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The top biotech stocks in June have all returned a minimum of 35% this month. One has even shot up over 100% in just one month. And while these returns are tempting, we have an even better biotech profit play for you today.
Here is a list of the top moving biotech stocks this month...
|Company||Monthly Performance||Stock Price|
|22nd Century Group Inc. (NYSEMKT: XXII)||35.3%||$1.76|
|Synthetic Biologics Inc. (NYSEMKT: SYN)||35.6%||$0.69|
|Mannkind Corp. (Nasdaq: MNKD)||40.0%||$1.56|
|Galmed Pharmaceuticals Ltd. (Nasdaq: GLMD)||42.4%||$6.92|
|Dynavax Technologies Corp. (Nasdaq: DVAX)||48.2%||$8.35|
|Omeros Corp. (Nasdaq: OMER)||49.1%||$24.27|
|Loxo Oncology Inc. (Nasdaq: LOXO)||56.9%||$71.18|
|Clovis Oncology Inc. (Nasdaq: CLVS)||60.9%||$88.80|
|Nantkwest Inc. (Nasdaq: NK)||88.8%||$7.42|
|Puma Biotechnology Inc. (Nasdaq: PBYI)||108.8%||$80.85|
While some of these monthly gains are spectacular, we don't recommend any of these stocks right now. Two of these stocks are still down for the year, Mannkind (down 51%) and Synthetic Biologics (down 4.4%).
Medical Miracle: On June 23, a small lab plans to announce a breakthrough treatment for the deadliest disease known to man - and it could deliver a windfall for investors who get in now. Read more...
Additionally, three of the top performing biotech stocks this month are trading below the $5 threshold to be considered penny stocks, while three more are just above that mark. Generally speaking, we don't recommend penny stocks because the profit potential is not usually worth the risk for retail investors.
Most of the biotech stocks listed above are also highly volatile, with four of them having a beta above 2.5. That means that they are two and a half times more volatile than the broader market, which has a benchmark beta of 1. In contrast, our profit play today has a beta of .76, meaning it is less volatile than the market.
Finally, many of these companies have low average trading volume. A low trading volume will make it hard to get into or out of a trade at your target price. And four of these companies have a trading volume of less than one million per day. Galmed has an average trading volume of only 37,172 per day.
Today, we're bringing you one of Money Morning Executive Editor Bill Patalon's top biotech stocks right now. He has spent decades following biotech stocks, and he sees two trends setting this one company up for huge profits. Those trends are an industry shift to non-opioid pain killers and legalization of medical marijuana.
"[This biotech stock] has big upside because it's trying (and, so far, succeeding with flying colors) to work at the 'convergence' of those two powerful trends," said Patalon.
The upside is so big that analysts are predicting a potential gain of over 100% this year...
Our Top Biotech Stock Pick Is Already Up Nearly 40% This Year
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Our recommendation today is Insys Therapeutics Inc. (Nasdaq: INSY), which is already up 37.8% so far this year. The Dow, on the other hand, is up only 8.6% year to date. And these market-beating gains are expected to continue with the new drug, Syndros, set to hit the market in August.
Syndros is a cannabis-derived drug approved to treat chemotherapy-induced nausea and vomiting in cancer patients. This drug has a huge potential market with 15 million cancer patients in the United States right now, according to the National Cancer Institute.
"And with medical marijuana research accelerating, it's highly likely other indications will be found for drugs like Syndros," said Patalon.
When Patalon talks about other indications for a drug, he is referring to the drug's "off-label" uses that are not FDA approved but have proven effective. In the case of Syndros, pain management is likely to be an off-label use. Dronabinol, the active ingredient in Syndros, has been proven effective to treat pain. The pain treatment market is huge with a global market size of $60.2 billion. That market is expected to grow to $83 billion by 2024, according to Transparency Market Research.
Currently, INSY is trading at $12.74 per share. Analysts' consensus one-year target price for the stock is $16.40. But there are estimates as high as $26 per share. That makes the expected return between 29% and 104% this year.
Amazing Video Captures Medical Miracle: On June 23, a small Texas lab plans to reveal a historic breakthrough regarding the deadliest disease known to man. This could answer the prayers of 14 million Americans. Last year, this lab's sales were $388,000. However, after this announcement, they could quickly ink a deal that pays them $500 million. See the footage of this breakthrough and then learn how you could get in on the ground floor while there's still time...