What is Biotechnology?

In the simplest terms, Biotechnology is the use of biology to solve some of the world’s biggest problems, such as hunger and disease. A simple example of biotech is using yeast to make bread rise and in the fermentation process of alcoholic drinks. What technology does is find the easiest and most convenient solution to a problem.

Biotech began to seriously take root in the 1960s and 1970s. The earliest companies include Genentech, Biogen, Genex, Amgen and Cetus. Johnson &' Johnson is the biggest American biotechnology firm with over $457.2 billion in market capitalization.

One of the most significant milestones in the biotech industry is genetic engineering. It involves using technology to change the DNA makeup of an organism. It may involve either changing the makeup, deleting portions of it or adding new segments. Through genetic engineering rose GMOs, that is, Genetically Modified Organisms.

While there are numerous schools of thought regarding the ethical considerations of biotechnology interventions, it is not a hidden secret that this is where the money is. We have compiled some of the best-performing biotech stocks for Q2 2O22.

Your Elaborate Guide to the Best-Performing Biotech Stocks for Q2 2022

With the emergence of the COVID-19 pandemic, most investors appreciated the economic importance of investing in biotech industries. When the pandemic started, biotech companies were up and running, trying to develop the best vaccine and ways to curb the disease. They received funding from governments to international donors, all looking to invent a solution to counter the virus. It is not surprising, therefore, to find that some of the best-performing stocks for Q2 2022 are pharmaceutical companies providing COVID-19 vaccines.

Some of these stocks were doing well even before the pandemic, mainly because their role was to improve the quality of life, which is an incessant task. On the other hand, others found that the pandemic was a launching pad to better investment options and higher stock prices. Below is a comprehensive list of some of the biotech stocks that you should be on the lookout for during Q2 2022:

Novavax, Inc. (NVAX)

As of July 21, 2022:

Price: $59.57

Daily change: +1.57% (2.71% today)

Volume: 11,537,027

Novavax, Inc. is an American company that creates vaccines to deal with severe infectious diseases like Ebola, Influenza, and COVID-19. It was founded in 1987 and has a net revenue of $1.15 billion. Novavax’s vaccine, called Nuvaxovid, was approved as the fifth COVID-19 vaccine after Pfizer, Moderna, Janssen, and AstraZeneca.

Its stock, NVAX, is Nasdaq listed and has a market cap of 4.65 billion.

Intercept Pharmaceuticals, Inc. (ICPT)

As of July 21, 2022:

Price: 14.56

Daily Change: 0.90%

Volume: 506,979

Founded in 2002, Intercept Pharmaceuticals specifically deals with chronic liver diseases, such as cirrhosis. It reported a revenue of $250.2 million in 2019. Its main brainchild is Ocaliva, which is obeticholic acid (OCA) used to treat primary biliary cholangitis, a disease that causes the degeneration of one’s bile ducts inside the liver.

Pfizer Inc. (PFE.ST)

As of July 21, 2022:

Price: 519.00

Daily Change: -2%

Volume: 1,394

Established in 1849 by two German cousins, Charles Pfizer and Charles F. Erhart, Pfizer Inc. produces drugs that deal with neurology, oncology, endocrinology, and immunology. Pfizer grew in the 1880s due to its groundbreaking production of citric acid, and in 2020, its Pfizer–BioNTech COVID-19 vaccine provided unspeakable relief in the form of over 1.5 billion doses.

It may appear uncanny to include stock with a negative daily change on this list, but considering the times we live in, buying Pfizer stocks would be wise. Inasmuch as investors are now wary over its future, the fact of the matter is that we will always be unsure of Pfizer’s future until the COVID-19 pandemic is over. Even then, the biotech company will still be in the production of other medical interventions. PFE.ST has gained over 31% in profits over the past year alone. However, as the world prepares for a post-COVID world, it is best to buy Pfizer’s stocks in moderation.

Beam Therapeutics Inc. (BEAM)

As of July 21, 2022:

Price: 67.91

Daily Change: +3.30

Volume: 1,826,276

It is an American biotechnology company that deals with gene therapy and genome editing research. It was founded in 2017 by Feng Zhang, David Liu, Keith Joung and John Evans. As the founders sought capital for the firm pre-launching, they successfully raised $1 billion in venture capital.

When Beam Pharmaceuticals successfully treated a rare liver disease using CRISPR-Cas9, its stocks rose by 64%. Their cap increased from $300 million to $800, which is more than 200%.

Axsome Therapeutics Inc. (AXSM)

As of July 21, 2022:

Price: 44.39

Daily Change: +0.42

Volume: 795,982

Axsome revolutionizes the treatment of Central Nervous System (CNS) conditions by providing ingenious therapeutic solutions to patients. Axsome seeks medical solutions to depression, Alzheimer’s, and smoking addictions. If approved, its medicinal solution to depression could cause the stock’s price to skyrocket.

AXSM is one of the most attractive stocks to buy in Q2 2022 because of the relevance these three interventions could have in the medical world.

Illumina, Inc. (ILMN)

Price: 200.66

Daily Change: +6.02%

Volume: 1,216,051

Unfortunately, one of the ways biotech stocks become profitable is if the disease they seek to cure or prevent effects many people. Illumina, Inc. was formed in 1998 and performs cancer research. In 2015, with GRAIL, Illumina received $100 million in funding from Bill Gates and Jeff Bezos to increase and improve its blood testing for cancer tumors.

ILMN has a market cap of 31.524 billion dollars.

This list is not exhaustive; there are numerous other well-performing stocks in the market. The stock market is risky, and the biotech market is even riskier. Some biotech companies may incur millions of dollars undertaking research only for the products never getting to the market or failing to perform as required. Before purchasing any biotech stocks, it is best to research or involve a professional to get the most accurate valuation of the firm.