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.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [uMobix Affiliate Program Review]
This week, we're covering everything from hustle culture to spying on kids, making this affiliate digest look like it has...
Stanford University Returns Millions from FTX
Between November 2021 and May 2022, Bankman directed donations of more than €5.5 million from FTX Group to Stanford University....
Biova Project Launched an Equity Crowdfunding Campaign on Mamacrowd
Biova Project makes deals with players in large-scale distribution and production to recover, store, and transform unsold food, or food...
Novo Nordisk Plans to Open a Tech Headquarters in Spain
Novo Nordisk increased its profit by 42.5% in the first half of 2023, reaching 39,242 million Danish crowns (€5.26 million)....
Immorente Invest Maintains its Financial Stability
Although the occupancy rate has fallen from 92% to 90.2% compared with the end of 2022, the company expects this...
Fintech1 week ago
Fintech Company Cleafy Raises €10 million
Business2 weeks ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [1xBet Partners Review]
Crypto4 days ago
Ripple’s IPO Plans – What Do They Mean for XRP?
Biotech1 week ago
Murcia Puts Out to Tender for €500,000 the Works of the Clinical Trials Unit in Arrixaca