Profiting From the Biotech Boom

Written by Jason Simpkins
Posted May 14, 2021

Make no mistake, we're entering a golden age of pharmaceutical development. 

From mRNA to monoclonal antibodies, modern medical science is scoring the biggest breakthroughs since the advent of penicillin.

And whereas new medicine could often take 10 years to commercialize, complex avant-garde coronavirus vaccines charged through pipelines at record speed.

Indeed, we've finally seen how quickly things can move, and what can truly be achieved when the government and private sector collaborate on a common, urgent goal. 

The results have been a boon for humanity and investors.

Pfizer (NYSE: PFE) dug itself out of the COVID collapse, climbing 45% on the strength of its vaccine development. 

The company's success culminated in an massive earnings beat last week.

Pfizer reported earnings of $0.93 per share for the first quarter — a 47% surge from last year that easily topped the FactSet consensus estimate of $0.77 a share. Revenue rose 42% to $14.6 billion. 

More importantly, though, the company vastly increased its projected revenue from its COVID vaccine, saying it now expects $26 billion in sales this year, up from the $15 billion it had projected in February. It also expects to have the capacity to manufacture 3 billion doses of the vaccine in 2022, and is negotiating contracts with governments for supply in 2022 and beyond.

Pfizer Covid Timeline

The company has a plethora of other remedies in the works as well.

As a result, Pfizer raised its full year guidance, and is now projecting between $70.5 billion to $72.5 billion in annual revenue and net earnings of $3.55 to $3.65 per share. 

BioNTech (NASDAQ: BNTX), Pfizer's partner on the COVID vaccine, has done even better for itself, having already surged 114% this year.

It also beat earnings estimates with eye-popping growth figures.

Earnings per share rose 2,134.62% over the past year to $5.29, while revenue jumped 7,995.18% to $2.5 billion.

Astonishing when you consider the company was losing money a year ago.

But now the company has signed contracts to deliver 1.8 billion doses of its COVID vaccine in 2021. That would generate more than $15 billion in sales, which is well ahead of BioNTech stock analysts' forecast for $10.5 billion in full-year sales.

Better still, BioNTech believes its vaccine will work against India’s vicious “double mutant” strain of COVID. The company has tested its two-dose vaccine, which is currently not available in India, against similar “double mutants” and researchers are confident their shot will still be protective based on the data.

And, as with Pfizer, BioNTech raised its guidance and pointed to other promising initiatives. 

It's expanding with a new mRNA manufacturing plant in Singapore that will manufacture hundreds of millions of doses of mRNA-based vaccines each year. 

Besides its mRNA-based vaccines, BioNTech also has a pipeline of cancer programs and infectious disease programs.

Biontech PipelineSo, again, if you think companies like Pfizer and BioNTech will recede along with the threat of COVID, think again. 

And on top of that there's a host of other companies joining them in this bold, new 21st-century biotech boom.

Of course, investing in the sector isn't always as easy as singling out stocks like these.

It takes great attention to detail, the ability to monitor drug development, and a full understanding of the catalysts that propel biotech stocks to big-time gains. 

That's the only way to truly maximize your profit — not just ride some coattails after the fact.

Fortunately my friend, colleague, and renowned biotech expert Keith Kohl has developed a simple system that can easily hand even the most novice biotech investor double- and triple-digit profits. 

In fact, if you're capable of reading a calendar, then guess what?

You're qualified. 

It's that easy to isolate life-changing gains in this seemingly byzantine sector.

And I can prove it. 

Keith is hosting a special, one-time training event on May 20 (next Thursday) in which he'll provide all of the details. 

And it's completely FREE.

You literally have nothing to lose, and everything to gain. 

You're not going to find a better breakdown of the biotech sector anywhere. And the profit potential is enormous.

So check out the details here.

Fight on,

Jason Simpkins Signature

Jason Simpkins

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Jason Simpkins is Assistant Managing Editor of the Outsider Club and Investment Director of Wall Street's Proving Ground, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's page. 

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