RedHill Biopharma Ltd (RDHL)

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4 Top COVID Stocks to Buy in February

Are you a high-risk stock picker or cautious investor? No matter your answer, there's a stock for you on this list.

https://finance.yahoo.com/m/e3666eab-514e-36fb-bd3e-f7b8ba89b186/4-top-covid-stocks-to-buy-in.html?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article&yptr=yahoo

(TMFAdriaCimino)

Feb 11, 2021 at 6:55AM
Author Bio
In the early days of the COVID-19 pandemic, coronavirus-themed stock investing was best left to investors with an appetite for higher risk. Vaccines were early stage and not only represented opportunity for big stock market rewards, but also for big share declines. But the situation has evolved. Low-risk investors can opt for coronavirus companies with late-stage programs and newly marketed products. And there still are plenty of earlier-stage companies to suit the needs of high-risk and growth investors.

Here, I'll talk about two stocks cautious investors may consider buying this month -- and two stocks aggressive investors may consider. There's something for everyone. Let's start with our lower-risk options.

Redhill
Redhill Biopharma (NASDAQ:RDHL) is one of my favorite options for investors with a stomach for risk. That's because the company's coronavirus treatment candidate is still in phase 2 trials. And right now, the outcome of this candidate's clinical studies is the biggest catalyst for the stock.

So far, phase 2 data have been encouraging. Redhill reported that opaganib helped the breathing of hospitalized COVID-19 patients suffering from pneumonia. More than 52% of patients given the investigational treatment no longer needed oxygen support by day 14. That's compared to only 22% in the control group.

What's most interesting about opaganib is its mode of action in the human body. It targets part of a cell involved in viral replication instead of targeting the virus itself. That means it may be victorious against the virus even as it mutates. This is a significant plus considering recent concerns over new coronavirus strains.

So far, the FDA has only approved one treatment for coronavirus -- Veklury (also known as remdesivir) by Gilead Sciences (NASDAQ:GILD). The regulatory agency has granted EUAs to a handful of others, including antibody treatments by Regeneron Pharmaceuticals (NASDAQ:REGN) and Eli Lilly (NYSE:LLY). And companies haven't yet brought forth one major therapy that can cure a broad range of coronavirus patients. This means there is plenty of room for newcomers -- especially a newcomer with solid efficacy data from late-stage trials. Veklury generated more than $1 billion in sales for Gilead in the most recent quarter. Of course, therapies won't all be priced the same. But considering the need for treatment options, it's clear that an efficacious treatment could become a blockbuster.

What's next for Redhill? A readout from the phase 2/3 trial of opaganib in severe COVID pneumonia is expected in the first quarter of this year.