2 Health Care Stocks That May Rise in the Next 5 Years

While the stock market is experiencing significant volatility right now, there is a good chance that it will perform even better over the next five years. This is what we have come to expect from Equity considering their track record over the past decade. So, it might still be a good idea to invest in stocks right now, but not only that. Let’s consider two healthcare companies that have the potential to outperform the broader equation over the next half-decade: modern (NASDAQ: MRNA ) and Abevix (NASDAQ: ABVX ).

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Moderna’s shares could rise as it continues to develop its mRNA platform. Compared to previous vaccines, mRNA variants have advantages, including being much faster to produce and sometimes stronger, more targeted immune responses. Moderna was able to develop and market a coronavirus vaccine quickly for a reason. Now looking for other goals. Moderna has developed a flu vaccine that is being considered for approval in the United States Although there are already options on the market, their effectiveness typically falls between 40% and 60% — Moderna is looking to improve that.

The biotech’s most promising candidate, however, may be mRNA-4157, an investigational personalized cancer vaccine. Moderna and its partners in this project, Merkrecently published five-year follow-up data from 2 clinical trials showing that mRNA-4157, in combination with Keytruda, significantly reduced the risk of recurrence or death compared to Keytruda alone in patients with advanced melanoma. mRMA-4157 is being investigated in Phase 2 and Phase 3 studies in several types of cancer.

Progress with this candidate is a key reason why Moderna’s shares are up nearly 73% this year already, and the company could maintain somewhat similar (though likely less impressive) momentum over the next half-decade as it moves forward with other programs. Now, there are some risks, including the very real possibility of clinical and regulatory setbacks that could sink the stock price. Investors should keep this in mind. But those who are comfortable with above average risk should still put some money in this stock.

Abivax, a biotech company based in France, is looking to break into the highly competitive market for ulcerative colitis (UC) drugs. It won’t be easy: some big pharmaceutical companies dominate this space. But Abevix has a secret weapon. Its lead candidate, obefazimod, looks very promising. To see why, consider that many of the immunosuppressive drugs indicated to treat UC, although effective, can weaken patients’ immune systems and make them more vulnerable to certain diseases. JAK inhibitors, the class of immunosuppressants most approved for UC, come with a higher risk of serious cardiovascular events.

Obefazimod is not a conventional immunosuppressant. It could potentially treat UC patients more effectively—perhaps even more so—while avoiding the serious drawbacks of its competitors.

In a phase 3 study, obefazimod achieved the primary endpoint of clinical remission in patients with moderate to severe UC. What is even more encouraging is that in this trial, approximately 47.3% of patients had previously failed treatment, including many previously treated with JAK inhibitors. If Abevix can win approval and challenge these well-established franchises in UC that generate billions in annual revenue, the company could increase its sales over the next five years.

And of course, Abiwex should eventually look to extend the label beyond UC and into other related conditions. Now, there is still some work to be done. Obefazimod is not yet approved. Abiwex is currently awaiting data from a maintenance study in UC patients, which should be published during the second quarter. A positive result here could shock the stock. As usual, though, Abiwex will be highly susceptible to clinical setbacks, and not having a product on the market makes the stock especially vulnerable.

That said, obefazimod’s outstanding prospects could give the stock a lift, perhaps through an acquisition, so risk-tolerant investors should give it a second look.

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Prosper Junior Bakiny has no position in any of the listed stocks. The Motley Fool has and offers positions at Merck and Moderna. Motley Fool has a disclosure policy.

2 Healthcare Stocks That Could Rise in the Next 5 Years was originally published by The Motley Fool

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