There are several alternative options for those looking to invest in the biotechnology sector but without splashing out on individual stocks. Exchange-traded funds (ETFs) and mutual funds that offer exposure to the biotech sector are good places to start. These types of investment vehicles have proven highly successful for investors over time. They allow you to spread your risk over multiple holdings while also having the opportunity to reinvest at favorable prices if any position you hold declines in value. There are plenty of other advantages too. Let’s look at why investing in an ETF or mutual fund might be an excellent idea for anyone interested in gaining exposure to the biotechnology sector.
CRISPR Therapeutics AG (CRSP)
CRISPR Therapeutics AG is a leading gene editing biotech company. The company is developing next-generation gene therapies for serious diseases such as sickle cell disease, beta-thalassemia, and hemoglobinopathies. CRISPR aims to treat diseases using gene editing. A patient’s cells are edited outside the body and then re-injected into the body, where they’re expected to produce a lasting therapeutic effect. The company’s lead product candidate is CTX001, which is in Phase II clinical trials to treat sickle cell disease. CRISPR’s current valuation appears to be in line with that of other stocks in the biotechnology sector. It’s expected to grow at a rate of 40% over the next five years, according to analysts.
Ascendis Pharma (ASND)
Ascendis Pharma is a biopharmaceutical company that develops therapies for treating fibrosis and inflammation. Its product candidates include ATX-101, which is a topical small molecule inhibitor that is currently used to treat dermatological conditions such as psoriasis. The product candidate is in Phase III clinical trials for treating moderate to severe psoriasis. The company also has ATX-103, a small molecule inhibitor, in Phase II clinical trials for the treatment of nonalcoholic steatohepatitis (NASH). NASH is a liver disease characterized by inflammation, fat deposits in the liver, and eventual damage to the liver. ATX-103 is intended to treat both early and advanced stages of the disease. Ascendis Pharma’s top-line growth rate of 77% is expected to continue over the next five years.
Regeneron Pharmaceuticals (REGN)
Regeneron Pharmaceuticals is a biotechnology company that develops therapies for eye diseases and other severe medical conditions. The company’s lead product candidates include EZH2 Inhibitor (REGN2810), which is in Phase III clinical trials for the treatment of non-small cell lung cancer (NSCLC), and Eylea Inhibitor (REGN2817), which is in Phase III clinical trials for the treatment of diabetic macular edema. NSCLC accounts for approximately 10% of all new cancer cases, and diabetic macular edema is a common complication of diabetes. Both diseases affect millions of patients worldwide. REGN’s current valuation appears to be in line with that of other stocks in the biotechnology sector. It’s expected to grow at a rate of 31% over the next five years, according to analysts.
Prometheus Biosciences (RXDX)
Prometheus Biosciences is a biopharmaceutical company that develops a therapy for treating Fragile X Syndrome. Fragile X Syndrome is a rare genetic disease affecting the nervous system, causing intellectual and developmental disabilities and various health complications. The company’s lead product candidate, pyramid-SAM, is in a Phase II clinical trial to treat the disease. RXDX has been steadily growing its top-line growth rate of 29% is expected to continue over the next five years. It’s also worth noting that this stock has a low price-to-earnings (PE) ratio of 12.4, which makes it a potentially attractive investment opportunity. These stocks are just some of the best biotech stocks to buy in 2022. All of them have been doing well in recent months and years. They are all expected to report strong financial results shortly. You can buy them now and then wait a few years to see how well they perform.