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3 cutting-edge healthcare stocks that can pay off big

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Health care costs in America and around the world are expected to rise for the foreseeable future. All thanks to an aging population and the hope that healthcare companies will be able to cure more of our diseases. Companies that can break into new markets by curing new diseases should make the most of the coming health care boom. Which is great news for healthcare stocks. In fact, companies like CRISPR therapeutics (NASDAQ:CRSP) must show that their new technology is safe, effective and can be used to treat several different diseases.

Companies like Accuracy (NASDAQ:ARAY) need to show their growth by putting their treatments in front of more patients. And companies like Illuminated (NASDAQ:ILMN) rely on every other company in the world to remember that genetics is at the root of many of our most difficult diseases. And if these companies can prove their case, they can all bring big returns to investors.

CRSPCRISPR therapeutics$45.74

CRISPR Therapeutics (CRSP)

GENE stock. a stylized image of a doctor touching a medical forceps a DNA molecule

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First on this list of healthcare stocks is CRISPR therapeutics (NASDAQ:CRSP), which is pursuing a trillion-dollar genomics revolution. The company is currently using a technology called CRISPR/Cas to modify the DNA of a patient’s cell, which could cure them of a genetic disease. CRISPR has partnered with Vertex Pharmaceuticals (NASDAQ:VRTX) to produce CTX-001, a drug regimen to treat sickle cell disease and beta-thalassemia.

For example, sickle cell disease and beta-thalassemia are common targets for CRISPR companies because they are blood diseases. This means you can draw the patient’s blood, treat it in the lab with the CRISPR/Cas drug, and then give the treated blood back to the patient. This new blood will then cure the patient of the disease by producing new red blood cells.

The clinical trial for CTX-001 is scheduled to end in August 2024, and these results will be very important for the future of CRISPR. But just as important will be the new research that continues to come out about delivering CRISPR drugs to patients. Not all diseases can be treated by removing part of the patient and then giving it back. CRISPR investors should also keep abreast of new scientific developments in drug delivery systems. These new delivery systems will be needed for CRISPR Therapeutics to realize its full potential. CRISPR’s 2022 earnings report shows a burn rate that should keep them afloat for many years to come, so an investor can afford to be patient. And if CRISPR succeeds, it could pay off big, being the centerpiece of one of the biggest markets in history.

Accuracy (ARAY)

DNA strand and cancer cell oncology research concept 3D rendering. LIXT Stock

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Next on our list of hot healthcare stocks is Accuracy (NASDAQ:ARAY), a medical device company using robotic radiation therapy to treat cancer. The company owns CyberKnife, a robot that shoots beams of radiation to destroy cancer cells. Cyberknife is used in a number of medical centers and continues to be studied for new applications. This is an innovative treatment option that may become more widely used in the future.

Accuray is a small company with big dreams. If CyberKnife can prove superior to other cancer treatments, it may become the cancer treatment of the future. This could lead to significant growth for Accuray. Moreover, CyberKnife can not only be used for cancer treatment, but also for non-cancer radiation therapy, thereby expanding its potential market. A number of scientific journal articles give positive mentions to CyberKnife. But despite this, Accuray’s earnings showed little growth, which kept its share price low. Accuray has managed to sell its machines, but not enough and they are not used everywhere. Accuray needs growth opportunities. He must apply radiotherapy for new conditions or update his machines to sell more. Failure to grow could keep the business stuck in the doldrums forever.

Accuray could be profitable. But standing still in biotech means falling behind, and cutting back on research would mean being overtaken by other companies. Accuray’s lack of revenue is not fatal, but it will need to show growth before investors can really trust it.

Illumina (ILMN)

3 cutting-edge healthcare stocks that can pay off big

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There are also burning health actions like Illuminated (NASDAQ:ILMN), a harbinger of the DNA revolution in healthcare. While the other companies on this list deal with diseases, Illumina is one company you’ll want to buy if you’re betting on the whole healthcare industry. Even 20 years after the completion of the Human Genome Project, scientists are still discovering new ways our DNA affects our health. As a leader in genetics and genomics, Illumina has positioned itself to take advantage of new opportunities presented by new science.

Illumina manufactures tools and consumables for reading DNA and RNA. It has a lot of competition in this space, but it stands tall with its ultra-high accuracy readings compared to its competitors. Other companies specialize in reading long stretches of DNA but have lower accuracy. Illumina specializes in reading short segments of DNA, but with very high precision.

It may seem like Illumina is missing out on a market, but in many cases Illumina’s shorter readings are sufficient. Meanwhile, their greater accuracy gives them a bounty. You can always use a technique like shotgun sequencing to split long segments of DNA into shorter segments, read them, and then put them back together. This means that there are very few instances where Illumina’s tools aren’t right for a given job.

As of the date of publication, John Blankenhorn held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

John Blankenhorn is a neuroscientist at Emory University. He has significant experience in biochemistry, biotechnology and pharmaceutical research.


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