Because the spread of the coronavirus Delta variant in several countries is becoming a major concern, the biotech industry is expected to continue attracting investors’ attention. The industry’s role in finding cures for various other diseases should also sustain investors’ focus. So, we think it could be wise to scoop up shares of the fundamentally strong biotech companies United Therapeutics (NASDAQ:UTHR), SIGA Technologies (SIGA), and Ovid Therapeutics (NASDAQ:OVID). We think they are undervalued at their current price levels. So, let’s look closer at these names.The COVID-19 pandemic highlighted the importance of the biotech industry, and several biotech companies have been contributing to the fight against the COVID-19 pandemic through vaccines and special treatments. Now, the spread of the new Delta variant of the coronavirus is driving continuing investor interest in the industry. This is evidenced by the iShares Biotechnology ETF’s (IBB) 11% returns over the past three months.
Furthermore, government and private funding support for finding cures for other medical challenges, such as cancer or Alzheimers, and the aging population, should drive the industry’s growth significantly. According to a report by Vision Research Reports, the global biotechnology market is expected to grow at a 16.8% CAGR between 2021 - 2030.
Because biotech stocks are generally considered high risk-reward investments, we think it could be wise to bet on quality biotech stocks United Therapeutics Corporation (UTHR), SIGA Technologies, Inc. (SIGA), and Ovid Therapeutics Inc . (OVID). Each stock looks undervalued at its current price level considering the solid growth prospects based on the companies' continued innovations.