The gene therapy sector is at the forefront of transforming healthcare by offering treatments that target diseases at their genetic root. These companies are pioneering approaches that promise to cure or significantly ameliorate conditions once deemed incurable.
As this sector continues to innovate and secure regulatory approvals, adding fundamentally sound gene therapy stocks such as Pfizer Inc. (PFE), Sanofi (SNY), and Novartis AG (NVS) to your portfolio could be wise.
The development of gene therapies has accelerated in recent years, driven by technological advancements and significant investments in research and development. Also, their innovative therapies, which include the use of viral vectors and CRISPR-based editing, represent a paradigm shift in medical treatment.
More pharma companies are focusing on diseases ranging from rare genetic disorders to complex conditions like cancer, where targeted treatments can lead to better patient outcomes. The global gene therapy market is anticipated to reach $57.13 billion by 2034, growing at a CAGR of 18.5%.
Moreover, regulatory support also plays a key role in bolstering the gene therapy sector. Such streamlined approval processes and incentives like orphan drug designations encourage companies to market breakthrough treatments. So far, in 2025, the U.S. Food and Drug Administration (FDA) has approved four novel drugs. This favorable regulatory environment enhances the growth prospects of gene therapy.
Considering these conducive trends, let’s take a look at the fundamentals of the three Medical - Pharmaceuticals stocks, starting with the third one:
Stock #3: Pfizer Inc. (PFE)
PFE is a global leader in biopharmaceuticals, offering a wide range of medicines and vaccines across several therapeutic areas. Its diverse portfolio spans treatments for cardiovascular conditions, metabolic issues, migraines, women's health, and infectious diseases, including COVID-19 prevention and treatment. It also explores future mRNA and antiviral therapies and provides biosimilars for chronic immune and inflammatory conditions.
On February 12, PFE announced that it received approval from the FDA for the supplemental Biologics License Application (sBLA) for ADCETRIS® in combination with lenalidomide and a rituximab product for the treatment of adult patients with relapsed or refractory large B-cell lymphoma.
As per Roger Dansey, M.D., Chief Oncology Officer at Pfizer, this approval “reinforces the important role of ADCETRIS as an existing standard of care with overall survival improvement shown for certain types of lymphomas, and now allows physicians to have an option beyond chemotherapy.”
On December 20, PFE received approval from the FDA for BRAFTOVI® (encorafenib) in combination with cetuximab and mFOLFOX6 for the treatment of patients with BRAF V600E-Mutant metastatic colorectal cancer. This approval is first-in-line for developing innovative medicines for the hardest-to-treat cancers and expanding PFE’s portfolio.
PFE's total revenues for the fourth quarter (ended December 31, 2024) increased 21.9% year-over-year to $17.76 billion. Its income from continuing operations came in at $411 million compared to the prior-year quarter’s loss of $3.33 billion. The company’s adjusted net income and adjusted EPS attributable stood at $3.59 billion and $0.63, up 505.7% and 530% year-over-year, respectively.
Analysts expect PFE’s revenue and EPS for the current year (ending December 2025) to be $63 billion and $2.95, respectively. For the fiscal year 2026, its revenue and EPS are expected to grow marginally, and 3.6% from the prior year to $63.21 billion and $3.06, respectively.
Shares of PFE have surged 3.2% over the past three months to close the last trading session at $25.90
PFE’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.
PFE has a B grade for Growth and Value. It is ranked #35 out of 152 stocks in the Medical - Pharmaceuticals industry. Click here to see the additional ratings for PFE (Momentum, Stability, Sentiment, and Quality).
Stock #2: Sanofi (SNY)
Based in Paris, France, SNY is a healthcare company that engages in the research, development, manufacture, and marketing of therapeutic solutions internationally. The company provides immunology and inflammation, rare diseases, neurology, oncology, and other medicines and vaccines.
On January 31, SNY announced that the National Medical Products Administration (NMPA) in China approved Sarclisa, in combination with a standard-of-care regimen, bortezomib, lenalidomide, and dexamethasone (VRd), for the treatment of adult patients with newly diagnosed multiple myeloma ineligible for transplant. This approval is based on the positive results from the IMROZ phase 3 study that have the potential to improve outcomes across lines of therapy.
In the same month, SNY announced that it received approval from the EU for Sarclisa in combination with a standard-of-care regimen, bortezomib, lenalidomide, and dexamethasone (VRd), for the treatment of adult patients with Newly Diagnosed Multiple Myeloma (NDMM) ineligible for autologous stem cell transplant. This approval is the first anti-CD38 therapy in combination with VRd in this patient population in the EU.
For the fourth quarter that ended December 31, 2024, SNY’s net sales increased 9.1% year-over-year to €10.56 billion ($11.04 billion). Its gross profit rose 5.4% from the year-ago value to €7.84 billion ($8.20 billion). The company’s operating income amounted to €1.18 billion ($1.12 billion), representing a 208.6% increase from the same quarter last year.
In addition, SNY’s net income stood at €695 million ($726.58 million) compared to the prior-year quarter’s loss of €558 million ($583.35 million), while its EPS came in at €0.54 versus a loss of €0.44 per share last year.
Street expects SNY’s revenue for the fiscal year (ending December 2025) to increase 15.2% year-over-year to $49.25 billion. Its EPS for the same year is expected to register a 38.6% growth from the prior year, settling at $5.14.
SNY shares have gained 15.5% over the past year and 13.3% over the past three months, closing the last trading session at $54.13.
SNY’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 and Stability. Within the same industry, it is ranked #20 out of 152 stocks. Click here to see SNY’s ratings for Growth, Momentum, Sentiment, and Quality.
Stock #1: Novartis AG (NVS)
Headquartered in Basel, Switzerland, NVS is a pharmaceutical company that engages in the research, development, manufacture, distribution, marketing, and sale of pharmaceutical medicines worldwide through two segments: Innovative Medicines and Sandoz.
On February 11, NVS entered into an agreement to acquire Anthos Therapeutics, Inc., a Boston-based, privately held, clinical-stage biopharmaceutical company with abelacimab, a late-stage medicine in development for the prevention of stroke and systemic embolism in patients with atrial fibrillation for $925 million upfront.
This acquisition is for a potential first-in-class monoclonal antibody that targets the FXI inhibition pathway, which will help NVS’ growth strategy and strengthen its expertise in the cardiovascular area.
On November 27, NVS announced that the European Commission (EC) had approved Kisqali® (ribociclib) in combination with an aromatase inhibitor (AI) for the adjuvant treatment of patients with hormone receptor (HR)-positive, human epidermal growth factor receptor 2 (HER2)-negative early breast cancer (EBC) at high risk of recurrence. This approval will allow physicians to have a new option to help reduce the risk of recurrence in a broader population of patients.
During the fourth quarter ended December 31, 2024, NVS’ net sales from continuing operations increased 15.1% year-over-year to $13.15 billion, while its gross profit from continuing operations improved by 16.9% from the prior year’s value to $10.23 billion.
Its core operating income continuing operations came in at $4.86 billion, up 27.2% year-over-year. The company’s core net income from continuing operations rose 25.8% from the year-ago value to $3.93 billion, while its core EPS stood at $1.98, up considerably year-over-year.
The consensus revenue estimate of $12.88 billion for the fiscal first quarter (ending March 2025) represents an 8.9% increase year-over-year. The consensus EPS estimate of $2.05 for the about-to-be-reported quarter indicates a 14.1% improvement year-over-year. The company has an excellent surprise history; it surpassed the consensus revenue and EPS estimates in each of the trailing four quarters.
Over the past month, the stock has gained 10%, closing the last trading session at $107.31.
NVS’ strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.
NVS has a B grade for Growth, Value, Stability, Sentiment, and Quality. It is ranked first in the Medical - Pharmaceuticals industry. Click here to see the additional NVS ratings for Momentum.
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NVS shares were trading at $109.40 per share on Friday afternoon, up $2.09 (+1.95%). Year-to-date, NVS has gained 12.42%, versus a 2.72% rise in the benchmark S&P 500 index during the same period.
About the Author: ShreyaRathi
