet - October 15th, 2014 [October 15th, 2014]
- Ulcerative colitis - Wikipedia, the free encyclopedia - October 15th, 2014 [October 15th, 2014]
- Ulcerative Colitis Testimonial - Video - October 15th, 2014 [October 15th, 2014]
- My Fight With Ulcerative Colitis - Video - October 15th, 2014 [October 15th, 2014]
- Diet in Ulcerative Colitis - Best and Worst Foods - Video - October 15th, 2014 [October 15th, 2014]
- Why Ulcerative Colitis is (Literally) a Pain in the Butt - Video - October 15th, 2014 [October 15th, 2014]
- My Journey= Ulcerative Colitis Proctitis PART 1 - Video - October 15th, 2014 [October 15th, 2014]
- Top 15 Ways to Cure Ulcerative Colitis Naturally - Diet & Home Remedies - Video - October 15th, 2014 [October 15th, 2014]
- Updates in Ulcerative Colitis & Crohn's disease - October 17th, 2014 [October 17th, 2014]
- Ulcerative colitis Symptoms - Diseases and Conditions ... - October 17th, 2014 [October 17th, 2014]
- Dr. Morse Explains Ulcerative Colitis and Intestinal Conditions - Video - October 20th, 2014 [October 20th, 2014]
- Depression Stress Anxiety IBS Colitis Arthritis Treatment Allergy Testing Reiki Healing Scotland W - Video - October 20th, 2014 [October 20th, 2014]
- Taylor Healing process - Video - October 20th, 2014 [October 20th, 2014]
- Treating Pediatric Inflammatory Bowel Disease - Video - October 20th, 2014 [October 20th, 2014]
- Take Steps Walk for Crohn's and Colitis - Video - October 21st, 2014 [October 21st, 2014]
- Ulcerative Colitis & Me - Video - October 21st, 2014 [October 21st, 2014]
- Ferring Pharmaceuticals: CORTIMENT MMX, a new treatment for ulcerative colitis, receives European approval - October 22nd, 2014 [October 22nd, 2014]
- Sleep duration affects risk for ulcerative colitis - October 22nd, 2014 [October 22nd, 2014]
- My Journey= Ulcerative Colitis Proctitis PART#3 - Video - October 23rd, 2014 [October 23rd, 2014]
- Added benefit of vedolizumab is not proven - October 24th, 2014 [October 24th, 2014]
- My Journey= Ulcerative Colitis Proctitis PART#2 - Video - October 24th, 2014 [October 24th, 2014]
- Why Food Network Star Sunny Anderson Can't Eat Vegetables - October 24th, 2014 [October 24th, 2014]
- New compounds reduce debilitating inflammation - October 26th, 2014 [October 26th, 2014]
- Sleep Duration Linked to Ulcerative Colitis Risk in Study - October 27th, 2014 [October 27th, 2014]
- Ulcerative colitis: MedlinePlus Medical Encyclopedia - October 27th, 2014 [October 27th, 2014]
- Ulcerative Colitis - American Society of Colon and Rectal ... - October 27th, 2014 [October 27th, 2014]
- NHS Ulcerative Colitis - NHS Choices - Your health, your ... - October 27th, 2014 [October 27th, 2014]
- Ulcerative Colitis - October 27th, 2014 [October 27th, 2014]
- How to heal intestines | Ulcerative Colitis | SCD Lifestyle - Video - October 27th, 2014 [October 27th, 2014]
- Ulcerative Colitis - Causes, Symptoms, Diet & Herbal Remedies in Punjabi - Video - October 27th, 2014 [October 27th, 2014]
- Receptos: good results for ulcerative colitis drug - October 29th, 2014 [October 29th, 2014]
- Should I Drink Alcohol if I Have Crohn's Disease or Ulcerative Colitis - Video - October 29th, 2014 [October 29th, 2014]
- New clinical trial data: Multiple sclerosis drug candidate also shows promise for ulcerative colitis - October 30th, 2014 [October 30th, 2014]
- TSRI's MS Drug Also Shows Promise In Ulcerative Colitis - November 1st, 2014 [November 1st, 2014]
- Justin Mirigliani repping 260lbs on the Bench! Never Surrender! Fighting Ulcerative Colitis! - Video - November 1st, 2014 [November 1st, 2014]
- Managing Ulcerative Colitis Naturally: Outlook & Perspective - Video - November 1st, 2014 [November 1st, 2014]
- My Ulcerative Colitis Diet - Video - November 1st, 2014 [November 1st, 2014]
- Healing my Ulcerative Colitis - Video - November 2nd, 2014 [November 2nd, 2014]
- Peoria Connections Interview - Successes with autoimmune disease, ADHD, ulcerative colitis - Video - November 2nd, 2014 [November 2nd, 2014]
- Crohns Disease & Ulcerative Colitis The Diagnosing Difficulties - Video - November 2nd, 2014 [November 2nd, 2014]
- My Ulcerative Colitis Story - Video - November 3rd, 2014 [November 3rd, 2014]
- Pudge Rodriguez will be special guest at Crohns and Colitis Foundation dinner - November 4th, 2014 [November 4th, 2014]
- Diagnosing Crohns Disease & Ulcerative Colitis - Video - November 4th, 2014 [November 4th, 2014]
- Natural Treatment for Ulcerative Colitis with Causes and Symptoms - Video - November 5th, 2014 [November 5th, 2014]
- Acute Severe Ulcerative Colitis - Video - November 5th, 2014 [November 5th, 2014]
- CME Outfitters and USF Health to Host Medical Symposium in Conjunction with the 2014 Advances in IBD Crohns & Colitis ... - November 7th, 2014 [November 7th, 2014]
- How sleep affects my Ulcerative Colitis Symptoms - Video - November 7th, 2014 [November 7th, 2014]
- Healing my Ulcerative Colitis Webcam video from November 4, 2014 05:49 PM - Video - November 7th, 2014 [November 7th, 2014]
- Managing Extra-Intestinal Manifestations of Crohn's Disease & Ulcerative Colitis - Video - November 7th, 2014 [November 7th, 2014]
- Causes and Treatment of Crohns Disease and Ulcerative Colitis - Video - November 8th, 2014 [November 8th, 2014]
- How to stop the Cause of IBS, Crohn's and Ulcerative Colitis - Video - November 8th, 2014 [November 8th, 2014]
- Introduction to Ulcerative Colitis - Video - November 8th, 2014 [November 8th, 2014]
- Ulcerative Colitis Dr Tehsina0 - Video - November 8th, 2014 [November 8th, 2014]
- Taking Steps Against Crohn's and Colitis - November 9th, 2014 [November 9th, 2014]
- How To Make Chicken 3 Ways + Gut Healing Bone Broth - by Thyroid Loving Care - Video - November 10th, 2014 [November 10th, 2014]
- Ileal Pouch - Anal Anastomosis in Chronic Ulcerative Colitis - Video - November 10th, 2014 [November 10th, 2014]
- Vlog #1 - November 10 2014 - Video - November 11th, 2014 [November 11th, 2014]
- Ulcerative Colitis Patient Success Story - Video - November 11th, 2014 [November 11th, 2014]
- How to Recover from Ulcerative Colitis - Video - November 12th, 2014 [November 12th, 2014]
- Vlog #2 - November 11, 2014 - Living with Ulcerative Colitis - Video - November 13th, 2014 [November 13th, 2014]
- How IBD (Crohn's Disease and Ulcerative Colitis) Affects Mental Health - Video - November 15th, 2014 [November 15th, 2014]
- Ulcerative Colitis Got Me Down - Video - November 15th, 2014 [November 15th, 2014]
- Surgeon Spotlight: Dr. Amit Merchea - Chronic Ulcerative Colitis - Video - November 16th, 2014 [November 16th, 2014]
- Ulcerative Colitis Proctitis: Doctor Update, Medications - Video - November 16th, 2014 [November 16th, 2014]
- Ulcerative Colitis Got You Down Too? - Video - November 16th, 2014 [November 16th, 2014]
- Management of ulcerative colitis - Wikipedia, the free ... - November 17th, 2014 [November 17th, 2014]
- IBD Support Group: Crohn's Disease and Ulcerative Colitis - November 17th, 2014 [November 17th, 2014]
- Crohn's Disease, Ulcerative Colitis and the Team Challenge endurance training program - Video - November 17th, 2014 [November 17th, 2014]
- Let's CRUSH Ulcerative Colitis LIke a Coke Can - Video - November 19th, 2014 [November 19th, 2014]
- 21 Weeks Pregnant Update! - Ultrasound & Ulcerative Colitis - Video - November 20th, 2014 [November 20th, 2014]
- Healing my Ulcerative Colitis Webcam video from November 17, 2014 02:48 PM - Video - November 20th, 2014 [November 20th, 2014]
- Is Crohns Disease or Ulcerative Colitis Hereditary? - Video - November 22nd, 2014 [November 22nd, 2014]
- Celebrity chef Sunny Anderson on living with irritable bowel disease - November 23rd, 2014 [November 23rd, 2014]
- 13 Years with Ulcerative Colitis - Video - November 26th, 2014 [November 26th, 2014]
- Mark: Healed of Ulcerative Colitis - Video - November 26th, 2014 [November 26th, 2014]
- Colonoscopy of Ulcerative Colitis - Video - November 30th, 2014 [November 30th, 2014]