4 Biotech Stocks In Neurology, As Biotechs March On

  • Biotechs have been rejuvenated by a dose of M&A and near-term regulatory deflection
  • After significantly lagging the broader market, biotech is steadily making progress
  • Regulatory concerns remain an overarching backdrop to the healthcare sector
  • Neurology is attracting renewed interest after Biogen’s decision to present its Alzheimer’s drug for FDA approval
  • We briefly discuss 4 promising neurology stocks

Biotech Pulse

Biotechs finally have a gust of wind in their sails. 

In a space of 2-months, biotechs have gone from recording yearly lows in early October, to recording 2019 highs. The 25% surge has been a result of a relatively less threatening regulatory environment and a strengthening of acquisition and partnership activity.

The earlier articles, Healthcare On The March and 4 RNA Stocks For A Biotech Portfolio, emphasized why healthcare should begin to receive greater weight in portfolios as the risk of an industry restructuring has eased somewhat and a recent healthcare transparency plan by the administration was much milder than what it could have been. Also, as pharmaceutical companies continue acquiring biotechs or entering into large dollar partnerships with them, it has reassured investors and boosted confidence in biotech prospects. There is no doubt that scientific advances have been accumulating. But biotech valuations were held back and required a glimmer of regulatory relief and a shove from timely acquisitions. 

Biotech has been a lagging sector and the recent spurt is making up for lost ground. As has been noted in prior articles over the past two months, we do believe there is a window of opportunity that exists for healthcare overall and biotechs, in particular, to perform relatively better than the broader market.

Neurology – A Complex Challenge

Over 350 years ago, Oxford-educated English physician Thomas Willis in his book Cerebri Anatome (The Anatomy of the Brain) meticulously laid out the various structures of the brain, and first introduced the word neurology or doctrine of the nerves, as he characterized it. Neurology is now the medical field of nervous system disorders. Such was the clinical acumen, prescience, and depth of masterful brain theories establishing astonishing links, that Willis is considered as the founding father of neurology and his name has been imprinted on the human mind. A circular formation of arteries at the base of our brain, as highlighted in the image below, is known as the Circle of Willis.

Source: Illustration by PrudentBiotech.com; Thomas Willis by Wikimedia.org; Brain Image by Anatomy Science

Although the discipline of neurology was established 350 years ago and developed by many great minds, rapid progress has occurred in the last few decades as advances in technology provided the medium to further unravel the mysteries of the mind and the nervous system. But a lot remains unknown in this highly complex, interlinked, and broad field of neuroscience, which is the scientific study of the nervous system that includes the central nervous system or CNS, the brain, and the spinal cord. 

1 2 3 4
View single page >> |

If you are interested in quantitative model-driven investing in the healthcare sector, you must look at the Prudent Healthcare model portfolio service on Seeking Alpha, to be offered imminently. The ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.