Are These The Best Synthetic Biology Stocks To Buy Right Now?
As we begin another week of trading, investors would be looking for good stocks to invest in. If anything, emerging sectors of the stock market such as synthetic biology (SB) stocks could be worth considering now. Before we go into details, what are synthetic biology stocks, and what do these companies do you might ask? Well, simply put, SB involves the development and manufacturing of new biological components, devices, and systems. As the name suggests, the end products are man-made versions of natural biological things found in nature. Because of this, the applications for SB are vast and spread out across numerous subdivisions. The likes of which include gene-editing, vaccine development, and even alternative fuel research.
While all this is impressive, the industry remains a budding one. Generally, most would liken SB to industrial biotech as SB companies manufacture potential core components fueling the biotech industry. Companies such as Zymergen (NASDAQ: ZY) and Gevo (NASDAQ: GEVO) employ cutting-edge tech in their SB work today. Not to mention, even notable names in the tech industry like Bill Gates appear to be bullish on the industry now. This can be seen given his investments in synthetic meat manufacturer Beyond Meat Inc. (NASDAQ: BYND).
Overall, the SB industry brings a lot to the table in terms of possible long-term growth potential. As such, I could see investors eyeing the top synthetic biology stocks in the stock market today. Could one of these five be worth investing in now?
Best Synthetic Biology Stocks To Watch Right Now
Twist Biosciences Corporation
Starting us off today is Twist Biosciences. In brief, Twist is a leading name in the synthetic biology industry today. The company’s core work revolves around its proprietary DNA synthesis platform. Twist’s platform essentially works to industrialize the engineering of biology. It achieves this by manufacturing synthetic DNA via a silicon chip. This tech is a new method that Twist initially pioneered.
According to the company, the applications for its platform range from drug discovery and development, to digital data storage in DNA. With an established SB offering, TWST stock could be on investors’ radars now. Evidently, TWST stock is currently looking at gains of over 350% since its pandemic era low.
Regardless of its current momentum, Twist continues to make strategic plays. In late June, the company acquired iGenomX, a developer of library preparation tools for next-generation gene sequencing workflows. Through the $35 million cash and stock deal, Twist would be enhancing its ability to support its clients’ sequencing needs. According to Evercore (NYSE: EVR) analyst Vijay Kumar, the move could bring more meaningful revenue opportunities to Twist in the long run. Could all this make TWST stock a top buy for you now?
Following that, we will be looking at protein engineering company, Codexis. Through its CodeEvolver platform, the company researches and develops novel, high-performance enzymes, and biotherapeutics. For the most part, Codexis’ core end markets consist of the pharmaceutical, food, industrial products, and life sciences industries. According to Codexis, the company’s enzymes provide users with reduced energy usage, waste generation, and higher yields overall in their SB-related operations.
For one thing, the company appears to be kicking into high gear on the operational front. Firstly, the company’s ongoing collaboration with GlaxoSmithKline (NYSE: GSK) continues to fuel growth.
Earlier this month, Codexis received its first milestone payment from GSK through the commercialization of an enzyme, manufactured under a licensing agreement. On top of that, Codexis is now working with another leading name in the pharmaceutical industry, Novartis (NYSE: NVS) under similar arrangements. By and large, with the company building connections with industry giants, could CDXS stock be worth investing in now?
Another name to know in the SB industry now would be Amyris. The California-based biotech company focuses on the specialty and performance chemicals, flavors and fragrances, cosmetic, and pharmaceutical markets. All this is possible thanks to an array of state-of-the-art machine learning, robotics, and artificial intelligence tech. Amyris’ ingredients are present in over 3,000 products from brands that cater to over 200 million consumers globally. Given the company’s immense market reach, I could see investors eyeing AMRS stock now.
If anything, Amyris is not sitting on its laurels just yet. As of July 1, the company now holds an exclusive license to develop and use a coronavirus vaccine. To explain, the company developed the RNA COVID vaccine with the Infectious Disease Research Institute (IDRI), a Washington-based non-profit organization.
Through a collaboration with Nant Africa, Amyris’ manufacturing partner for its Malaria treatment, the company will now be advancing its vaccine candidate to human trials. Given all of this, will you be adding AMRS stock to your portfolio?
Soaring Eagle Acquisition Corporation
Next up, we have Ginkgo Bioworks. To point out, Ginkgo is currently set to go public via a SPAC merger with the Soaring Eagle Acquisition Corporation (SRNG). The business combination values Ginkgo at a $15 billion pre-money equity valuation. Ginkgo is mainly focused on building a cell programming platform. The likes of which would allow clients to program-specific traits and expressions into cells. In theory, this would position Ginkgo to benefit from biotech applications across numerous diverse markets. Some key examples of this would be the agricultural, pharmaceutical, and industrial chemical industries to name a few.
Despite gaining attention in the stock market, Ginkgo does not seem to be sitting idly by. In June, the company announced it is working with global cannabinoid company, Cronos Group (NASDAQ: CRON). The duo is looking to accelerate the commercialization of Cronos’ cultured cannabinoids.
Besides, Ginkgo is also working with Sumitomo Chemical, one of Japan’s leading chemical companies. Through this team-up, Ginkgo’s expertise is being put towards “significantly increasing the production efficiency and sustainability” of Sumimoto’s commercial products. All things considered, will you be buying SRNG stock?
Last but not least is Moderna. This leading name in the coronavirus vaccine race barely needs any introduction. In particular, Moderna’s vaccine platform introduces synthetic messenger RNA into human cells.
In turn, said cells work to produce targeted immune responses against particular diseases such as coronaviruses. All of this has and continues to put MRNA stock in the spotlight now even after gaining by over 240% in the past year.
While the world is still dealing with the pandemic, demand for Moderna’s vaccine remains high. Over the weekend, Mexico revealed plans to authorize it and Taiwan greenlit the combination of Moderna’s vaccine after the first dose of AstraZeneca’s (NASDAQ: AZN) vaccine candidate. All in all, Moderna’s market reach still seems to be growing by the day. With Moderna joining the S&P 500 index on July 21, would MRNA stock have more room to run?