3 Biotech Stocks With Revolutionary Pipelines to Buy Today

The biotech industry is evolving rapidly, with innovative companies pushing the boundaries of science and medicine. Several biotech companies are making headlines this year for their groundbreaking research and impressive market performance.

Within this framework, fundamentally robust biotech stocks such as Vertex Pharmaceuticals Incorporated (VRTX), Regeneron Pharmaceuticals, Inc. (REGN) and Gilead Sciences, Inc. (GILD), with their revolutionary pipelines, could offer significant return potential due to their dominant positions in high-demand sectors and transformative treatments.

This year, there are several key factors driving the industry’s growth. Increasing global healthcare spending is driving investment in innovative treatments and technologies. Advances in gene editing, such as CRISPR and bioinformatics, are enabling even more precise and effective therapies.

Furthermore, the growing demand for personalized medicine is driving the development of customized treatments based on individual genetic profiles. Together, these elements create an environment ripe for biotechnological innovation and expansion.

To date, the U.S. Food and Drug Administration (FDA) has approved 22 new drugs for conditions such as Alzheimer’s, bladder cancer, hypertension and more. More approvals are expected to follow this year, potentially accelerating the industry’s expansion and highlighting the continued advances in biotechnology.

Precedence Research reports that the U.S. biotechnology market, which was valued at $246.18 billion in 2023, is expected to grow at a compound annual growth rate (CAGR) of 11.9% to reach approximately $763.82 billion in 2033.

Taking these factors into account, let’s discuss the basics of three leading biotech stocks, starting with number 3.

Stock #3: Vertex Pharmaceuticals Incorporated (VRTX)

VRTX is committed to investing in scientific innovation to create transformative medicines for people with serious diseases. It has four approved medications that treat the underlying cause of cystic fibrosis (CF), and one approved therapy for severe sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT).

On July 2, VRTX announced that the FDA had accepted its New Drug Application (NDA) for the investigational once-daily triple combination therapy vanzacaftor/tezacaftor/deutivacaftor (Avanza triple).

This therapy is aimed at people with CF aged six years and older who have at least one F508del mutation or another responsive mutation in the cystic fibrosis transmembrane conductance regulator (CFTR) gene.

The Vanza Triple builds on VRTX’s legacy of groundbreaking CFTR modulators, expands its therapeutic footprint and strengthens its competitive advantage in the biopharmaceutical industry.

Additionally, on April 23, VRTX and TreeFrog Therapeutics announced that VRTX has exclusively licensed TreeFrog’s proprietary cell manufacturing technology, C-Stem™, to optimize the production of VRTX’s cell therapies for type 1 diabetes (T1D).

The collaboration marks an important step in VRTX’s strategy to advance its cell therapy pipeline and improve treatment options for T1D patients.

In the first quarter of fiscal year 2024, ended March 31, 2024, VRTX’s net product revenues increased 13.3% year over year to $2.69 billion. Non-GAAP operating income increased 48.1% from the prior year quarter to $1.34 billion.

Additionally, the company’s non-GAAP net income was $1.24 billion, indicating a year-on-year growth of 56.43%, while its non-GAAP EPS was $4.76, a year-on-year increase of 56.1%. As of March 31, 2024, the company’s total assets were $23.92 billion, compared to $22.73 billion as of December 31, 2023.

For the fiscal year ending December 2024, analysts expect VRTX’s revenue to rise 16.7% year over year to $10.76 billion. Meanwhile, EPS is expected to grow 19.7% year over year to $17.03. Over the next five years, VRTX’s EPS is expected to grow at a CAGR of 12.5% ​​per year.

The stock is up 15.1% over the past six months and 40.7% over the past year, closing at $495.26 in the last trading session.

VRTX’s robust fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. POWR Ratings are calculated taking into account 118 different factors, each optimally weighted.

VRTX has a B rating for Quality, Value and Sentiment. It is ranked #16 out of 341 stocks in the Biotech industry.

In addition to the POWR ratings we listed above, we also have VRTX ratings for Momentum, Growth, and Stability. See all VRTX ratings here.

Stock #2: Regeneron Pharmaceuticals, Inc. (REGN)

REGN develops and commercializes medicines for people with serious diseases. The products and candidates in development are aimed at helping patients with eye problems, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, neurological diseases, hematological diseases, infectious diseases and more.

On July 3, REGN and Sanofi announced that the European Commission (EC) had approved Dupixent® (dupilumab) as an add-on maintenance therapy for people with uncontrolled chronic obstructive pulmonary disease (COPD), characterized by elevated blood eosinophil levels.

This addition to REGN’s portfolio can diversify its therapeutic offering and strengthen its market position in respiratory diseases.

On June 11, REGN and Sanofi announced that the FDA has approved Kevzara (sarilumab) for the treatment of patients weighing 63 kg or greater with active polyarticular juvenile idiopathic arthritis, a form of arthritis that affects multiple joints at once.

This milestone could enhance the company’s drug pipeline by offering an established therapy with a proven efficacy and safety profile for young patients. By expanding its therapeutic offering, REGN can strengthen its position in the pediatric market, potentially increasing market share and driving future growth.

In the first quarter of fiscal 2024, which ended March 31, 2024, REGN reported revenues of $3.15 billion. Non-GAAP net income was $1.12 billion, while non-GAAP net earnings per diluted share were $9.55. Additionally, the company’s free cash flow increased 15.9% from the year-ago value to $1.38 billion.

Additionally, the Company’s total assets were $34.37 billion as of March 31, 2024, up from $34.08 billion as of December 31, 2023.

Analysts expect REGN’s revenue for the second quarter of fiscal 2024 (ending June 2024) to rise 7.2% year over year to $3.39 billion, while earnings per share for the same quarter are expected to grow 3.7% from the same period last year to $10.61. Additionally, the company has topped consensus revenue and earnings per share estimates in three of the four trailing quarters.

The stock is up 14.7% over the past six months and 47.6% over the past year, closing at $1,078.63 in the last trading session.

REGN’s solid fundamentals are reflected in its POWR Ratings. It has a B grade for Quality, Value, Sentiment, and Stability. It ranks #11 in the 341-stock Biotech industry.

In addition to the POWR Ratings I mentioned above, we also have REGN ratings for Momentum and Growth. You can view all the REGN ratings here.

Stock #1: Gilead Sciences, Inc. (GILD)

GILD is focused on the discovery, development and commercialization of medicines in areas of unmet medical need. Operating in more than 35 countries worldwide, GILD is committed to improving medicines to prevent and treat life-threatening diseases including HIV, viral hepatitis, COVID-19, cancer and more.

On April 26, GILD announced that the FDA has approved an updated label for Biktarvy®, including additional data that reinforce its safety and efficacy for the treatment of pregnant people with HIV-1 (PWH) with suppressed viral loads. This update is expected to strengthen GILD’s position in the HIV treatment market by addressing the needs of pregnant PWH, thereby expanding their patient base.

On March 22, GILD announced that it had completed its acquisition of CymaBay Therapeutics, Inc. (CBAY) for a total equity value of approximately $4.3 billion.

The acquisition adds CBAY’s research-leading product candidate, seladelpar, to GILD’s portfolio for the treatment of primary biliary cholangitis (PBC), including pruritus. This integration is consistent with GILD’s commitment to bringing transformational medicines to patients and strengthens its position in the liver disease market.

For the first quarter of fiscal 2024 ended March 31, 2024, GILD’s total revenues increased 5.3% year-over-year to $6.69 billion. Product sales were $6.65 billion, up 5.4% from the same period last year.

Additionally, the Company’s total liabilities and equity were $56.29 billion as of March 31, 2024, down from $62.13 billion as of December 31, 2023.

For the second quarter of fiscal 2024, which ended in June, analysts expect GILD’s revenue and earnings per share to rise 2.1% and 19.3% year over year to $6.74 billion and $1.60, respectively. The company has also topped consensus revenue estimates in each of the four consecutive quarters, which is impressive.

GILD shares are up 10.6% over the past month and 6.2% over the past five days, closing at $77.01 in the last trading session.

It’s no surprise that GILD has an overall rating of A, which translates to a Strong Buy in our POWR rating system. The stock is rated A for Value and B for Growth and Quality.

GILD is ranked #2 in the same industry. Click here to view GILD’s Momentum, Stability and Sentiment ratings.

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VRTX shares were unchanged in premarket trading Monday. Year to date, VRTX has gained 21.72%, compared with a 15.27% rise in the benchmark S&P 500 index over the same period.

About the Author: Aanchal Sugandh

Aanchal’s passion for financial markets drives her work as an investment analyst and journalist. She holds a bachelor’s degree in finance and is a CFA graduate. She is skilled in assessing the long-term prospects of stocks using her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns. More…

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