The research office expects the strong performance of biotech stocks to continue in 2021 and cites a French company representative of the sector among its favorite stocks.
After a strong year in 2020 for European health and biotech stocks (including at the tricolor level, in which investors have never been more interested), the sector should continue its performance in 2021. This is the conviction of Jefferies’ biotech team (four analysts, including three PhDs and one CFA, or financial analyst), which this week compiled a list of its favorite stocks.
If you want to find more details about the biotech companies in the spotlight and to read other important news in the sector, download the Born2Invest mobile app. Our companion app brings you the latest financial news in the world so you can stay on top of the market.
The optimism of the research department is based on four main factors
1) Reforms affecting the U.S. health care sector will surely be a major focus of the new administration. But in the immediate future, the fight against Covid-19 will remain the top priority, and the primary objective will be to expand/improve the coverage of the population. On the price of drugs, Jefferies believes rather in measures taken, not in a drastic reform to the point that would discourage innovation and research.
2) A regulatory context characterized by a pragmatic approach in terms of risk/benefit analysis and a desire to accelerate the availability of the most effective treatments to patients should lead to the approval of new drugs representing therapeutic breakthroughs, notably based on cell and gene therapies.
3) Consolidation of the sector in the form of complementary acquisitions (small players by larger ones) with the appropriate level of premiums, rather than through mega-mergers of already large healthcare players.
4) Reasonable valuations in Europe, especially compared to US peers, but also compared to other growth sectors, with most stocks still trading below the net present value calculated by Jefferies.
The biotech companies in the spotlight
“In the end, we believe that the real clinical benefits will always be rewarded and we expect the industry to continue to be driven by continuous innovation from small and mid caps,” summarized the research department. In this context, Jefferies prefers biotech companies with a portfolio of innovative candidates based on new technologies, capable of positioning themselves favorably in increasingly competitive markets. And among its preferred values is a tricolor biotech. “Our best choices are Lonza, Genmab, PureTech, Nanobiotix and Acacia,” notes Jefferies.
Its analysts advise in particular the purchase of the French nanomedicine pioneer. “We believe that enthusiasm for the NBTXR3 radio-enhancer will increase as a result of new data in leading indications, plus the potential to start a Phase 3 trial in head and neck cancer in the first half of the year. As a single injection treatment, fully compatible with standard radiotherapy protocols, NBTXR3 could be used in nearly 60% of cancers treated with X-rays,” the research department estimates. Its target for Nanobiotix is set at 20 euros.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in BFM BOURSE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Five Impact Investment Projects around the World
Impact investing gives investors the opportunity not only to earn a return on their money but also to have a...
HoMu Health Ventures Launches in Reproductive Medicine
HoMu Health Ventures has its own capital to financially support emerging companies in their pre-seed and seed phase. In this...
Transitory Inflation Debate
the US economy is about to go over a massive fiscal cliff; and the monetary cliff is just as deep....
Due to Demand Concerns, the Rice Prices were Lower Last Week
Rice prices were lower for the week in good volume trading on demand concerns. It looked like speculators were the...
Genomcore Finalizes its Entry into the United Kingdom after Increasing its Turnover by 73% in 2021
Genomcore has recently entered the market in the United Kingdom. In 2020, the company had a turnover of $912,000 (€750,000),...
Featured6 days ago
Crowdfunding for the Creation of a Legal Defense Fund for Wind Power Projects Completed
Crypto5 days ago
Stablecoins: The New Kid On The Crypto Block
Africa6 days ago
The Valorization of Technologies, Inventions, and Innovations in Burkina Faso
Business6 days ago
Painting Startups By Numbers Part 1: An Overview Of Metrics