Many biotech stocks have fallen quite a bit this year. The good news is that this makes the more promising ones more attractive. In this Motley Fool Live video recorded on Dec. 8, Motley Fool contributors Keith Speights and Brian Orelli talk about three biotechs that are too cheap to ignore.
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Keith Speights: We've talked about this before, but 2021 hasn't been exactly a great year overall for biotech stocks, so which biotech stocks, in particular, do you think look too cheap to ignore right now?
Brian Orelli: I will put Novocure (NVCR -0.89%) as one of the ones on my list, and the ticker there is N-V-C-R. It's down substantially, on basically no news. It's waiting for data from a pivotal study in lung cancer that's expected at the end of next year, and so I think this might just be a case of short-term thinking, and people don't want to own it when there is no binary events for basically the whole year potentially.
The lung cancer market is so much bigger than the glioblastoma market, where it's currently approved, that I think that the potential growth is so huge into 2023 and 2024. I think it's just a steal at this price. I bought it twice or three times at higher prices than right now, and I just think it's like such a great deal right now.
Twist Bioscience (TWST 1.07%), the ticker there is T-W-S-T, and they've made a lot of progress. The company has a cheap way of making DNA. It sells its DNA directly to researchers that want to use it. But it's also using it to make antibody libraries and helping companies discover drugs that way. And then it's also developing DNA on a chip to be able to store data through the DNA for long-term storage. That's, I think, a big market that doesn't have any players right now and so we would have the market potentially all to itself, and I think that's a big added bonus for Twist Biosciences.
Then if you're looking for something that's maybe a little bigger, Vertex Pharmaceuticals (VRTX -0.76%), V-R-T-X, is a good option. I own that one, and I also own Twist as well. It has tons of cash coming in from its cystic fibrosis programs, and those are allowing it to fund its research and development, both in-house and in-licensing and through partnerships.
It's released early data recently for a couple of programs, one in a kidney disease and one in diabetes. They are still early stage. But I think that they have a lot of potential to be the next growth drivers for Vertex Pharmaceuticals. Then, of course, it has its partnership with CRISPR Therapeutics (CRSP -3.45%). That drug will be in the clinic or on the market probably fairly soon in the next year or two.
