The race is on. As the world gets weary of COVID-19, the race to develop viable treatments and vaccines has been fierce. However, the level of risk is extreme – pick the right stock, and you could make a fortune. Make the wrong call, and you could get wiped out biotech companies in Florida.
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Four Biotech Companies in Florida
With that in mind, four biotech firms have captured our attention. In this report, we’ll break down whether they are good bets, or are just riding a wave of hype. Here are the Four biotech companies in Florida.
Like many small biotech companies, CytoDyn has toiled in obscurity for years. Founded in 2002 and a public concern since 2005, this firm specializes in developing treatments for immunodeficiency diseases.
At the moment, Leronlimab is their superstar compound. It is a human-modified antibody designed to specifically target CCR5 receptors on lymphocytes. Lymphocytes are white blood cells that combat pathogens.
Leronlimab’s ability to treat HIV is its greatest success. By interacting with the CCR5 receptor on immune cells, Leronlimab prevents HIV from infecting them. Studies have also shown that this biotech companies in Florida compound may be able to halt breast cancer metastasis. It does this by preventing GvHD and other inflammatory conditions.
Treatment for COVID-19
However, it has also shown promise as a treatment for COVID-19. Presently, trials have been ongoing to see whether Leronlimab can interfere with the process of the coronavirus. So far, results look good.
Studies have uncovered two key effects. First, Leronlimab appears to help the body produce more CD8 T-lymphocytes (which COVID decreases).
Second, it seems this compound has a calming effect on the production of cytokines. Cytokines are the immune compound largely responsible for the respiratory distress experienced by patients with severe COVID cases.
Trial and Treatment Progress
At present, Leronlimab has progressed to a Phase 2 randomized trial and a Phase 2B/3 trial. If progress continues, CytoDyn’s stock could get a healthy boost in the coming months.
CytoDyn (CYDY:OTCMKTS) currently sits at around 2.40 USD per share. For investors with a healthy risk tolerance, this equity could return a healthy near-term ROI. Click here to learn more on CytoDyn and read the latest news.
2. Gilead Sciences
Oh, how the mighty have fallen. In the opening days of the COVID-19 pandemic, one of Gilead Science’s (GILD:NASDAQ) top drugs appeared to be effective against coronavirus symptoms. A half-year later, subsequent studies have revealed that to be an inaccurate assertion.
According to a study in the British Medical Journal, Remdesivir, along with Lopinavir-Ritonavir, Interferon Beta-1a, and Hydroxychloroquine had little/no effect on COVID 28-day mortality.
That biotech companies in Florida body blow compounded a year of setbacks for Gilead Sciences, which has lost 30% of its value since May. The COVID news alone sent GILD down about 8% from its mid-October highs.
Is Gilead Sciences a buy?
Unlike many players in the biotech space, Gilead is relatively stable. Its greatest source of strength is Remdesivir’s role in treating HIV. Thanks to this drug’s antiviral properties, HIV has gone from a death sentence to a manageable condition.
Secondly, GILD pays out a handsome dividend. It currently has a yield of 4.5% – well above the S&P average of 1.7%. And, with a dividend payout ratio of 44.3%, Gilead Sciences is financially capable of meeting its obligations.
For these reasons, GILD may be entering “buy” territory, if it isn’t already.
Back in early October, we had our peak 2020 moment. Days after the first presidential debate, President Donald Trump tested positive for COVID-19. As an older, overweight man, the likelihood of a bad outcome was high.
Then, reports leaked that President Trump had received an experimental coronavirus drug from these biotech companies in Florida.
Days later, the leader of the United States had made a complete recovery. Since then, Regeneron (REGN:NASDAQ) has been revealed to be the company behind that mystery treatment.
Veteran in the Biotech Space
Around since 1988, Regeneron is a veteran in the biotech space. Since their founding, they’ve developed several commercially-successful drugs like Arcalyst, a treatment for rare auto-inflammatory conditions. Since then, seven of their drugs have also received FDA approval.
It took 20 years of grinding for Regeneron to develop their first commercial success. Fast forward to today, and they’re pulling in nine figures per annum. According to their last revenue report, they took in more than 8 billion USD.
Their stock price, which is reflective of their past successes, stood at 373.35 USD per share at the start of 2020. However, when we filed this report, REGN had closed at 567.04 USD. That’s a 34% rise over ten months.
Does REGN have more room to run?
Results from initial COVID-19 studies show their drug cocktail has reduced viral load and relieved symptoms. If subsequent studies verify earlier results, it will be a boon for the company. However, this boost will only last as long as COVID does. Once a vaccine is released, REGN’s price will correct.
However, its stable of commercially successful drugs makes Regeneron a solid long-term investment. For this reason, REGN isn’t just an intriguing short-term buy, but a long-term one as well. Once the COVID boom ends, we advise buying the inevitable selloff.
It’s coming down to the home stretch. Over the past year, hundreds of biotech companies have been developing COVID-19 vaccines. However, only ten have made it to phase III trials – the last step before government approvals.
AstraZeneca (AZN:LON), a British/Swedish biotech firm, is among that elite group. Earlier this week, word got out that elderly participants – the cohort most at risk from vaccine complications – tolerated AstraZeneca’s vaccine.
They also showed a strong antibody response – another requirement for a successful vaccine candidate. In response to this news, several high-profile governments announced massive pre-orders with AstraZeneca. Germany has reportedly bought “tens of millions” of doses, while the Serum Institute India has placed a 300 million dose order.
The AstraZeneca vaccine Development Process
They hasn’t been without controversy, though. During early trials, several people fell ill, and a man in Brazil died. In all cases, though, AstraZeneca halted trials while it investigated. In each instance, it wasn’t apparent whether the vaccine was responsible.
Is AstraZeneca the likely winner of the COVID vaccine sweepstakes? In our estimation, they appear to be the favorite. As an established Big Pharma company.
Barring a significant setback, it looks like they’ll be among the winners of this race. At a heady price of 7,880 GBP per share, this isn’t a cheap play. If you’re a high roller, though, buying a handful of AZN may prove to be a profitable investment biotech companies in Florida.