3 buyouts https://www.tipranks.com/news/article/3-biotech-stocks-to-buy-on-rna-revolution-bntx-cvac-arct?utm_source=advfn.com&utm_medium=referral An experience that few want to relive is the COVID-19 crisis. Though the disruptions it imposed may reverberate for years to come, it also sparked a major silver lining: the development and distribution of messenger-RNA-based vaccines. Indeed, advanced biotechnology firms may be able to leverage this innovation to spark additional therapeutics. In particular, patient forward-looking investors may want to consider the following biotech stocks:
During the initial development phase of mRNA vaccines for the SARS-CoV-2 virus, public hesitancy arose due to the “newness” factor of the innovative approach. However, as Johns Hopkins Bloomberg School of Public Health noted, mRNA vaccines actually feature a long history, being first discovered in the early 1960s. By the 1970s, research materialized regarding the process of how mRNA could be delivered into cells.
In this research phase, scientists developed the ability for mRNA – a nucleic acid playing essential roles in coding, decoding, regulation, and expression of genes – to be taken up by the body. However, the issue was that the polymeric molecule would degrade quickly. The innovation that eventually facilitated the distribution of COVID-19 vaccines centered on nanotechnology advances.
As Johns Hopkins explains, scientists discovered a mechanism to use fatty droplets called lipid nanoparticles to wrap around the target mRNA like a bubble, allowing entry into cells. “Once inside the cell, the mRNA message could be translated into proteins, like the spike protein of SARS-CoV-2, and the immune system would then be primed to recognize the foreign protein.”
So profound is the “limitless future” of RNA therapeutics that bioengineers published a report on Frontiers that the concept of “undruggable” conditions may be rendered obsolete.
Per the publication, “We are in the midst of a therapeutic revolution, the likes of which have not been seen since the advent of recombinant protein technology almost 50 years ago in Silicon Valley. Accordingly, we will review recent developments in RNA Therapeutics, and their promise to alter the landscape of the pharmaceutical industry.”
BioNTech
A German biotech firm, BioNTech garnered a massive spotlight when it partnered with pharmaceutical giant Pfizer (NYSE:PFE) to develop Comirnaty, a mRNA-based vaccine for COVID-19. However, with President Joe Biden recently declaring that the pandemic is over, the narrative at first doesn’t seem to favor BioNTech. What’s more, on a year-to-date basis, BNTX hemorrhaged nearly 42%.
Nevertheless, for investors that can withstand volatility, BNTX could be one of the discounted biotech stocks to buy. Crossing the development and distribution finish line as one of the top mRNA pioneers, BioNTech commands an enviable scientific lead. Should another disease outbreak occur, the company has a blueprint to work from. In addition, it can pivot to address long-term conditions, thereby expanding the scope of RNA therapeutics.
To be fair, BioNTech only posted revenue of $3.38 billion for the second quarter of 2022, down 47% from the year-ago period. However, the retained earnings line item blossomed because of the company’s success in helping launch the COVID-19 vaccine, jumping from a moribund loss of $498 million in 2020 to $15.6 billion on a trailing-12-month basis.
Is BNTX Stock a Buy?
Turning to Wall Street, BNTX stock has a Moderate Buy consensus rating based on four Buys, five Holds, and zero Sell ratings. The average BNTX price target is $215.78, implying 60% upside potential.