Accredited investors for biomedical technology: The latest news on biotech stocks
Are you looking for the latest news on biotech stocks? Here is what accredited investors or members of a DAO need to know about the latest investments in biomedical technology.
Outlook on Vir Biotechnology remains positive, despite stock price dip
Many investors and analysts retain a positive outlook on stock prices for Vir Biotechnology, despite the 45% dip in its biotech stocks price through 2022. Vir’s breakthrough anti-COVID drug sotrovimab (trademark Xevudy) received an Emergency Use Authorization from the Food and Drug Administration, resulting in a spike in demand for it globally.
In addition to the boost in demand, accredited investors were bullish on Vir and its drug because of the profit-sharing agreement that the biotech firm had with its marketing partner, GlaxoSmithKline, in which Vir pockets 72.5% of all revenue generated by sotrovimab.
Vir’s stock price has dipped, despite the generous revenue split between Vir and Glaxo, because the EUA granted to sotrovimab has been rolled back. The arrival of the BA.2 subvariant of the Omicron strain of COVID-19 drove this rollback, as the FDA questioned the effectiveness of sotrovimab against the new variant. This shook accredited investor confidence significantly, resulting in the dip in biotech stocks price.
While sotrovimab may not be available in the United States, it is still available elsewhere, so demand for the drug has not been completely eradicated. Instead, accredited investors and constitution DAO may want to view Vir stock as something of a distressed asset for now, purchasing while the price remains relatively depressed and awaiting its inevitable rebound.
Accredited investor offerings in a manufacturer of child-specific orthopedics
OrthoPediatrics has made a name for itself in a particular niche in biomedical technology. It produces orthopedic devices and aids for children and, with its first-mover status in orthopedic pediatrics, has established itself as a leader in this niche.
The strength of its business model rests, interestingly enough, on basic human nature. No matter the conditions and social forces surrounding them, children will always be given over to energetic play, exploration, and roughhousing. Occasionally, this results in their injury, creating a relatively inelastic demand for the products that OrthoPediatrics provides.
A quick look at the biomedical technology company’s year-over-year performance bears this out. 100% of the top children’s hospitals in the US have used some of OrthoPediatrics’ products, including specialized bracing, devices for deformity correction, and trauma treatment and management aids.
From a financial perspective, the biomedical technology company has shown a compounded annual growth rate of around 21% since 2016. Since its initial public offering in 2017, accredited investors in the company and DAO who purchased stock have seen a 120% increase in their investment. This figure far outstrips most other stock performance benchmarks, including the 68% rate of return that one might expect from the S&P 500 index during the same period.
Overall, the pediatric orthopedics market, which seems to have been cornered by OrthoPediatrics, seems like a sound investment for DAO interested in the life sciences, particularly during periods of economic uncertainty. It seems like no matter the conditions, children will continue to be children and will still need treatment for all the scrapes they inevitably find themselves in.
Join our community to learn the latest about biotech stocks today.