The biotech industry has witnessed solid growth over the past year, in large measure attributable to the demand for drugs to fight COVID-19, among other diseases. The integration of technology and successful clinical trials of drugs for treating critical ailments have boosted Wall Street’s optimism about several stocks in the sector. For instance, analysts expect Bionano (BNGO), Cerus (NASDAQ:CERS), Agenus (NASDAQ:AGEN), and VBI (VBIV) to gain by more than 60% in the near term. Read on.The biotechnology industry has witnessed solid growth over the past year with rising demand for treatments and vaccines to fight COVID-19. Now that the global vaccination drive is in full flight, biotech companies are working on their research and development projects to advance new therapies to cure or moderate other critical diseases. Investor optimism in the biotech industry is evident in the VanEck Vectors Biotech ETF’s (BBH) 16.8% returns over the past six months.
Furthermore, given the ageing population in the United States and other Western countries--and with that an implied need for more healthcare solutions in the future--the biotechnology industry is poised for solid growth in coming years. Indeed, the global biotechnology market is expected to grow at a 15.5% CAGR over the next seven years to hit $850.5 billion by 2027.
Wall Street analysts believe budding biotech stocks Bionano Genomics, Inc. (BNGO), Cerus Corporation (CERS), Agenus Inc . (AGEN), and VBI Vaccines Inc. (NASDAQ:VBIV) have the potential to rally by more than 60% in the next 12 months.