7investing Lead Advisor Maxx Chatsko's top stock to buy in November 2021 is at the very beginning of an inflection point in its growth trajectory.
November 1, 2021
Make no mistake, the most exciting part of drug development is developing the drugs. Investors get to see companies test new ideas, clinically evaluate novel therapeutic modalities, and potentially bring game-changing treatment options to patients. While a successful phase 3 study is often hailed as the hurdle between the dustbin of history and drug industry glory, that’s not entirely true. A successful late-stage clinical trial is the final bookend in the development process, but companies then need to earn regulatory approval and sell the actual drug product. Commercial operations are not trivial and can derail successful therapeutic compounds.
My November 2021 recommendation is a commercial-stage drug developer that’s laser-focused on building the best commercial infrastructure. There’s no other way for the business to succeed in its noble mission to make biologic drugs more accessible and more affordable. Most importantly for investors, the business expects to launch five new products in the next 24 months that could lead to a significant ramp in revenue.
A commercial-stage drug developer that, like me, is just misunderstood.
Hey everyone, I’m 7investing Lead Advisor Maxx Chatsko. I cover biotechnology and renewable energy here at 7investing, where we empower you to invest in your future by giving you our seven best stock market opportunities each and every month, each backed by the domain competence of one of our lead advisors.
Investors often hear the word “monopoly” when it comes to drug development. Once a product earns approval and is protected by patents, investors assume that relatively little can be done to compete with it directly. This assumes that drug developers win by being the only game in town.
But that’s not quite accurate. Consider the anti-PD-1 drug Keytruda. It will become the best-selling drug in the world by 2023, but there are six other anti-PD-1 drugs on the market today. All are novel, all are protected by patents, and there’s no generic competition. In other words, Keytruda doesn’t win and dominate this market because it’s the only game in town, but because it’s the best game in town.
This is a very important concept for investors to understand. When it comes to emerging therapeutic modalities, especially in genetic medicines — such as gene editing, mRNA, or protein degraders — there will almost never be a single game in town. The winners will win by being the best game in town.
My recommendation for November 2021 embodies this concept perfectly. It expects up to five new drug products to launch in the next few years, which suggests it’s at the very beginning of an important inflection point for its growth.
If you want to read my full research report, then you know what to do — go to 7investing.com. And remember, it’s never too early or too late to start investing in your future.