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2 UK biotech stocks to watch in 2021

first_img2 UK biotech stocks to watch in 2021 Zaven Boyrazian | Thursday, 28th January, 2021 | More on: BMK ERGO Simply click below to discover how you can take advantage of this. Enter Your Email Address I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!center_img The biotech industry has been on a roll lately. Innovations from biotech stocks, like Oxford Biomedica, continue to generate headlines around the progress of Covid-19 vaccines. But what about developments unrelated to the pandemic?Two unique biotech companies have caught my attention, both of which seem to have incredible potential for growth. Would I buy them now?5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…A biotech stock breeding successFishermen have been struggling to keep up with the rapidly rising demand for fish through traditional fishing methods. To keep up, many businesses are turning towards aquaculture. That’s an industry where the fish are bred, raised and eventually harvested for consumption, rather than catching them wild.Between 1990 and 2018, aquaculture’s total fish production increased over 520%. And this created a very favourable environment for Benchmark Holdings (LSE:BMK).The biotech stock has three operations. Its genetics department uses genomics to breed fish and improve their resistances towards most diseases. The second manufactures specialised food that improves health and reduces mortality. The final segment focuses on developing specialised medicine to treat infected salmon.For example, sea lice are a plague that costs salmon breeders nearly $1bn worldwide each year. However, Benchmark successfully created an award-winning solution that eliminates sea lice without harming the fish.Combined, the company enables farmers to maximise their efficiency and yield. The stock has a strong balance sheet and clearly operates in a market growing at exceptional rates.However, there are some considerable risks. The business is still young and has yet to generate any profits. What’s more, its portfolio of products, while impressive, remains quite limited. As such, it looks overly dependent on certain key products in my eyes.Providing a path through clinical trialsThe pharmaceutical industry is one of the most highly regulated sectors in the market today. And while the regulations protect patients’ health, they also introduce complications for pharmaceutical companies.Fortunately, Ergomed (LSE:ERGO) has a solution. The biotech stock is a global provider of specialised clinical trial services for the drug development industry.Its pharmacovigilance (PV) segment performs drug safety monitoring throughout all stages of development, as well as after a product enters the market. The firm also provides research management services through its clinical research outsourcing (CRO) department. These services include planning, monitoring, and reporting of clinical trial data.The PV and CRO industries are expected to grow by 11.6%, and 7.5%, respectively, over the next five years. Needless to say, I think this presents a considerable investment opportunity.But there is one significant problem I’ve spotted for this biotech stock — Brexit. As the UK is no longer part of the EU, the regulatory environment for drug development has already begun to change. And this continues to create complications and delays throughout the drug development process.Consequently, any delays in clinical trials will impact Ergomed’s revenue, at least temporarily. However, the degree of impact should be limited as the firm generates most of its revenue outside the UK. The bottom lineBoth of these biotech stocks have performed exceptionally well over the last 12 months. Combined, their share prices have increased by over 100%!And while I see enormous potential in both businesses, there remain several unknown factors that make me slightly cautious. Therefore, I’m not adding either stock to my portfolio just yet. But I’m definitely going to keep an eye on them. Our 6 ‘Best Buys Now’ Shares See all posts by Zaven Boyrazian Zaven Boyrazian owns shares in Oxford Biomedica. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. “This Stock Could Be Like Buying Amazon in 1997” Image source: Getty Images last_img read more