While the last two major global pandemics were more than 100 years apart, a few international agencies warn of the increased potential for more frequent pandemics.
This is admittedly a concerning and uncomfortable thought, considering the severe societal damage that occurred as a result of the Covid-19 pandemic.
That being said, the opportunity always exists for biotech stocks during times of health crisis.
Especially vaccines and prophylactic measures, which could turn lucrative for investors, due to investing in early on a company whose products become critical to a worldwide solution.
To determine the potential of these companies’ treatments, we will look at their scalability, and the disease they’re intended to address. As such here are three biotech stocks to watch for the future of global health.
Moderna (MRNA)
Moderna (NASDAQ:MRNA) is the vaccine producer focused on using the mRNA technology. Yet, what is exceptionally exciting about this technology is how readily it can be applied to other types of respiratory viruses beyond the one that caused the Covid-19 pandemic.
That’s because mRNA technology allows for specific protein targeting for the immune system. This means Moderna can take proteins like the spike proteins on the outside of a virus.
As a result, Moderna’s mRNA vaccine presents as exceptionally versatile option and can quickly adapt to whatever the next pandemic might be. This gives this mRNA stock a leg up, should another health crisis occur, warranting rapid development of vaccines like in 2020.
As such, it’s likely one of the best biotech stocks to buy if you’re betting on the next health crisis.
Eli Lilly (LLY)
A current favorite to help address this pandemic is Eli Lilly (NYSE:LLY) whose revenues have seen healthy year-over-year growth.
It may be difficult to conceptualize, but one of the most dangerous pandemics ravaging the developed world today is obesity. While this disease may not be communicable like the usual culprits of epidemiology, it poses a grave risk to the future health and morbidity.
Two of its biggest drivers of this revenue growth are Mounjaro, which treats diabetes, and Zepbound which supports weight loss. Now as the drugs gain market exposure, LLY’s stock value is likely to keep growing alongside increasing revenues.
As a result, LLY will likely continue to trade with stability as the ongoing obesity pandemic worsens. This means the company represents one of the best biotech stocks to buy for the coming decade.
Moreover, as the years go by, time will tell if its drug solutions for the struggle with over-nourishment will be sustainable.
Merck (MRK)
One of America’s oldest and longest-standing pharmaceutical companies, Merck (NYSE:MRK) has been developing and manufacturing prescription, medicines, vaccines, biological therapies and animal health products for over 100 years.
With this history of development also comes a wealth of proprietary knowledge and information regarding the development of new drugs.
One of its market strengths would emerge if the next pandemic, instead of being a viral one, is bacterial. That’s because the company is still one of the world’s leading producers of antibiotics alongside its other prescription medications.
Moreover, its sheer size with nearly 63,000 people employed worldwide means that it can reach several different markets and cultures through its drug development. It also focuses heavily on research and development of medicines and vaccines that aim at being more accessible to low- and-middle-income countries.
This development focus makes it one of the best biotech stocks to buy as it ensures that its treatments for a potential future outbreak will be affordable for more patients than its competition.
On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
