5 Gene Therapy Stocks To Enrich Your Portfolio
Zacks Investment Research | Feb 25, 2019 08:54PM ET
The next big thing in the biotech space is shaping up to be gene-replacement therapy to treat an array of diseases, including inherited bugs. It is one of the safest and effective ways to treat specific disease causing genes, and it is either done directly in the human body or by extracting cells, engineering them in the lab, and then injecting back into the patient.
Shares of gene-therapy companies are rising even more now after Roche Holding (SIX:ROG) AG (OTC:RHHBY) announced plans to acquire Spark Therapeutics, Inc. (NASDAQ:ONCE) for $4.8 billion. Roche acquired the gene therapy pioneer for a 122% premium, which is about to introduce a treatment for a rare eye disease in the market. Lest we forget, Spark Therapeutics’ drug Luxterna was approved way back in 2017 to treat inherited retinal diseases that lead to blindness. By the way, Spark Therapeutics’ major drug SPK-8011 is a factor VIII gene transfer treatment for inherited blood disorder hemophilia A.
Meanwhile, Roche is expected to acquire all outstanding shares of Spark Therapeutics’common stock, while the latter will recommend its board to allow its shareholders tender their shares to Roche. The acquisition of Spark Therapeutics shows that established big pharma companies are interested in making huge investments in genetic cures and treatments. And it is widely believed that the deal has paved the way for more merger and acquisitions in the space.
Analysts at Janney Montgomery Scott rightly pointed out that the deal will not only have an encouraging impact on investor sentiment toward gene therapy names, but also on the broader medical industry. In fact, they added that “given advancements in manufacturing, de-risking on dosing safety and efficacy, fast development times for rare disease, and favorable regulatory environment, the space is appealing and differentiated as a growth investment.”
That’s why we are bringing you the best gene therapy stocks that have not only soared on the deal news but are also poised to make the most of the next gene revolution.
Solid Biosciences
Solid Biosciences Inc.’s (NASDAQ:SLDB) lead product candidate includes SGT-001, a gene therapy that is in Phase I/II clinical trials to restore functional dystrophin protein expression in patients’ muscles. The company currently flaunts a Zacks Rank #2 (Buy). You can see Zacks Investment Research
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