One of the things that are often mentioned by market experts is the possibility of making profits by investing in growing sectors. More often than not, it proves to be a sound strategy. In this regard, it must be said that the biotech sector has emerged as one of the most promising sectors in recent years. As a result investors have made a lot of money by investing in the right stocks.
However, an investor needs to watch the market closely and keep an eye on the latest movements. Pay attention to big news and especially earnings results this time of year. Here is a look at two biotech stocks may be worth watching at this point.
The first biotech stock that could be considered by investors could be Sorrento Therapeutics Inc (NASDAQ:SRNE), which has surged significantly one the back of some major developments on Friday. The company revealed that it has received a proposal from a private equity firm, which is interested in taking up a majority stake in the company.
Additionally, the firm is also prepared to acquire all outstanding Sorrento shares, thereby valuing it at $993 million. This update has resulted in a massive rally in the Sorrento stock and investors have piled on to the stock in droves. Sorrento stock has soared by as much as 39.50% on Friday.
Another biotech stock that has made significant gains in recent days is Aclaris Therapeutics Inc (NASDAQ:ACRS). On Thursday, the company revealed positive data from the Phase 1 trial of its product ATI 450, which is an oral inhibitor.
The positive data from the medicine is a huge positive for Aclaris and the company went on to add that the data supports the progression into the second phase of clinical development. It is a major development for Aclaris and the investors thought so as well. The stock has gained as much as 17.20% since the announcement was made.