Buz Investors Best Biotech Stock 2017 The biotech industry is one of the more lucrative–if volatile–sectors around for heady investors. With so much depending on government regulation, competition, and public opinion, there’s a lot of room to make big gains in the biotech industry, and a lot of room to see your money evaporate before you can say “Phase III approval.” That’s why it’s so important to find a solid company with both longevity and strong growth potential; otherwise, you might find yourself on the losing end of a biotech trade. For me, Amgen, Inc. (NASDAQ:AMGN) stock is the best biotech stock for 2017 for exactly the reasons mentioned above.
Amgen is among the world’s largest biotechnology firms, and as such, AMGN stock is one of the more valuable tickers on the market. One of its flagship treatments is “Neulasta,” two drugs used to prevent infections in patients undergoing cancer chemotherapy.
It’s leading seller is “Enbrel,” a tumor necrosis factor blocker used to deal with rheumatoid arthritis and other autoimmune diseases. Both Enbrel and Neulasta account for over $1.0 billion each in sales and are strong propellants of the AMGN stock price.
New results from the “Repatha” (a heart medication) cardiovascular outcomes trial are forthcoming and likely to show positive results for the medication. Repatha was a big part of Amgen’s gains in the last year, growing from $10.0 million in sales during 2015 to $141.0 million in 2016. Being a newer drug, this coincides with the approval process of various government drug administrations, but shows promise for the company heading into 2017. (Source: “Amgen Highlights Landmark Repatha® (Evolocumab) Cardiovascular Outcomes Study Amongst Data To Be Presented At ACC.17,” Yahoo! Finance, March 6, 2017.)
The sales potential for Repatha is in the billions as heart disease is the leading cause of the death in the U.S. In fact, according to Centers for Disease Control and Prevention numbers, one if four deaths in the U.S. comes as a result of heart disease. The price, however, could present a barrier to adoption by insurance companies. (Source: “Heart Disease Facts,” Centers for Disease Control and Prevention, August 10, 2015.)
We have to get our drug industry coming back. Our drug industry has been disastrous, they’re leaving left and right. They supply our drugs but they don’t make them here, to a large extent,” Trump said during a press conference in January. “And the other thing we have to do is create new bidding procedures for the drug industry, because they’re getting away with murder.” (Source: “Trump says drugmakers are ‘getting away with murder,’ and biotech stocks plunge,” CNBC, January 11, 2017.)
Combine this with other problems in public perception, like infamous “Pharma Bro” Martin Shkreli and the various other scandals involving big pharmaceutical companies, and you have a climate that is certainly not friendly towards the biotech industry. One misstep can cost a company billions on the market, if they don’t play their cards right.
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