Biotech stocks have been all the rage in 2020 as a number of companies have aspired to correct the COVID-19 pandemic.
But then, biotech and biopharmaceutical companies been all the rage for much of the past few decades.
The trend started within just a couple of months 40 years ago this fall. StatNews, which covers the industry, cites four events within two months as vital:
- First came 1980’s Nobel Prize for Chemistry. Half went to Paul Berg at Stanford for his then-controversial work on recombinant deoxyribonucleic acid (DNA). The prize effectively conferred a blessing.
- Second was the initial public offering of Genentech, the first true biotech stock, which proved there was money to be made int his field.
- Then came the Stevenson-Wydler Innovation Act, encouraging federal labs to share and promote research with commercial potential.
- Finally came U.S. Patent No. 4237224, given to Stanford, which developed a basic method for recombining genes.
Modern biotech begins with DNA, first discovered in the 1950s, and the chemical interactions it induces to create life. Biochemists today work to design drugs that inhibit or activate enzymes driving biological processes.
Many of the largest drug companies are now being reorganized around these opportunities, whether through internal research, buyouts and/or partnerships. Giant, pure biotech stocks have emerged to pursue them, too. Scientists with promising research also have launched companies sometimes worth billions of dollars before they even have a treatment on the market.
Here, we’ll look at 14 of the best biotech and biopharma stocks to buy for 2021. We’ll divide these opportunities into three buckets: 1.) Big Pharma stocks that are undergoing (or have undergone) shifts to become more biotech-minded; 2.) large pure-play biotech companies; and 3.) “emerging” biotech stocks, some of which have a specific focus on COVID-19.