Investing in the biotechnology industry can be difficult because of how volatile biotech stocks often are. News stories based on drug research, FDA approvals, and trial results can send shares soaring or plummeting in just days.
But the sector does offer solid long-term moneymakers if you know where to look...That's why we've found the best long-term stocks to buy today in biotech.
These stocks allow you to tap into biotech's amazing profit potential as you grow your wealth steadily - without buying and selling shares frequently.
Here are the three best long-term stocks to buy in the biotech sector now...
Trillium Therapeutics Inc. (Nasdaq: TRIL) is up 115% in 2015 and still has plenty of room to run. The company is at the forefront of a revolutionary treatment that could hold the key to curing various types of cancer.
Here's what happens. Cancer cells produce a protein called CD47 that camouflages them from the body's immune system. That's why scientists are developing CD47 inhibitors to disarm cancer cells.
So far, CD47 inhibitor treatments have focused on blood cancers. But now scientists are developing them for other types of cancers.
"This approach to fighting blood cancers is extremely promising, but it's not the end of the story," Money Morning Biotech Investing Specialist Ernie Tremblay said. "As it turns out, CD47 blockade may be a treatment that works against all cancers - there are more than 200 variations - because all malignant tumors, no matter the type, express CD47 for survival."
"If CD47 blockade works as well as the science predicts it should, TRIL's earning potential will be unlimited," Tremblay said.
TRIL stock will see short-term volatility, with a market cap of just $136 million. But the company's long-term potential is undeniable.
Shares trade around $19.50 right now and are up 40% in the last six months.
Continue reading for two more of the best long-term stocks to buy now...
Neogen Corp. (Nasdaq: NEOG) is a food-allergy biotech firm that has climbed 15% year to date. Neogen reported Q2 earnings in July and reported a record high for both earnings and revenue.
The market for Neogen's products is expanding at a fast rate.
According to Food Allergy Research & Education Inc. (FARE), more than 15 million Americans suffer from food allergies. In Europe, there are more than 17 million people who are affected.
The number of food allergies in children soared 50% between 1997 and 2011, according to the U.S. Centers for Disease Control and Prevention.
Neogen develops a number of products for food and animal safety, including diagnostic test kits used to test bacteria, sanitation, and levels of allergens. The company's kits provide "fast-test" results, which are a considerable upgrade from typical microbiology tests that have to be sent back to labs for analysis.
"Neogen is one of the very best ways to play food safety and agriculture tech," Money Morning Defense & Tech Specialist Michael A. Robinson said. "And don't underestimate the importance of that second item. The small-cap firm ensures the safety of food and animal products, which is pretty much the entire agriculture ecosystem."
The stock was first recommended by Money Morning on April 22, 2014. Since then, it has delivered a gain of 31.3%.
Second Sight Medical Products Inc. (Nasdaq: EYES) is a medical device company that has developed the world's first bionic eye approved by both the U.S. Food and Drug Administration and the European Union. It's called the Argus II Retinal Prosthesis System.
Argus II bypasses damaged eye cells via interplay between a miniature camera, a patient-worn visual processing unit (VPU), and an implant in the eye. The camera is housed in the patient's glasses and passes an image to the VPU. The VPU translates it into a set of instructions that are then transmitted, via the camera, to an antenna in the implant.
From there, the implant follows the instructions by sending certain electrical impulses to remaining healthy photoreceptors in the eye. They then pass along the message through the optic nerve to be decoded as an image in the brain.
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Roughly 1.5 million people worldwide suffer from retinitis pigmentosa (RP) and 2 million suffer from wet macular degeneration (WMD). The Argus II helps patients with RP now, and the company is working to help those with WMD in the future.
Cost for one system is about $150,000, excluding surgery and the cost of learning how to use the system.
Even fitting 10% of those affected by RP and WMD would result in more than $18.3 billion spent on Argus II products.
EYES stock has gained 22.5% in 2015 and currently trades near $12.50 per share.
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