As the coronavirus continues to be a problem, and as an older population requires more healthcare, it is likely that the biotech sector will remain in center stage. Given the industry’s solid growth potential, Harmony Biosciences (HRMY) and Dynavax Technologies (NASDAQ:), which have performed well so far, could be solid bets for the fourth quarter.The biotech industry came into the limelight last year, with the onset of the COVID-19, as companies rushed to develop a vaccine or a treatment to fight against the virus. Record financings have been made and IPOs were a result of increased interest in the sector. Moreover, the ongoing focus on developing gene therapies and synthetic biology to meet the rising demand from an aging population could shape the industry’s growth.

Global biotechnology is predicted to grow at 15.8% CAGR between 2021 and 2028. Spurred by COVID-19, the VanEck Vectors Biotech ETF (BBH) has gained 63.4% over the past two years, surpassing the broader SPDR S&P 500 ETF Trust’s (SPY) 48.1% gain.

Fundamentally sound biotech stocks Harmony Biosciences Holdings, Inc., (HRMY), and Dynavax Technology Corporation (DVAX) are solid options. They trade above their 200-day and 50-day moving averages.

Continue reading on StockNews