It's tough to discount the bullish case for biotech and pharmaceutical stocks.
For one, millions of retiring baby boomers not only exploring new ways to stave off signs of aging, they are looking to postpone health-related decline and even death.
In addition, we're seeing countless mergers and acquisitions. We're also seeing new, innovative treatments for a myriad of issues. And if you're in the right place at the right time, the windfall profits are endless.
Because -- let’s face it -- making money from this solid, unbreakable sector couldn't be any easier. Especially if you can uncover unfairly beaten down biotech stocks.
Plus, with aside from the usual catalysts, including 80 million retiring baby boomers, newly insured Americans, explosive mergers and acquisitions, heavy demand, and exciting new innovation, biotech stocks are some of the most exciting trades on market -- not to mention recession-proof. After all, people will always require medical attention.
Healthcare related stocks are some of the most recession-proof investments around.
We can’t stop people from getting sick, or from aging. Plus, aging baby boomers are a substantial catalyst. Since the very first baby boomer filed for social security benefits on October 15, 2017, 80 million more were in line to do the same through 2027.
By 2030, all baby boomers will be older than 65, according to the U.S. Census Bureau.
Five years after that, the number of people aged 65 and up will outnumber those under 18.
It’s no surprise that investments in healthcare has risen dramatically in the last five years. All of that has made healthcare virtually recession proof.
Knowing that, we went hunting for exciting biotech stocks – especially those with upcoming catalysts. Here’s what we found.
Axsome Therapeutics Inc. (NASDAQ:AXSM) is a clinical stage biopharmaceutical company that is developing novel therapies for central nervous system (CNS) disorders. Its product candidate portfolio includes AXS-05, AXS-09, AXS-02, AXS-07, and AXS-06. AXS-05 is in the Phase III clinical trial in treatment resistant depression and in agitation associated with Alzheimer's disease, as well as in the Phase II clinical trial for smoking cessation. AXS-02 is also in the Phase III clinical trial in knee osteoarthritis associated with bone marrow lesions pursuant to a special protocol assessment and in chronic low back pain associated with Modic changes. AXS-07 is in Phase I clinical trial for the acute treatment of migraine. AXS-06 is also in Phase I clinical trial for the treatment of osteoarthritis and rheumatoid arthritis and for the reduction of the risk of nonsteroidal anti-inflammatory drug associated gastric ulcers. AXS-09 is a novel, oral medicine combination of esbupropion and dextromethorphan.
We’ve mentioned AXSM before. The first time was back in January 2019 at $8.01 a share. At the moment, the stock is up to $28.77, where we’re recommending it again with a big catalyst nearing. The company expects to announce topline results from three Phase III clinical trials, and one Phase II trial before the end of the year. If we hear sizable, solid news, it could easily force the stock higher.
Nektar Therapeutics (NASDAQ:NKTR) a research-based biopharmaceutical company, discovers and develops drug candidates for cancer, auto-immune disease, and chronic pain in the United States. The company develops NKTR-181, an orally-available mu-opioid analgesic molecule, which is in Phase III clinical trial for moderate to severe chronic pain; ONZEALD, a topoisomerase I inhibitor that is in Phase III clinical trial for advanced metastatic breast cancer in patients with brain metastases; and NKTR-214, a CD122-preferential interleukin-2 (IL-2) pathway agonist, which is in Phase I to treat immuno-oncology. It also develops NKTR-358, cytokine Treg stimulant, which is in Phase I to treat autoimmune diseases; NKTR-262, a toll-like receptor agonist that is in Phase I for solid tumors; and NKTR-255.
Over the last few months, the stock gapped lower on losses in each of the last four quarters. However, insiders seem to be bullish on the future of the company. For example, senior VP and Chief Scientific Officer, Stephen Dobersten bought 15,000 shares for $260,000. Even most firms believe the stock is undervalued, with an average price target of $39.45 a share from a current price of $20 a share.