June 10, 2016
By Mark Terry, BioSpace.com Breaking News Staff
Although certainly not limited to millennials, the generation that graduated from high school around 2000, investing in stocks long-term is generally considered a good strategy. Sean Williams, writing for The Motley Fool, looks at three life science companies worth investing in over the long haul.
Bristol-Myers Squibb is his first pick. Williams argues that Bristol-Myers’ current emphasis on cancer and blood clotting makes it particularly intriguing. The company’s Opdivo, a PD-1 inhibitor, is on the forefront of the current immuno-oncology treatments. The drug is approved to treat some types of melanoma, lung and kidney cancer. It is also being evaluated in numerous combination studies across dozens of tumor types.
Cancer cells express molecules that allow them to hide from the body’s immune system. Opdivo works to suppress those molecules, making it easier for the body to fight cancer.
Williams writes, “Needless to say, there are ample opportunities for Opdivo to expand its uses going forward—and make an honest run at $10 billion in peak annual sales. For context, it’s probably on pace for around $3 billion in sales in 2016 after turning in $704 million in sales in Q1.”
And if that isn’t enough, Bristol-Myers, with Pfizer , markets Eliquis, a blood thinner, which is projected to hit $3 billion in sales this year.
Shifting away from drugs, Williams recommends Intuitive Surgical , which makes and markets surgical robots, the da Vinci products. “At the moment,” Williams writes, “its surgical robotics account for more than 80 percent of prostate cancer and malignant hysterectomy surgeries, and the company is angling to grow its sub-10-percent market share in the colorectal, ventral hernia, and thoracic surgery markets in the coming years.”
In December 2015, Google ’s Verily and Johnson & Johnson announced a collaboration to create an independent surgical solutions company, Verb Surgical Inc. Verb claims that how it will compete with Intuitive has to do with making its robots smaller, cheaper, and allow the surgeon to work closer to the patient.
That remains to be seen, given Intuitive’s hold on the market and willingness to innovate. Williams writes, “With a niche offering and little in the way of viable competition, this cutting-edge robotics giant could be worth a look by millennials.”
And finally, Myriad Genetics , best known for its BRCA-1 and -2 breast cancer tests, its BRACAnalysis. After developing those tests, the company had a lock on the gene patents, but a Supreme Court decision in 2015 allowed other companies to offer the same tests, although Myriad’s databases regarding the extensive mutations is the most advanced in the industry.
But Myriad isn’t a one-test company. It also is marketing Prolaris and Vectra DNA. Prolaris helps physicians identify the aggressiveness of prostate cancer tumors. Vectra DA is a blood test that helps patients with rheumatoid arthritis evaluate future joint damage risk.
Williams writes, “Myriad finds itself on the cutting edge of personalized medicine, and that’s a good place to be if you’re a long-term investor looking for great stocks to buy.”
Bristol-Myers Squib is currently trading for $72.23.
Intuitive Surgical is trading for $641.91.
Myriad Genetics is trading for $33.06.
