Biotech stocks may be one of the most speculative sectors of the market, but with aging baby boomers creating a surging demand for better care and treatment options, new innovations, and multi-billion-dollar merger and acquisition potential, the sector is not only explosive, but one of the most profitable.
Sure, the sector can be plagued by long development lead times, and there is a high risk of failure, but once you find a good stock, the rewards can be significant.
Biotech stocks with major US FDA dates approaching can offer sizable opportunities, especially if their treatments show signs of success.
Here are two stocks with major catalysts nearing.
Biotech Stock No. 1 — Nabriva Therapeutics
At the moment, the stock is consolidating with heavy volume. As we near June 30, 2019, we believe the stock could push significantly higher. That’s when the FDA will rule on its Contepo IV drug for the treatment of complicated urinary tract infections. If approved, it will be a first-in-class intravenous (IV) antibiotic with broad spectrum activity against Gram-negative and Gram-positive organisms, including ESBL-producing Enterobacteriaceae and other multi-drug resistant organisms. Annually, some three million cases of cUTIs require hospital treatment in the U.S. for Gram-negative infections.
Biotech Stock No. 2 — Heron Therapeutics
The stock is just beginning to accelerate higher, as we near the FDA’s April 30, 2019 decision on HTX-011 for the management of post-operative pain. In studies, patients injected with HTX-011 reported significantly less pain intensity than those given bupivacaine. It also has proof that shows that patients given HTX-011 were less likely to require opioid rescue medications.