3 Biotech shares with big catalysts around the corner

Investors who are keen on stocks that can make big moves in a short amount of time know that the biotechnology industry is full of them. At any given time, there are dozens of drug manufacturers facing scheduled opportunities that could cause their stock prices to rise or fall.

With so much to choose from, it’s easy to feel overwhelmed. If you have just enough time to keep up with a handful of biotechnological catalysts that are on the way soon, these three are worth your attention.

Data source: Yahoo! Finance.

1. Biogen

This company is the first to submit an application to the Food and Drug Administration for a new drug that slows the progression of Alzheimer’s disease. This ultimately deadly form of dementia affects about one in nine Americans over the age of 65, but there is still no medicine to prevent the disease from getting worse.

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We’ll probably find out if the FDA is going to stamp Biogen’s gold card on June 6, the latest proposed action date for the long-awaited approval decision of aducanumab. The FDA has twice rescheduled the action date for this controversial approval decision.

In the spring of 2019, independent data monitors hired to look at some identical core studies determined that aducanumab statistically has no chance of success. Instead of accepting a defeat, Biogen returned a few months later with a more recent analysis of the data.

2. Novavax

This biotechnology was on a long and sometimes tortuous journey to become a commercial vaccine manufacturer. Novavax’s COVID-19 vaccine, NVX-CoV2373, is the most successful candidate to date thanks to a core study in the UK showing an overall efficiency rate of 89.7% earlier this year. Another core study that took place in the US and Mexico in December last year will now read out the interim results any day.

With three coronavirus vaccines already approved, the FDA is likely to wait for confirmation of the ongoing nuclear study with NVX-CoV2373 in the US before considering an emergency permit. The US government has already ordered enough doses for every adult in the country Pfizer, Modern, en Johnson & Johnson (NYSE: JNJ), but recent interruptions to Johnson & Johnson’s COVID-19 vaccine may provide an opportunity for Novavax’s relatively simple vaccine candidate.

Although Novavax may have missed the boat in the US, the NVX-CoV2373’s ability to remain stable at temperatures already standard against existing supply lines could lead to international orders. In February, Novavax agreed to supply 1.1 billion doses to the international COVAX program.

3. iTeos Therapeutics

This cancer-biased start-up made its stock market debut last July, and its lead candidate EOS-448 will make a big appearance on Saturday, April 10, during the first session of the annual meeting of the American Cancer Society. Research (AACR). iTeos presents initial clinical trial data from a human evidence-of-concept study.

The medical community is eager to see if EOS-448 can boost the immune system’s responses to solid tumors by targeting TIGIT receptors found in immune cells. An increasing body of evidence suggests that TIGIT suppression may increase the effectiveness of today’s most successful cancer immunotherapy.

In 2020, Roche (OTC: RHHBY) begins a phase 3 trial with its own anti-TIGIT antibody, tiragolumab, in combination with Tecentriq, a treatment that fights cancer by turning off mechanisms that cancer cells use to hide from the immune system. Roche is not the only large pharmacy with deep pockets and drugs like Tecentriq that a new collaborator can use.

No guarantees

It is probably best to watch these biotechnological catalysts unfold at a safe distance. Encouraging data for EOS-448 may raise iTeos shares higher, but that’s no guarantee. Results of clinical trials are interesting enough to earn an early place on high-profile scientific conferences such as AACR are not necessarily good from an investor’s point of view. It is probably best to wait until we have proven that the leading candidate of iTeos can perform the task.

The FDA appears to be eager to approve aducanumab, but a panel of independent experts set up to weigh the risks against its benefits has repeatedly objected. The FDA may dominate experts, but the approval of aducanumab will provoke more criticism than the agency has ever experienced.

With a market capitalization of approximately $ 13.3 billion, it appears that the shares of Novavax have already priced a huge success for its COVID-19 vaccine. Positive Phase 3 results could push the stock higher in the short term, but the price could still fall in the long run if the company could not achieve high production targets.