Biotechnology – often referred to as biotech – benefits from both biology and technology to create innovative and fast solutions that can correctly and efficiently address health issues.
Biotech has no geographical boundaries, since a major advantage of this technology is that it can be easily reproduced and used at a global scale.
Especially due to the pandemic, institutions and people realised how important it is to create and deliver medicines as fast as possible, and to help the highest number of people.
But biotech has not only to do with vaccines: it addresses countless diseases, including genetic diseases and cancers. Companies that focus on this technology are valuable tools to improve the health of people and the planet.
Of course, not all companies are equal, as well as not all stocks related to this type of company are equal: in this article, we will cover the best biotech stocks to buy in 2023, providing you with useful information if you’re interested in this fast growing sector.
- 1 What are Biotech Stocks?
- 2 TOP 5 Biotech Stocks – 2023
- 3 How to Invest in Biotech Stocks?
- 4 How to Choose Biotech Stocks to Invest In
- 5 Where to Buy Biotech Stocks?
- 6 Conclusion
What are Biotech Stocks?
Biotech is a term used to indicate biotechnology. It mixes biology and technology to find solutions that can improve the health of human beings and, in general, the health of the planet.
The fact that this technology exploits biology allows us to study how organisms function and what are the processes they use to stay healthy.
Biotechnology doesn’t only involve the creation of medicines, but also food and environmentally friendly products.
Biotech stocks are shares of those companies that use biotechnology to create new products, and that are listed on public exchanges. People interested in this kind of technology can easily invest in these companies, which are currently highly considered.
In fact, after the pandemic, companies in the biotech sector gathered the attention of investors.
As you will see, some of the top biotech stocks to invest in 2023 are related to those companies that were involved in the creation of anti-Covid vaccines.
TOP 5 Biotech Stocks – 2023
INOVIO is a biotech company focused on studying DNA to deeply understand its functioning, in order to reproduce its mechanisms to create new medicines.
The goal of the medicines created by INOVIO is to act on cells to make them activate an immune response to different kinds of diseases.
Infections, cancer, and health issues associated with the human papillomavirus (HPV) are some of the diseases the company aims to treat thanks to DNA medicines.
To reach this goal, the company also created its own technology.
SynCon® is the algorithm developed by INOVIO: it is used to study the DNA sequence and identify the target antigen – the antibody – of a disease in order to use it in the manufacturing of a new medicine.
Moreover, INOVIO developed its own smart devices. CELLECTRA® devices were created to allow experts to open reversible small holes in cells and inoculate the newly created plasmids.
Finally, INOVIO Pharmaceuticals is a biotech company not only focused on finding new biotech-based solutions, but also in distributing them and in creating proprietary technology.
Ocugen is an innovative biotech company that makes patients the focus of the products the company is able to create and distribute.
Ocugen mainly uses gene and cell therapies. They aim at creating single products that can treat multiple diseases
After the outbreak of the pandemic, Ocugen contributed to research a vaccine against the pandemic, further improving its expertise in the creation of vaccines.
Despite this, the main focus of the company remains gene and cell therapies.
Gene therapies are mainly addressed to retinal diseases, also inherited diseases. The company also aims at treating blindness, actually helping millions of people across the globe.
Cell therapies are mainly focused on treating orthopaedic issues, including serious diseases like cartilage lesions.
Ocugen also pays attention to the growth of the company in terms of quality of the workplace. In fact, Ocugen was nominated the best medium company to work for by the Philadelphia Business Journal.
Pfizer is a company with a global presence. It has a long history – it was established in the nineteenth century in the US, and it developed different corporate policies also to keep up with the times.
At the beginning of the twentieth century the company had sales for over $3 million, and has been one of the top companies for the production and distribution of medicines since the very beginning.
The company is committed to create medicines to treat different kinds of diseases, and it also has a particular attention towards sustainability, human rights and inclusivity.
In fact, the company also supports global healthcare initiatives through its grants, and cooperates with public institutions to improve health also in the poorest countries.
Its governance, focused on environment, health, and safety (EHS) is one of the reasons behind the success of the stocks of Pfizer.
Also in the case of Covid-19, Pfizer was one of the main companies involved in the creation and distribution of anti-Covid vaccines.
Moderna is one of those biotech companies that proved their expertise during the pandemic. The most interesting fact about the company is that it managed to produce a vaccine in just a couple of months – as reported on the homepage of the official website of the company.
Moderna uses biotechnology to study mRNA and create new medicines thanks to this innovative approach. The goal is to benefit from the information included in human mRNA to synthesise proteins able to help the body to reinforce its immune system and fight diseases.
The company doesn’t use this method only to create vaccines, but it also aims to create medicines to treat cancer and metabolic diseases – among other health issues.
With more than 10 years of experience, Moderna managed to create a proprietary platform, the mRNA DESIGN STUDIO.
Thanks to this platform, Moderna can study mRNA, target the right proteins, and reproduce them to create new treatments. This process can find countless applications for different kinds of diseases. The fact that the company uses both biotechnology and its proprietary platform allows them to reproduce proteins at scale, thus managing to create new products very quickly.
This also allows the company to adjust their production to face emerging diseases.
BBIO – BridgeBio Pharma
BridgBio Pharma closes our list of the top biotech stocks to buy in 2023.
This company is one of those focused on providing biotechnology-based solutions to create new medicines as fast as possible, in order to quickly respond to the needs of people.
BBIO is mainly focused on treating cancers and genetic diseases, some of the most challenging health issues to address.
The design of the medicines produced by the company is mainly based on genetic drivers and the most technologically advanced research and production methodology.
BBIO uses computational genomics and statistics to map genetic diseases, in order to better understand and address them and use a more efficient process.
Once the research of the company experts is complete, medicines are produced and tested, to be then delivered across the globe thanks to commercial infrastructures.
This allows the company to be one of the fastest companies for what concerns the production and delivery of new medicines.
Attention to transparency is one of the most prominent characteristics of BridgeBio Pharma, along with its capability to merge biotechnology, innovative medicines and the use of efficient financial models to serve people around the world.
How to Invest in Biotech Stocks?
As mentioned, the attention towards biotech stocks considerably increased especially after the pandemic.
Consider that, according to data published by BioSpace in April 2022, the biotech market experienced considerable growth. In 2021, the global biotech market size was worth $852.88 billion, and it is expected to reach $3.44 trillion by 2030, thanks to an annual growth rate of almost 18%.
According to IBIS World, the US biotech market only reached a size of $152.4 billion in 2023.
Interesting news for investors, who see in biotech an ever evolving technology that addresses issues that involve anyone.
This, for sure, makes it fundamental to know how to correctly invest in biotech stocks.
There are just a few points to consider, but they’re pivotal to succeed:
- Choose intuitive trading platforms. Competition in financial markets constantly increases, and always more people are interested in investing. A trading platform with low entry barriers in terms of technical knowledge will help you to find larger communities and an easy way to manage your investments.
- Research thoroughly about the market. Having at least a basic understanding of the topic might help you, but it’s far more important to understand how the sector you want to invest in is performing. For what concerns the stock you want to invest in, discover all the numbers and details related to the company and its management.
- Consider your goals first. Before investing, always think about how your investment fits your needs, your attitude, and your financial goals.
- Avoid panic. In general, no emotions should be involved in trading and investing. This is the most important skill of a good investor. Be disciplined and exploit all those tools that can help you avoid investing driven by emotions.
How to Choose Biotech Stocks to Invest In
Where to Buy Biotech Stocks?
Taking advantage of an online broker such as eToro is beneficial when investing in biotech stocks as it eliminates the requirement of going through multiple platforms to invest and trade the right stock. With the onset of the digital era, it has become difficult for investors to make the proper selection of a broker. Thanks to eToro, they can be certain that they will receive top-notch outcomes.
Step 1: Open your Personal Account
To open an account, you’ll need to fill an application form to provide the platform with some personal details, and more information about your investing and trading experience.
Once you complete your application, you’ll be ready to invest in the top biotech stocks of 2023.
Step 2: Upload an identity document
This is a document that eToro needs to comply with regulation in terms of KYC (Know Your Customer) and AML (Anti Money Laundering).
Documents are required not only to verify your identity, but also as a proof of residency and a proof that you own the bank account you want to use to invest on eToro.
Step 3: Deposit Your Funds
Even if eToro offers you a virtual wallet to test your trading and investment strategies, you need to deposit money in your real portfolio to have the opportunity to make real profits.
Depositing money will be easy, since eToro allows you to use both credit and debit cards.
Step 4: Find the Stock You Want to Invest In
eToro has a wide selection of stocks, and if you have something particular in mind, you can use its search bar to find it quickly. After you identify the stock you’re looking for, you can hit the “trade” button to initiate your order. In addition, you can use the available features to determine the stop-loss and take-profit price prices, thereby automating your trading – an important element, if you don’t want emotions to influence your trading activity.
Biotech is a type of technology that uses biology to find solutions that can improve human health and the health of the planet.
All those companies that are focused on this technology and are listed on public exchanges, give you the opportunity to invest in their stocks.
If you’re interested in this sector, you need to know more details about the market – as well as you need to find the right tools to invest.
For these reasons, we gave you more detailed information about the top 5 biotech stocks to buy in 2023 – along with some useful suggestions to choose the right tool.
Right now, the top biotech stocks are mainly related to companies that proved to be extremely fast and resilient during the pandemic, but also companies focused on addressing some of the most challenging health issues – like cancer and genetic diseases.
The top companies we covered are INOVIO, Ocugen, Pfizer, Moderna and BBIO.
Despite our information being reliable and well researched, never forget to do your own research before investing money.
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