Medical innovation has come a long way in the past couple of decades as the mix of technology and traditional medicine has given the world access to new therapeutics for a wide range of conditions.
Of course, this has created tons of opportunities for the companies creating new therapies and the investors that stand behind them. In fact, according to IBIS World, the biotechnology market is worth well over $135 billion annually, and that number is growing rapidly.
However, with so many stocks in the sector, where do investors start? In my opinion, three of the best biotech stocks to watch at the moment include:
Axsome Therapeutics (NASDAQ: AXSM)
Axsome Therapeutics is a clinical-stage biotechnology company that specializes in disorders of the central nervous system and analysts suggest that the stock could climb by well over 100% in the next year.
Well, the company is working on two high value drugs, AXS-05 which is being developed as an option for major depressive disorder and AXS-07 which is under review by the FDA for migraine headaches.
If approved, analysts believe that AXS-05 could bring in more than $1.3 billion in annual sales at its peak while AXS-07 may drive more than $300 million in annual sales. If all goes well, by April of 2022, the company could have AXS-07 on the market.
At the same time, the company has a central nervous system therapeutic pipeline that could prove to be a big win for investors. Not to mention, the company makes a great takeover candidate.
After all, there are tons of blue chip biotech companies that have been working in the central nervous system space and could benefit greatly from the company’s long-term pipeline.
Silo Pharma (OTCMKTS: SILO)
Silo Pharma is a developmental stage biotech company that’s mixing the modern approach to medicine with the long-standing approach of medicine men through the use of low-dose psychedelics.
The company’s primary focus is on the use of psilocybin, a compound found in psychedelic mushrooms, as a therapeutic option for some of the world’s most debilitating conditions. Some conditions the company is addressing include Parkinson’s disease, Fibromyalgia, Post Traumatic Stress Disorder (PTSD), and various forms of Cancer.
Most recently, the company announced that it’s taking part in an Investigator Lead sponsored study with Maastricht University. The study will focus on the use of low doses of LSD and Psilocybin as a potential therapeutic for emotional dysfunction in Parkinson’s disease. At the moment, the investigator is acquiring the substances for the study and will likely soon finalize documentation to send to the Ethics Committee.
However, psychedelics aren’t the only therapeutic approach the company is taking.
Most recently, the company announced that it acquired intellectual property surrounding homing peptides as a potential therapeutic for autoimmune diseases, the first target of which is rheumatoid arthritis.
Not to mention, the company is in a strong financial position. In fact, the company’s ownership of 1 million shares of DatChat are currently worth more than $6 million. That amounts to more than a third of the company’s current market cap, pointing to a significant undervaluation.
If you’re looking to get in on the ground floor of biotech companies that are likely to make waves in the market in the long run, the stocks listed above are well worth your attention. Not only are they addressing high-value indications, their work to date has been promising. All told, these companies have the potential to grow into forces to be reckoned with ahead.
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Disclosure. CNA Finance is not a financial advisor or broker dealer. Trading in penny stocks can lead to a significant loss of capital. CNA Finance has a financial relationship with Silo Pharma.