The biotech industry is expected to remain in focus as the coronavirus is far from gone and an aging population will require even more healthcare. Given the industry’s solid growth potential, Harmony Biosciences (HRMY) and Dynavax Technologies (NASDAQ:DVAX), which have performed well so far, could be solid bets for the fourth quarter.The biotech industry came into the limelight last year, with the onset of the COVID-19, as companies rushed to develop a vaccine or a treatment to fight against the virus. The increased attention to the industry fueled record financings and IPOs. Moreover, the ongoing focus on developing gene therapies and synthetic biology to meet the rising demand from an aging population could shape the industry’s growth.
The global biotechnology market is expected to expand at a CAGR of 15.8% from 2021 to 2028. Spurred by COVID-19, the VanEck Vectors Biotech ETF (BBH) has gained 63.4% over the past two years, surpassing the broader SPDR S&P 500 ETF Trust’s (SPY) 48.1% gain.
Therefore, fundamentally sound biotech stocks Harmony Biosciences Holdings, Inc. (HRMY) and Dynavax Technologies Corporation (DVAX), which are currently trading above their 50-day and 200-day moving averages, could be solid bets.