3 Big Biotechs Hold Growth Potential In Second Half Of 2019

The biotech sector has had a pleasant bull run in the first half of 2019 and so far after a dismal period of two years. The NASDAQ Biotechnology has seen growth of 11.5% year to date.

The biotech sector has always persisted to be riskier than the more stable .

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is focused on the discovery, development and commercialization of small molecule drugs targeting serious diseases. Vertex’ key area of focus is cystic fibrosis (CF) and has a market leading portfolio of the same. The company’s lead marketed products are Symdeko/Symkevi (tezacaftor in combination with ivacaftor), Orkambi (lumacaftor in combination with ivacaftor) and Kalydeco (ivacaftor). Consistent positive regulatory approvals led to an increase in the eligible patient population for these drugs. The CF market represents a huge commercial potential and Vertex has been striving hard to further cement its pipeline. The company’s CF pipeline is quite strong. It evaluated two next-generation CFTR correctors (VX-659 and VX-445) in phase III studies as part of a triple combination with tezacaftor and ivacaftor. It chose VX-445 triple combination regimen for regulatory submissions in 2019. If the triple-combo regimen is approved, Vertex can address a significantly wider CF patient population, accounting for almost 90% of subjects with CF in the future.

Meanwhile, the company is also developing treatments for sickle cell disease, thalassemia and pain management.

Vertex currently carries a Zacks Rank of 2.

Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) is a biopharmaceutical company, focused on the development and commercialization of life-transforming drugs, for the treatment of patients with ultra-rare disorders. Alexion's blockbuster drug, Soliris (approved for paroxysmal nocturnal hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS), continues to perform well. The drug’s label expansion for the generalized myasthenia gravis indication boosted sales significantly. The FDA recently approved Alexion’s long-acting C5 complement inhibitor, Ultomiris, for the treatment of adults with PNH, which consolidated its PNH franchise. The initial uptake of the drug raises optimism. The company is working to expand Ultomiris’ label. It submitted an application in the United States for the approval of the same to treat patients with aHUS. The company also initiated a phase III study on the drug for generalized myasthenia gravis (gMG) and plans to initiate another phase III program on the same for the neuromyelitis optica spectrum disorder (NMOSD).

In addition, Alexion has been quite active on the acquisition front in a bid to widen its portfolio and reduce dependence on Soliris. The company acquired Wilson Therapeutics and Syntimmune in 2018 to fortify and diversify its pipeline.

Get The News You Want

Read market moving news with a personalized feed of stocks you care about.

Get The App

Alexion currently carries a Zacks Rank #3 (Hold).

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

Zacks Investment Research

Written By: Zacks Investment Research