I think long-term investors should take positions in the companies that have created the recent technological breakthroughs that are making many of today’s biotech advances possible, asserts Jim Powell, editor of Global Changes & Opportunities Report.
To do so, you only need to include three companies in your long-term portfolio: Crispr Therapeutics (CRSP), BioNTech (BNTX), and either Moderna (MRNA) or Pfizer (PFE).
These companies created the genetic tools that pharmaceutical companies are using to develop vaccines to fight viral infections, and specialized drugs to treat many common cancers.
Crispr Therapeutics opened the door to repairing defective genes that cause many maladies such as cystic fibrosis, several types of heart disease, diabetes, and sickle cell disease — to name only a few.
With Crisper’s tools, bad genes can be removed and replaced with genes that function properly. Thanks to Crispr, over the next few years many deadly conditions are expected to join polio, smallpox, and other killers in the dustbins of medical history.
Cancers caused by genetic abnormalities will be more difficult to defeat. In most cancers, there are too many mutations for Crispr’s tools to efficiently eliminate and replace. Neither do our immune systems recognize and attack cancer-causing mutations that are part of our genetic code.
1) However, biochemists recently created a way to identify cancer-causing mutations in our genes – and teach our immune systems to recognize and eliminate them. To do so, oncologists take biopsies of the cancers to locate the specific mutations that cause them.
2) Mutations are then selected that will create the strongest immune responses in the patient.
3) The scientists then use our cell’s mRNA (messenger RNA) to create enough of what the mutations produce for our immune systems to recognize as foreign agents — and attack.
4) After a few weeks, most patients can be cancer free.
The Covid-19 vaccines that were developed recently also use mRNA technology. In this case, mRNA is used to create a flood of coronavirus surface proteins that will trigger an antibody defense by our immune systems.
Most people will then be protected from the disease for at least several months. After that, booster shots may be needed to stimulate the production of more antibodies.
BioNTech pioneered the techniques that use mRNA to create viral vaccines, is BioNTech, that’s based in Mainz, Germany. Because BioNTech is primarily a research organization, it decided to team up with Pfizer to produce and distribute the Covid-19 vaccine in large quantities.
Another innovative company that’s been developing mRNA technology is Moderna (MRNA), that’s based in Cambridge, MA.
Moderna independently developed its own Covid-19 vaccine that stimulates a person’s immune system to produce antibodies against the virus. In addition, Moderna has 13 other products in its development pipeline — particularly for respiratory diseases.
The Pfizer (PFE) partnership with BioNTech that I mentioned earlier is now using mRNA technology to create treatments for several types of cancer.
In addition to its exceptional production and distribution capabilities — Pfizer has the deep pockets needed to fund expensive cancer projects and to bring them to market. Pfizer’s cancer program will take several years to complete, but its profit potential is enormous.
The first stock that I think biotech investors should own is Crispr Therapeutics. Crispr developed the gene editing technology that nearly all drug developers are now using to create many of their most effective products.
The second stock to buy is BioNTech that created the mRNA system that was used to develop the leading Covid-19 vaccine. The company’s mRNA technology is also used to treat many cancers caused by mutated genes.
Lastly, I believe the choice between Moderna, and Pfizer should be based upon how much risk you are willing to accept. Pfizer is a 172 year old pharmaceutical giant with a wide range of successful drugs on the market.
Using BioNTech’s mRNA technology, Pfizer created what may be the most effective Covid-19 vaccine. Many other advances are on the way. Pfizer should be particularly attractive to conservative investors.
Moderna was founded in 2010 and is also focused on producing viral vaccines and cancer treatments using mRNA technology. Moderna is a young but very successful company that should appeal to more aggressive investors.
Whatever biotechnology stocks you may choose, you should expect greater price volatility than is common with other healthcare companies. The key to success is to buy the highest quality biotech companies with technologies that nearly every drug maker uses — and plan to hold them until they reach their potential.
