2 Under-the-Radar Stocks to Buy and Hold
They aren’t the best-known corporations in the biotech industry, but they can deliver excellent long-term returns.
Two biotech stocks that may be worth considering for long-term investment are Axsome Therapeutics (AXSM) and Exelixis (EXEL), despite not being as popular as some other companies in the artificial intelligence sector. Axsome Therapeutics focuses on developing medicines for central nervous system conditions, with its most important drug being Auvelity, which treats major depressive disorder and Alzheimer's disease agitation.
The drug's sales surged 51% year-over-year in the second quarter, accounting for about 82.6% of the company's revenue in that period. Furthermore, Axsome Therapeutics is exploring additional indications for Auvelity and has multiple promising assets in various stages of development. On the other hand, Exelixis is a cancer-focused biotech, primarily known for its drug Cabometyx, which treats some forms of liver and kidney cancer.
Cabometyx has been Exelixis' main growth driver, with revenue increasing by nearly 11% year-over-year in the second quarter. The company's patent exclusivity for Cabometyx should protect it from generic competition until at least 2030. Additionally, Exelixis has shown recent progress in clinical trials, such as zanzalintinib, which targets metastatic colorectal cancer and may soon receive FDA approval.
Overall, both Axsome Therapeutics and Exelixis present promising opportunities for long-term investors in the biotech sector.
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