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    Five Best Biotech stocks to watch for in 2022

    By Ali Hassan

    Apr 13,2022

    5:03 AM UTC

    Biotechs are becoming a dominating force in the healthcare sector. Some scientists believe that we’re in the “golden age” of biotechnology.

    2021 was a difficult year for biotech stocks, generally, despite many of those trading at dirt-cheap valuations that don’t even reflect the cash they have in hand. It was expected that Biotechs would perform on top as COVID is dominating the headlines over the past 22 months.

    Entering 2022, Biotech stocks are expected to perform better. Some biotech stocks follow the old maxim that what goes up will come down. Others, though, adhere to a more upbeat principle: winners win. In that regard, we have compiled the five best biotech stocks to invest in, in 2022.
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    Novavax (NVAX)

    Novavax (NVAX) is a vaccine specialist and that’s the reason it’s right on top of our list. Despite 2021 being considered a poor year for most of the biotechs, NVAX shares have soared over 90% year-to-date.

    Well, that is not pretty much it for NVAX as 2022 holds much more for the biotech. Novavax now has multiple potential COVID-19 catalysts. Novavax’s vaccine was cleared by European regulators and is set to become the first Covid-19 shot of its kind in the region. That will give countries another tool as they race to protect their populations in the face of the omicron variant.

    Novavax is also working in collaboration with the World Health Organization to distribute its COVID vaccines. WHO has granted a second Emergency Use Listing for NVAX’s vaccine. Whereas, the company expects to file for U.S. Emergency Use Authorization of its covid vaccine by the end of this month. It is just a matter of time as FDA approves Novavax’s vaccine. It will be probably during the first quarter of 2022. NVAX shares are in a high upside based on what’s going around.

    We also look at Novavax to achieve progress with its development of a combination COVID-19/flu vaccine next year as well. The company has previously reported positive late-stage results for its flu vaccine candidate NanoFlu. A NanoFlu combo could be a big winner if COVID-19 becomes endemic.

    The average Wall Street price target for Novavax stock reflects an upside potential of more than 30% over the next 12 months. If Novavax wins additional supply deals, NVAX stock just might deliver even bigger gains in 2022 than it has in 2021.

    Morphic Holdings (MORF)

    Morphic Holdings (MORF) is the perfect example of a biotech company that has its head in the clouds, but its feet firmly planted on the ground. They are pioneering all-new, breakthrough technology to address a firmly established, and very lucrative, market for a chronic illness.

    MORF has delivered over 40% gains year-to-date, which is more than the average biotech stock. The biotech stock currently sits near its 52-week lows and is expected to give good returns in 2022.

    The company is pioneering the science behind integrins, a previously little understood protein in the human body. Over time, this integrin technology will allow the team to attack a wide range of serious diseases with unmet needs. For the near to mid-term, the company is focusing on Autoimmune Disease, Fibrosis, and Cancer.

    Morphic’s most promising near-term project is an agent known as MORPH-057. The company is addressing an old problem; namely, Ulcerative Colitis and Crohn’s disease. The main objective is to create a therapy for these diseases with low-cost pills. Currently, inconvenient biologic injectables such as Entyvio are being used to treat these diseases. The team at Morphic is currently leveraging the new integrin technology to create a version of Entyvio in a pill.

    On top of all that potential, Morphic is also very well funded. According to management, the company currently has a cash “runway” that should last until late 2024. This would give them 3 solid years to advance their clinical programs before having to worry about raising funds.

    Wells Fargo has given an overweight rating to MORF stock with a price target of $81.

    Syros Pharmaceuticals (SYRS)

    2021 has been poor for the emerging biotech, Syros Pharmaceuticals (SYRS). Much like Morphic, SYRS is a pioneering brand new technology to service some giant unmet needs in the medical community.

    Specifically, Syros is working in the field of gene control, which is a method of turning on, turning down, or turning off the expression of select target genes in the human body.

    SYRS stock has failed big time to impress its shareholders in 2021.  Currently, it sits around its 52-week lows. Well, this is the perfect time to bet on SYRS. You would ask this question why you should go for SYRS?

    The last decade has seen a revolution in oncology.

    However, solid cancers have remained notoriously tough to treat. Syros is targeting two of the toughest adversaries medical science has ever faced. Pancreatic cancer is notorious for a poor prognosis and Colorectal Cancer is an infamous killer. Syros has produced promising early-stage data against both of these maladies, and any kind of effective treatment at all would represent a huge leap forward for modern medicine.

    Amazingly, the biotech community has largely overlooked Syros. Any effective treatment against solid cancers could easily bring in $1 Billion a year in revenue, which could see SYRS triple, quadruple, or even quintuple in value.

    Of course, all data is still preliminary, and a long and risky road awaits Syros shareholders. But many may find the risk&reward equation to be appealing.

    Eli Lilly and Company (LLY)

    One biotech that’s been a great holding in 2021 is Eli Lilly (LLY). The company’s business has been performing well and is expected to continue its growth momentum in 2022. Investing in the drugmaker this year would have generated returns of more than 65% thus far for your portfolio, well above the S&P 500’s gains of around 25%.

    In its most recent quarter, the company’s top line came in at $6.8 billion, up 18% year over year. Even when factoring out the boost in sales from its COVID-19 therapies, sales were still up 11% from the prior-year period.

    Although the company expects “minimal revenue” from its COVID-19 therapies next year, investors shouldn’t rule out higher sales. While much of the bullishness surrounding LLY stock next year could be from drugs that might not even generate meaningful revenue in 2022. In October, the company initiated a rolling submission of its Alzheimer’s drug, donanemab. The FDA could decide on the treatment by the latter half of next year.

    Earlier this year, shares of Biogen soared more than 38% on the day investors learned that the FDA granted accelerated approval for the company’s Alzheimer’s drug, Aduhelm. Eli Lilly is going to have a trial that compares its drug against Aduhelm. Favorable results there could also drive a lot of excitement behind its shares.

    Between the potential for continued growth next year and some exciting drug reviews taking place in the near future, there are plenty of catalysts that could propel Eli Lilly’s stock to new heights in 2022.

    BioNTech (BNTX)

    BioNTech (BNTX) made headlines with the pandemic. The biotech in collaboration with Pfizer has developed the leading coronavirus vaccine on the market, Comirnaty. BNTX is one of the least risker stocks on this list of the five best biotechs.

    BioNTech is reaping the benefits of its vaccine development with Pfizer. In the most recent quarter, the company recorded roughly $6.8 billion in revenues. BNTX also recorded a profit of $3.6 billion.

    Thanks to its coronavirus-related efforts, BioNTech’s stock has soared by nearly 250% since the beginning of the year. And the best news is that the windfall it is currently experiencing as a result of Comirnaty is far from over. With the new COVID-19 variant, Omicron, we would see BNTX make the headlines in 2022.

    Apart from that, BioNTech can take advantage of its current pile of cash to advance its pipeline candidates. The company boasts more than 20 programs, many of which are going after several forms of cancer and infectious diseases.

    In November, BioNTech announced that the FDA had granted fast track designation to BNT111, a potential therapy for melanoma. This designation helps speed up the review process for promising treatments that address an unmet need. Several other key operations are underway.

    For the following reasons, we expect that BNTX stock will continue the upward trajectory.

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