Buying biotech stock can result in both big losses and huge gains down the line, making the investment high risk but potentially very profitable. With the current wave of innovation happening, the long term outlook of this sector look bright, with some companies a better investment option than others.
With a focus on developing pioneering products to be applied in the prevention and treatment of serious infectious diseases, Biota Pharmaceuticals has remained stagnant over the past few years. The main reason is due to the absence of readouts for its late-stage product trials, something that is about to change for the next year as the company will make available readouts for phase 2 of its 3 clinical programs. In addition, the $66.3 million reported in cash and equivalents for third quarter make this company a good option for investors.
Roka Bioscience is developing highly precise instrument systems and molecular assays specifically for the food safety industry in order to help food producers reduce risks, safeguard their brands, and pass the ever-growing testing requirements. While the stock was recommended as small-cap turnaround opportunity by some analysts midyear, this was followed by two bad quarters which has resulted in a drop in value of nearly 35 percent. Despite this, the shares are held by strong institutional investors who own the majority of the stock and with safety of food playing an ever increasing role in everyday life, there is still potential that this stock can recover and even grow further.
A company for in vitro diagnostics which is developing and commercializing its own diagnostic multi-biomarker test, Venaxis is the new name at the top of the list of hot Biotech’s. The stock has been lagging a bit after its midyear surge of around 50 percent, but with the progress report on its main products due, it is likely the stock will start rising again soon.