3 cancer treatment stocks to buy now
There has been so much progress in the treatment of cancer over the past 10 years that it might make your head spin. Researchers have identified new ways to fight cancer, as well as new ways to diagnose cancer more effectively.
Nearly $ 150 billion will likely be spent on cancer drugs this year. This creates a lot of opportunities for investors. But which cancer treatment actions are the top choices right now? Here is why I think that organic blue bird (NASDAQ: BLUE), Bristol Myers Squibb (NYSE: BMY), and Intuitive surgery (NASDAQ: ISRG) above all stand out.
I recently included Bluebird on my list of three best biotech stocks to buy for the next decade. This list was admittedly exaggerated as it is impossible to accurately predict how stocks will perform in the future. This is especially true for biotechnology stocks.
However, there are several reasons why Bluebird could fly much higher. On the one hand, the company recently launched its first product, Zynteglo, in Germany. It will take some time for revenues from gene therapy, which targets transfusion-dependent beta-thalassemia, to increase. But Bluebird plans to introduce Zynteglo to other key European markets later this year. It also plans to file a dossier for approval in the United States in the first half of 2020.
Zynteglo is not a cancer treatment, but Bluebird has a few cell therapies that are. Company partner Bristol-Myers Squibb is expected to file FDA approval for ide-cel for the treatment of multiple myeloma, a type of cancer of the blood, this year. Bluebird and BMS are also collaborating on another promising cell therapy for multiple myeloma, bb21217. I think both drugs should become blockbusters if they are approved.
In addition, Bluebird has another rare disease drug in advanced testing. The biotech is expected to apply for approval in the United States and Europe for Lenti-D in the treatment of cerebral adrenoleukodystrophy by the end of 2020.
2. Bristol-Myers Squibb
Bluebird’s partner Bristol-Myers Squibb is one of the largest manufacturers of cancer drugs on the planet. The EvaluatePharma market study predicts that the company’s cancer immunotherapy will be the N ° 4 of the best-selling drugs in the world in the coming years. BMS has a rising star with its multiple myeloma drug Empliciti. And that’s just the tip of the iceberg for BMS.
With its acquisition of Celgene at the end of 2019, BMS now has several other successful cancer drugs in its line. Revlimid is the biggest money generator BMS has picked up in the business. The company is now also claiming multiple myeloma drug Pomalyst and solid tumor drug Abraxane.
Additionally, BMS’s pipeline is chock-full of potential blockbusters. The company hopes to get FDA approval for liso-cel for the treatment of relapsed or refractory large B-cell lymphoma by August 17, 2020. We previously mentioned Bluebird’s ide-cel, which BMS authorized.
Don’t forget about BMS drugs outside of the cancer realm. The anticoagulant Eliquis is expected to become the best-selling drug in the world by 2024. Orencia, the drug against autoimmune diseases, continues to work very well. BMS is also hoping to gain FDA approval for Celgene’s ozanimod for the treatment of multiple sclerosis next month.
3. Intuitive surgery
You might be a little surprised to see Intuitive Surgical included with two of the best cancer treatment titles to buy right now. But Intuitive’s da Vinci robotic surgical system is widely used in the treatment of prostate cancer, with 138,000 urologic procedures performed with the system in the United States alone last year.
To be transparent, however, the importance of Intuitive in the treatment of prostate cancer is not the main reason I included this stock. What I like most about Intuitive Surgical is its overall business model. The company basically uses a modern take on the old razor and blade approach. He earns money by selling robotic surgical systems, but does a lot more by selling replacement instruments, accessories and services.
Intuitive Surgical’s 2019 recurring revenue amounted to 72% of total revenue. This figure is expected to continue to increase as da Vinci’s install base grows and customers use the system for more procedures. Intuitive also rents more robotic surgical systems than ever before, which will further increase recurring revenue.
Other companies hope to challenge Intuitive Surgical’s dominance in the robotic surgical systems market. My view, however, is that this competition will be a good thing for Intuitive by expanding the market. I also believe that Intuitive Surgical’s huge head start in developing an ecosystem that supports its technology gives it a solid foundation.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.