Unlike most industries, the inflation and the post-pandemic effect barely affected the biotechnology industry. In fact, many biotech companies thrived in those hard times. In this article, we will go over 3 of the best biotech stocks you can add to your portfolio, Kezar Life Sciences, Inc. (NASDAQ: KZR), Decibel Therapeutics (Nasdaq: DBTX) and Sutro Biopharma, Inc. (NASDAQ: STRO).
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#1 Best Biotech Stocks: KZR
Starting the day with over a 70% run up, Kezar Life Sciences, Inc. (NASDAQ: KZR) is the talk of the town today. The biotechnology company just announced positive results on an ongoing study for its lead product candidate which was the spark that ignited the KZR stock major increase.
As a leading clinical-stage biotechnology company, Kezar focuses on discovering and developing new small molecule therapeutics for immune-mediated disease and cancer. The company operates in the United States, accordingly Kezar is trying to fill the gaps in the US therapeutics market.
On 27 June, Kezar released the results of the mission phase 2 trial evaluating Zetomipzomib (KZR-616) – KZR’s current lead product. The drug is planned to treat patients of lupus nephritis, a disease estimated to hit 1.5 million US citizens and at least five million people around the world.
The results of the study show significant positive results, overall Zetomipzomib is shaping up to be an immunomodulatory, well-tolerated, and steroid-sparing drug. On that note, the company’s Chief Medical Officer – Noreen R. Henig, M.D. – said
Based on the strength of these results, we plan to continue developing Zetomipzomib for patients with lupus nephritis, as well as evaluate development opportunities for systemic lupus erythematosus.
Following the initial 71% run-up, KZR dropped a little however the stock is still trading much higher than it was yesterday with almost a 50% increase. Currently, KZR is trading at $8.35 with a newly formed resistance near 12.25 and primary support around 5.61 as well as secondary support at 4.36.
Meanwhile accumulation is trending downwards and RSI is at 70 indicating that the stock is overbought. On the other hand, MACD is on a recent bullish crossover. Although some of the indicators are showing negative signs, after a major run that’s nothing to worry about. With that in mind, many investors are bullish that following another news on Zetomipzomib, KZR might go on a higher run-up and reach its 52-week high of $18.3.
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#2 Best Biotech Stocks: DBTX
Among the best biotech stocks today is Decibel Therapeutics (Nasdaq: DBTX). Like KZR, Decibel is a clinical-stage biotechnology company. However, Decibel works on discovering and developing treatments for restoring and improving hearing and balance.
The biotech company recently announced the results of its Phase 1 clinical trial of DB-020. As a drug developed to protect cancer patients on cisplatin chemotherapy from ototoxicity that leads to permanent hearing loss, DB-020 will be the only treatment in the market available for ototoxicity. With no direct competitors, the potential of the drug is extremely promising, especially since it’s already showing positive results.
The Phase 1 clinical trial included treating patients with DB-020 in one ear and a placebo in the other. The results of the trial revealed that around 88% of patients experienced ototoxicity in the ear that was treated with a placebo. Whereas, 87% of these patients were partially or completely protected from ototoxicity in their DB-020-treated ears.
These great results support the continuation of the clinical trials and soon enough the treatment will be ready for the public. Decibel’s management promises to update its shareholders at the upcoming medical conference.
Currently, DBTX is trading at $2.73 with resistance around 2.88 and support near 2.23 as well as a secondary one at 1.86.
Although MACD is on a bullish crossover, accumulation is on a downwards trend. Meanwhile, RSI is holding at 60 indicating that the stock might be slightly overbought at the moment. Upon the release of the treatment, the stock might witness another run-up, to break its resistance and trade at its YTD high of $9.75.
#3 Best Biotech Stocks: STRO
Lastly, Sutro Biopharma, Inc. (NASDAQ: STRO) made the list of the best biotech stocks today on account of its collaboration with a global pharmaceutical company that has operations in over 70 countries. Which resulted in a 23% increase in the stock’s value.
Recently, Sutro Biopharma announced its entrance into a global strategic collaboration and license agreement with the Japanese company – Astellas Pharma. Under the terms of the agreement, both companies will work on developing new immunostimulatory antibody-drug conjugates – iADCs.
The drug is planned to treat cold tumors and provide a reliable drug to patients who are not responding to the existing immunotherapies. With the expertise of Sutro and Astellas, the potential of this treatment is unlimited.
The agreement states that STRO will obtain $90 million in cash to develop iADCs for 3 biological targets. Following that, the company may be eligible to receive up to $422.5 million for the next stages of development and commercialization of each product candidate.
Additionally, Sutro has the option to contribute to the costs and profits of the product candidates in the US. However, if STRO exercises that option for one product candidate, then both companies will equally split the costs of development and commercialization of that product. Accordingly, the profits or losses of that product candidate will be equally shared among Sutro and Astellas.
Upon the announcement, STRO witnessed a 20.79% increase to be traded at $5.22. The stock has a newly formed resistance at 5.25, a primary support around 4.15 and a secondary stronger one near 3.38.
The RSI stands at 72 indicating that the stock is currently overbought. Meanwhile, accumulation is on a downwards trend, but MACD is on a recent bullish crossover with no signs of another crossover in the near future.
Bottom Line
KZR, DBTX, and STRO are all gaining momentum and witnessing rapid increases today. These run-ups are usually short-lived, however, with the biotechnology industry thriving, these companies might reach new highs. All in all, you should not chase but buying the next dips and adding these outstanding companies to your portfolio might prove to be a great investment for you!
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As always, good luck to all (except the shorts)!
Disclosure: We have no business relationship with any company whose stock is mentioned in this video. Viral Stocks is not an investment advisor and this video does not provide investment advice. Always do your own research, make your own investment decisions, or consult with your nearest financial advisor. This video is not a solicitation or recommendation to buy, sell, or hold securities. This video is our opinion and is meant for informational and educational purposes only and does not provide investment advice. Past performance is not indicative of future performance.
