OPKO and Emergent have both made tremendous stock-market performance, until now, in 2020, in particular in relation to the main indices of the market, in large part because of their efforts COVIDE-19. But which of these stocks are focused on the coronavirus is the best choice?
The case of OPKO Health
OPKO has jumped into the arena COVID-19 at the beginning of the month of march, when his unit Laboratories, BioReference has launched a test COVID-19. Over the following weeks, the company has intensified its efforts COVID-19, the launch of drive-through tests in the State of New York, and then in New Jersey, as well as Detroit and Miami.
At the end of the month of April, OPKO has offered antibody testing COVID-19 — initially in New York. In mid-may, the company has implemented its screening program COVID-19 to help employers make decisions about return to work policy.
But the aim COVID-19 OPKO is not limited to tests. In June, the Food and Drug Administration has given its green light to the company to initiate a phase 2 clinical trial evaluating Rayaldee as a treatment for patients with mild to moderate cases of COVIDE-19. OPKO plans to enrol 166 patients in the study, including patients with state 3 or 4 chronic kidney disease (CKD).
Rayaldee, which is approved for the treatment of secondary hyperparathyroidism in adult patients with CKD of stage 3 or 4, is currently the main engine of growth for the pharmaceutical business of OPKO. However, it could be joined by another promising drug in the not too distant future. OPKO and its partner, Pfizeryou should also expect to file for FDA approval of human growth hormone, long-acting somatrogon in the second half of this year.
About 80% of the total turnover of OPKO, however, comes from its diagnostic activity BioReference. Sales of BioReference fell to a year-to-year in the first quarter due to the pandemic of COVID-19. However, it is probably a temporary problem : the new tests COVIDE-19 of the company are expected to fuel growth in the rest of 2020, and up to the next year.
The case of biosolutions emergent
Emergent Biosolutions has become the manufacturer of vaccines COVID-19. Last week, the Biomedical Advanced Research and Development Authority (BARDA) has issued an order for work under an existing contract with a value of $ 628 million for the production of vaccines COVIDE-19 candidates. The effort is essential in the program of the u.s. government “Warp Speed” to accelerate the development and production of vaccines against the novel coronavirus.
It’s not the federal government, which turns to Emergent. The company has also entered into agreements with Johnson and Johnson, NovavaxAnd Vaxart for the manufacture of vaccines COVIDE-19.
And the u.s. government is not satisfied to associate with Emergent for the manufacture of vaccines. BARDA awarded the company $ 14.5 million in April to advance the development of a therapy derived from the plasma for the treatment of COVIDE-19. The COVIDE-HIG of Emergent is its main candidate COVIDE-19. It uses the plasma donated by patients who have recovered from COVID-19 and have antibodies to the new coronavirus.
The biosolutions emergent have made nearly 38% of its total sales in the first quarter thanks to its spray-nasal Narcan for the treatment of overdoses of opioids. This could be problematic for the company. A district court of the United States ruled earlier this week against Emergent, in favour of the generic manufacturer Teva Pharmaceutical Industriesin a trial in the patent related to the dose of 4 mg of Narcan.
The sales of vaccines against anthrax, the making of contracts, contracts, and grants from the government are other sources of income current key for Emergent. With the future of Narcan in question, the growth of the company is likely to be driven mainly by its programs COVID-19 in the short term.
The best stock of coronavirus
If it had not been for the court decision against against Emergent Biosolutions in the dispute over the patent of Narcan, my point of view would be that the stock of biotechnology is a slam dunk on OPKO Health. Emergent plans to appeal the decision, but there is no way at this stage to know how the story will unfold.
This means that OPKO Health automatically wins ? Lol The company is not as close to the profitability that Emerging – even with the uncertainty Narcan taken into account. And although the unit of BioReference to OPKO has realized admirably the deployment tests COVID-19, she faced a tough competition.
I always think that Emergent BioSolutions deserves the nod as the best stock of coronavirus. It has concluded important agreements on the manufacture of vaccines COVID-19 that should ensure a strong revenue growth over the next year or more. My point of view is that the shares of Emerging — although they have been bombarded this week after the decision of the district Court of the United States — have room to work.