The biotech sector is being revolutionized by emerging trends such as artificial intelligence, gene editing, precision medicine, and biomanufacturing, driving significant advancements in drug development and treatment options. These innovations are enabling companies to tackle complex diseases with more targeted and effective therapies.
As solid biotech stocks Amgen Inc. (AMGN), Gilead Sciences (GILD), and Biogen Inc. (BIIB) are capitalizing on these trends, with promising innovations focused on areas such as oncology, neurological disorders, and infectious diseases, these stocks could be ideal buys now. As these companies continue to leverage cutting-edge technologies like gene sequencing, synthetic biology, and tissue engineering, they are positioning themselves for long-term success in a rapidly evolving market.
The biotech industry is thriving this year, fueled by increased global healthcare spending, advancements in gene editing technologies such as CRISPR, and a growing demand for personalized medicine. These developments are driving innovation and creating opportunities for more targeted and effective therapies.
Precedence Research reports that the global biotechnology market, valued at $1.38 billion in 2023, is expected to expand at a CAGR of 11.5%, reaching approximately $4.61 billion by 2033.
Considering these positive developments, let's delve deeper into biotech stocks:
Stock #3: Amgen Inc. (AMGN)
AMGN is a global biotechnology leader specializing in therapeutics for conditions like osteoporosis, cancer, cardiovascular diseases, and autoimmune disorders. Its key products, such as Enbrel and Prolia, support healthcare providers worldwide in delivering comprehensive patient care.
On November 26, AMGN announced advancements in biotechnology, particularly in therapies for osteoporosis, cancer, cardiovascular, and autoimmune disorders. With flagship products like Enbrel and Prolia, it reinforces its market leadership, and likely boosts investor confidence and expands its healthcare provider network.
On November 14, AMGN presented new data, showcasing UPLIZNA®'s efficacy in reducing disease activity in IgG4-Related Disease and shorter infusion times for KRYSTEXXA® with methotrexate. This development strengthened Amgen’s rare disease portfolio, potentially boosting its market presence and investor interest.
It pays an annual dividend of $9, which translates to a dividend yield of 3.21% at the prevailing price levels.
During the fiscal third quarter that ended September 30, 2024, AMGN’s total revenues increased 23.2% year-over-year to $8.50 billion. Its non-GAAP operating income grew 18.8% from the year-ago value to $4.04 billion. In addition, the company’s non-GAAP net income and non-GAAP EPS came in at $3.02 billion and $5.58, up 13.4% and 12.5% over the prior-year quarter, respectively.
Analysts expect AMGN’s EPS and revenue for the fourth quarter ending December 31, 2024, to increase 6.8% and 8% year-over-year to $ 5.03 and $ 8.85 billion, respectively. It surpassed the Street EPS and revenue estimates in three of the trailing four quarters, which is promising.
Over the past year, the stock has gained 6% to close the last trading session at $280.07.
AMGN’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
AMGN has a B grade in Growth and Quality. It is ranked #13 out of 334 stocks in the Biotech industry.
Beyond what we have stated above, we also have given AMGN grades for Value, Momentum, Stability, and Sentiment. Get all the AMGN’s ratings here.
Stock #2: Biogen Inc. (BIIB)
BIIB is a global leader in developing and delivering therapies for neurological and neurodegenerative diseases, with a strong portfolio including treatments for multiple sclerosis (MS), Alzheimer's, and various cancers. Its collaborations with companies like Eisai, Genentech, and Samsung Bioepis further enhance its R&D efforts in innovative therapies and biosimilars.
On November 18, BIIB and Samsung Bioepis announced the European Commission's approval of OPUVIZ™ for treating retinal disorders. This approval is expected to increase access to affordable biologics across Europe, strengthening Biogen’s biosimilar portfolio and enhancing its market influence in ophthalmology.
On October 29, BIIB partnered with Neomorph to develop molecular glue degraders for Alzheimer’s, neurological, and immunological diseases, enhancing its innovative research pipeline.
In the fiscal third quarter ended September 30, 2024, BIIB’s total revenues amounted to $2.47 billion. It reported an income before income tax expense of $451 million, compared to a loss of $141.20 in the prior-year quarter. Moreover, non-GAAP net income attributable to Biogen Inc. and non-GAAP earnings per share stood at $595.70 and $4.08, respectively.
Street expects BIIB’s revenue and EPS for the fourth quarter ending December 31, 2024, to increase 1.4% and 16.2% year-over-year to $ 2.42 billion and $ 3.43, respectively. It surpassed the consensus EPS estimates in three of the trailing four quarters.
The stock has plunged 12.6% in the past month to close the last trading session at $159.83.
BIIB’s POWR Ratings reflect strong prospects. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
It has an A grade for Value and a B for Growth. It is ranked #8 in the same industry.
To access BIIB’s Momentum, Stability, Sentiment, and Quality ratings, click here.
Stock #1: Gilead Sciences, Inc. (GILD)
GILD is a biopharmaceutical company specializing in treatments for HIV/AIDS, COVID-19, viral hepatitis, oncology, and pulmonary hypertension. Its key products include Biktarvy, Veklury, and Yescarta, and it collaborates with several partners to advance research and innovative therapies.
On November 14, GILD announced the pricing of $3.5 billion in senior unsecured notes, with varying maturities from 2029 to 2064. The offering is expected to close on November 20, 2024, and will support the company's financial strategies and growth initiatives.
It pays an annual dividend of $3.08, which translates to a dividend yield of 3.33% at the prevailing price levels.
GILD’s total revenues increased 7% year-over-year to $7.55 billion in the fiscal third quarter that ended on September 30, 2024. Its non-GAAP operating income came in at $3.26 billion, up 1.1% year-over-year. Moreover, non-GAAP net income attributable to Gilead reached $2.53 billion and $2.02 per share, respectively.
Street expects GILD’s revenue for the fiscal fourth quarter (ending December 2024) to increase marginally year-over-year to $7.16 billion. Its EPS for the same quarter is likely to be $1.72. In addition, it surpassed the consensus revenue estimates in each of the trailing four quarters.
Shares of GILD have gained 23.3% over the past year and is up 14.1% year-to-date to close the last trading session at $ 92.41.
GILD’s bright prospects are apparent in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
It has an A grade for Value and Sentiment and a B for Growth and Quality. It tops the same industry.
Click here to see GILD’s ratings for Momentum and Stability.
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AMGN shares fell $2.07 (-0.74%) in premarket trading Friday. Year-to-date, AMGN has gained 0.18%, versus a 27.18% rise in the benchmark S&P 500 index during the same period.
About the Author: Kritika Sarmah
Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities.
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