For the past couple of years, the biotech industry has seen a massive boom as an increasing number of biotechnology companies raced to develop treatments and vaccines for the COVID-19 virus. Among investors, the biotechnology market remains a hot market showing signs of major growth long-term. In this article, we discuss some of the hottest Biotech stocks investors are looking at right now – Adaptive Biotechnologies Corporation NASDAQ: ADPT, Aldeyra Therapeutics, Inc. NASDAQ: ALDX and
BIOTECH STOCK #1: ADPT
The commercial-stage biotechnology company, Adaptive Biotechnologies Corporation (NASDAQ: ADPT) is most known for its work to transform the genetics of the adaptive immune system into clinical products to diagnose and treat diseases.
The company has been on investors’ radar ever since it launched the second test in its growing T-Detect franchise – T-Detect Lyme. By leveraging the body’s unique T-cell response to disease-associated antigens, T-Detect Lyme enables patients and healthcare providers to detect and diagnose early Lyme disease.
An early diagnosis of Lyme disease enables treatment to stop its progression. But, today’s standard antibody tests could miss up to 75% of Lyme disease cases in the early phase of infection.
In a recent clinical study of patients with early Lyme disease, the T-cell test proved more accurate with almost 99% specificity than other leading antibody tests. The test also showed over 1.5 times greater sensitivity than standard two-tiered testing (STTT) in numerous patients. Given that Lyme disease is the most common tick-borne illness with an average 476 thousand Americans diagnosed and treated every year, this test is a breakthrough that could bring a plethora of growth opportunities for ADPT moving forward.
Sharon Benzeno, Ph.D., chief commercial officer, immune medicine, Adaptive Biotechnologies seems bullish on the company’s future following the announcement:
The addition of T-Detect Lyme will support scaling clinical operations to enable our growing T-Detect portfolio, including testing in autoimmune disorders with high unmet need”
Now trading at $8.73, ADPT has cooled off following its recent run-up which formed a new resistance at 9.21. The stock shows a support at 7.71 & 6.75. Accumulation has been on an upward trend but is recently declining. Similarly, the RSI was at 75 indicating the stock was overbought but has now cooled off near 57. Meanwhile, the MACD has shown a series of bullish crossover but is now on the verge of a bearish crossover.
These indicators collectively show the stock losing its momentum following the run-up. The decline in accumulation could resemble the increasing number of investors cashing out for profits supported by a decreasing RSI reflecting the sell-out. Given that ADPT shows strong support at 7.71 & 6.75, bullish investors could wait for the RSI to regulate before finding a good entry point on this promising stock.
BIOTECH STOCK #2: ALDX
Since its inception, Aldeyra Therapeutics, Inc. NASDAQ: ALDX has been developing innovative therapies specifically designed to treat immune-mediated diseases. The company has been gaining attention mostly because of its two lead products – reproxalap and ADX-629 – which target systems-based mediators of inflammation: RASP (reactive aldehyde species). Currently in its late-stage clinical trials, Reproxalap targets patients with dry eye disease & allergic conjunctivitis.
As of recently, the company announced a new achievement in Phase 3 TRANQUILITY-2 clinical trial of reproxalap. According to the Schirmer test, a measure of ocular tear production and the dry eye disease objective sign most commonly utilized for drug approval – Reproxalap proved statistically superior to the vehicle for each of the two prespecified primary endpoints.
With this in mind, Jacob R. Lang, O.D., F.A.A.O. – a dry eye disease specialist for Associated Eye Care in St. Paul – commented that:
“Based on its rapid symptomatic control demonstrated across multiple clinical trials, reproxalap has the potential to be not only an important treatment option but a first-line therapy for dry eye disease.”
Looking to the future, Todd C. Brady – President and CEO – highlighted the great impact of this achievement:
For many of the more than 39 million U.S. adults who suffer from dry eye disease, we believe the need for a rapidly acting therapy with a novel mechanism of action is significant. We are confident in the potential of reproxalap to meet that need.”
Ending the trading week on a high note, ALDX is trading at $3.67 with support near 3.18 and 3.04. Its massive run-up earlier this month formed a new resistance at 4. The MACD is bullish but seems poised for a bearish crossover. Meanwhile, accumulation is on an uptrend and the RSI is at 78 – indicating the stock is overbought.
Considering these indicators, the stock could plummet to its support as the RSI cools off and investors cash out for profits. For this reason, bullish investors could wait for the indicators to regulate before finding a good entry point on this emerging biotech stock.
BIOTECH STOCK #3: ADTX
As a nation-leading advanced molecular diagnostics lab, Premier Medical Laboratory Services (PMLS) is fully certified by top laboratory accrediting organizations such as CLIA and COLA. Recently, the company announced it is adding AditxtScore to its growing menu of testing services.
AditxtScore allows patients to know the protection level they have from an immune response to the virus or vaccination. Given that a large segment of the population has already undergone vaccination for COVID-19, AditxtScoreä is well-positioned to provide information on immune status during the ongoing phase of the pandemic.
This could be crucial because while the virus continues to spread and the implications of the new variants are unknown, AditxtScoreä can be used to identify changes in immune response over time and contribute greatly to the continued understanding of responses to COVID-19 and its mutants.
ADTX is currently trading at $.1560 near its support of .1393. It also shows a resistance near .2496 and .3004. Accumulation has been trending downwards but is recently seeing a slight uptick. The MACD is bullish and the RSI is at 58.
The drop in accumulation could be the result of investors cashing out for profits following the run-up. However, the RSI continues to indicate the stock is slightly overbought. Investors bullish on the company’s latest announcement could find now a good entry point since the stock is trading near its support, or they could wait for the RSI to cool off to 50 before making an entry.
BOTTOM LINE
As the companies continue releasing updates and PRs regarding the progress and development of their products, these 3 biotech stocks could see major run-ups real soon. In light of these indicators, they are shaping up to be potentially profitable investments with a risk-reward ratio that is skewed towards a buy. Find out when is the best entry points from our free alerts.
As always, good luck to all (except the shorts)
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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.
