Biotech stocks are at the forefront of a healthcare revolution driven by breakthrough innovations in areas such as personalized medicine, gene editing, and immunotherapy. Companies in the sector are offering new hope for patients worldwide with their pioneering research that is reshaping the healthcare landscape.
Given the industry’s robust prospects, it might be considered wise to invest in fundamentally stable biotech stocks, Amgen Inc. (AMGN), BioNTech SE (BNTX), and Gilead Sciences, Inc. (GILD), for potential gains.
By harnessing technologies like CRISPR and CAR-T cell therapy, biotech companies are tackling complex diseases such as cancer and rare genetic disorders with unprecedented accuracy. Such innovations in advanced technology are minimizing side effects and improving outcomes. Also, by analyzing vast datasets, biotech companies are identifying promising therapeutic targets and optimizing clinical trial designs, which helps reduce the time to market for new drugs.
Furthermore, collaboration between biotech and large pharmaceutical companies is fueling progress, opening doors to advanced technology, rich data sources, and skilled personnel. Strategic partnerships and joint ventures are common; this further increases a swap’s credibility, driving more investors to believe, and can also help finance research, clinical trials, regulatory submissions, or market-access strategies.
Likewise, in 2024, the approval of 50 novel drugs by the U.S. FDA showcases revolutionizing the growth of healthcare. In addition, the global biotechnology market is anticipated to reach $3.88 trillion by 2030, exhibiting a CAGR of 13.9%.
With that in mind, let’s delve into the fundamentals of the three Biotech stock picks, beginning with the third choice.
Stock #3: Amgen Inc. (AMGN)
AMGN discovers, develops, manufactures, and delivers human therapeutics globally. The company’s product portfolio includes Enbrel, Otezla, Prolia, XGEVA, Repatha, Nplate, KYPROLIS, Aranesp, EVENITY, Vectibix, BLINCYTO, TEPEZZA, and KRYSTEXXA.
On January 17, AMGN received approval from the U.S. Food and Drug Administration (FDA) for LUMAKRAS® (sotorasib) in combination with Vectibix® (panitumumab) for the treatment of adult patients with KRAS G12C-mutated metastatic colorectal cancer. Michael Sapienza, Chief Executive Officer of the Colorectal Cancer Alliance, believes that this new combination approach may offer a beneficial treatment option for patients, leading to an important breakthrough.
On December 7, AMGN announced new data that demonstrates adding BLINCYTO® (blinatumomab) to chemotherapy significantly improves disease-free survival (DFS) in newly diagnosed pediatric patients with National Cancer Institute (NCI) standard risk B-cell acute lymphoblastic leukemia. The findings further establish BLINCYTO as a versatile first-line consolidation therapy across all ages and treatment backbones.
For the fourth quarter of 2024, which ended on December 31, AMGN’s total revenues increased 10.9% year-over-year, amounting to $9.08 billion. The company reported non-GAAP income from operations of $4.03 billion, indicating a 10.2% increase from the prior-year quarter.
In addition, AMGN’s non-GAAP net income came in at $2.88 billion, up 13.2% year-over-year, while its non-GAAP EPS grew 12.7% from the year-ago value to $5.31. Its adjusted free cash flow rose significantly from the year-ago value to $4.40 billion.
As per the financial guidance for the full year 2025, AMGN now forecasts revenue to be in the range of $34.3 billion to $35.7 billion and its non-GAAP EPS between $20 and $21.20.
The consensus revenue estimate of $8.09 billion for the fiscal first quarter (ending March 2025) represents an 8.6% increase year-over-year. The consensus EPS estimate of $4.28 for the same quarter indicates an 8.2% improvement year-over-year. The company has an excellent surprise history; it surpassed the consensus revenue and EPS estimates in three of the trailing four quarters.
AMGN’s stock has surged 12.6% year-to-date to close the last trading session at $293.54.
AMGN’s POWR Ratings reflect this robust outlook. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
AMGN has a B grade for Growth and Quality. It is ranked #23 out of 340 stocks in the Biotech industry. Click here to see the additional ratings for AMGN (Value, Momentum, Stability, and Sentiment).
Stock #2: BioNTech SE (BNTX)
Headquartered in Mainz, Germany, BNTX is a clinical-stage biotechnology company that focuses on developing and commercializing patient-specific immunotherapies for the treatment of cancer and other serious diseases. The company is developing FixVac product candidates, including BNT111, BNT112, BNT113, BNT115, and BNT116.
On February 3, BNTX announced the completion of its acquisition of Biotheus, a clinical-stage biotechnology company dedicated to the discovery and development of novel antibodies to address unmet medical needs of patients with oncological or inflammatory diseases.
This acquisition is a strategic move that allows BNTX to obtain full global rights to BNT327 and rights to all other candidates of Biotheus’ pipeline, along with its in-house antibody generation platform and bispecific antibody-drug conjugate.
BNTX, for the third quarter (ended September 30, 2024), reported total revenues of €1.24 billion ($1.28 billion), indicating a 39% growth from the prior-year quarter. Its operating profit amounted to €10.5 million ($10.84 million). The company’s net income came in at €198.1 million ($204.52 million) and €0.81 per share, up 23.3% and 22.7% year-over-year, respectively.
Per the 2024 financial year guidance, BNTX expects total revenue to be in the range of €2.5 billion to €3.1 billion.
Street expects BNTX’s revenue and EPS for the fourth quarter (ended December 2024) to come in at $1.20 billion and $0.39, respectively.
The stock has gained 48.4% over the past six months and 29.4% over the past nine months to close the last trading session at $117.61.
BNTX’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
It also has a B grade for Value, Sentiment, and Quality. Within the same industry, it is ranked #20 out of 340 stocks. Click here to see BNTX’s ratings for Growth, Momentum, and Stability.
Stock #1: Gilead Sciences, Inc. (GILD)
GILD is a biopharmaceutical company dedicated to advancing treatments for life-threatening diseases such as human immunodeficiency virus (HIV), viral hepatitis, COVID-19, and cancer. Its portfolio of marketed products includes Biktarvy, Genvoya, Odefsey, Truvada, Harvoni, Vemlidy, and Veklury, among others.
On January 11, GILD and LEO Pharma announced a strategic partnership to accelerate the development and commercialization of LEO Pharma’s small molecule oral STAT6 programs for the potential treatment of patients with inflammatory diseases. In this partnership, GILD will acquire LEO Pharma’s comprehensive preclinical oral STAT6 small molecule inhibitors and targeted protein degraders, and it will also help GILD expand its inflammation portfolio.
On December 3, GILD and Tubulis entered into an exclusive option and license agreement to discover and develop an antibody-drug conjugate (ADC) against a solid tumor target. Under this agreement, GILD will gain access to Tubulis’ proprietary Tubutecan and Alco5 platforms, and Tubulis will receive a payment of $20 million. This agreement will allow GILD to explore a range of solutions to help increase the therapeutic value of the ADC modality.
In the fiscal third quarter, which ended on September 30, 2024, GILD’s total revenues increased 7% year-over-year to $7.54 billion. The company reported a non-GAAP operating income of $3.26 billion, indicating a marginal growth from the prior-year quarter. GILD’s non-GAAP net income attributable came in at $2.53 billion, while its non-GAAP EPS amounted to $2.02.
According to the full-year guidance, GILD forecasts product sales to range from $27.80 billion to $28.10 billion. The company also expects non-GAAP EPS to be between $4.25 and $4.45.
Analysts expect GILD’s revenue and EPS for the current year (ended December 2024) to be $28.30 billion and $4.41, respectively. For the fiscal year 2025, its revenue and EPS are expected to grow marginally and 72.7% from the prior year to $28.42 billion and $7.61, respectively.
Over the past nine months, the stock has gained 46.7%, closing the last trading session at $96.04
GILD’s strong fundamentals are reflected in its POWR Ratings. It has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.
It has a B grade for Growth, Value, Sentiment, and Quality. The stock is ranked first in the Biotech industry. Click here to access the additional GILD ratings (Momentum and Stability).
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AMGN shares were trading at $293.50 per share on Monday afternoon, down $0.04 (-0.01%). Year-to-date, AMGN has gained 12.61%, versus a 3.19% rise in the benchmark S&P 500 index during the same period.
About the Author: ShreyaRathi
