The genomic industry is revolutionizing the healthcare industry by driving advancements in precision medicine. Companies in this sector focus on genetic sequencing, diagnostics, and targeted therapies, allowing for more personalized treatment plans based on an individual's genetic makeup.
Amid this favorable backdrop, investors could consider adding strong pharma stocks: Vertex Pharmaceuticals Incorporated (VRTX), Regeneron Pharmaceuticals, Inc. (REGN), and Illumina, Inc. (ILMN).
Gene editing technologies are enabling scientists to correct genetic disorders at their source, offering potential cures for diseases that were previously considered untreatable. Pharmaceutical and biotech firms investing in CRISPR, RNA-based therapies, and cell engineering are positioned for strong growth as these technologies gain regulatory approvals and market acceptance.
Also, the CRISPR genomic cure market is expected to reach $11.71 billion by 2030, growing at a CAGR of 20.5%. This is due to growing investments in gene therapy research and a rising focus on precision medicine to treat chronic diseases.
Cutting-edge gene editing tools, such as CRISPR-Cas9, offer precise ways to modify genes, which promises to transform healthcare by examining disease causes. Hence, governments and private institutions worldwide are also allocating significant resources to genomic research, recognizing its potential to reshape the future of medicine.
However, as per Precedence Research, the global precision medicine market is valued at $119.03 billion in 2025 and is expected to reach around $470.53 billion by 2034, expanding at a CAGR of 16.5%.
Considering these conducive trends, let’s take a look at the fundamentals of the three Biotech stocks:
Stock #3: Vertex Pharmaceuticals Incorporated (VRTX)
VRTX is a global biotechnology company that focuses on developing and commercializing therapies for treating cystic fibrosis (CF). It markets four approved medicines: TRIKAFTA/KAFTRIO, SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO.
On January 31, VRTX announced a reimbursement agreement with NHS England for eligible sickle cell disease (SCD) patients to access the CRISPR/Cas9 gene-edited therapy, CASGEVY®. This CRISPR/Cas9 gene-edited therapy is the second of the medicines funded by NHS England’s Innovative Medicines Fund following the prior agreement for TDT patients.
In the same week, VRTX received approval from the U.S. Food and Drug Administration (FDA) for JOURNAVX™, an oral, non-opioid, highly selective NaV1.8 pain signal inhibitor for the treatment of adults with moderate-to-severe acute pain. This drug is a non-opioid treatment without any addictive potential approved in more than 20 years.
For the third quarter of 2024, which ended on September 30, VRTX’s product revenues increased 11.6% year-over-year, amounting to $2.77 billion. The company reported a non-GAAP operating income of $1.31 billion, indicating an 11.4% increase from the prior-year quarter.
In addition, VRTX’s non-GAAP net income came in at $1.14 billion, up 7.5% year-over-year, while its non-GAAP net income per share grew 7.4% from the year-ago value to $4.38.
Analysts expect VRTX’s revenue to increase 10.2% for the fiscal year (ended December 2024) to $10.88 billion and its EPS to be $0.48, respectively. For the fiscal year 2025, its revenue is expected to increase 8.7% year-over-year to $11.83 billion, while its EPS is forecasted to settle at $18.78, indicating a significant improvement over the prior year.
VRTX’s stock has surged 17.5% over the past nine months and 14.7% over the past month to close the last trading session at $461.68.
VRTX’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.
VRTX has a B grade for Value. It is ranked #35 out of 335 stocks in the Biotech industry. Click here to see the additional ratings for VRTX (Growth, Momentum, Stability, Sentiment, and Quality).
Stock #2: Regeneron Pharmaceuticals, Inc. (REGN)
REGN discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases worldwide. The company’s products include EYLEA injection, Dupixent Injection, Libtayo Injection, Praluent Injection, Kevzara Injection, and others.
On January 13, REGN announced a strategic collaboration with Truveta, Inc., and its collective of U.S. health systems to advance innovation and data-driven discovery across the life sciences, public health, and healthcare delivery ecosystem.
In this collaboration, REGN will be investing $119.5 million in Truveta’s Series C Financing Round and launch the Truveta Genome Project extending Regeneron Genetics Center’s® (RGCTM) world-leading DNA sequence-linked healthcare database.
On December 9, REGN announced new and positive data for odronextamab monotherapy in patients with previously untreated follicular lymphoma with twelve abstracts spanning several B-cell non-Hodgkin lymphoma (B-NHL) subtypes. It demonstrates the effectiveness of the paradigm-changing potential of the odronextamab development program.
As per Elizabeth Brém, Associate Clinical Professor, Division of Hematology/Oncology at UC Irvine, “The OLYMPIA-1 Phase 3 trial is designed to explore a novel, chemotherapy-free, fixed duration treatment that is being studied in the outpatient setting in patients with previously untreated follicular lymphoma.”
REGN, for the third quarter (ended September 30, 2024), reported total revenues of $3.72 billion, indicating a 10.6% growth from the prior-year period. Its income from operations increased 6.2% year-over-year to $1.18 billion. The company’s non-GAAP net income came in at $1.46 billion and $12.46 per share, up 10% and 7.5% year-over-year, respectively.
The consensus revenue estimate of $3.48 billion for the fiscal first quarter (ending March 2025) represents a 10.7% increase year-over-year. The consensus EPS estimate of $10.26 for the same quarter indicates a 7.5% 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.
The stock has declined marginally intraday to close the last trading session at $672.98.
REGN’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 Quality. Within the same industry, it is ranked #24 out of 335 stocks. Click here to see REGN’s ratings for Growth, Momentum, Stability, and Sentiment.
Stock #1: Illumina, Inc. (ILMN)
ILMN engages in sequencing- and array-based solutions for genetic and genomic analysis internationally. It operates through two segments: Core Illumina and GRAIL. It provides sequencing and array-based instruments and consumables, whole-genome sequencing kits, genotyping, NIPT, and product support services.
On January 13, ILMN announced a collaboration with NVIDIA Corporation (NVDA) to advance technology platforms for the analysis and interpretation of multiomic data, accelerating progress in clinical research, genomics AI development, and drug discovery. This collaboration combines ILMN’s sequencing technologies and Illumina Connected Software with NVIDIA tools to develop biological foundation models and deliver total workflow solutions for customers.
In the fiscal third quarter, which ended on September 29, 2024, ILMN’s total revenue amounted to $1.08 billion. Its gross profit rose 8.9% from the year-ago value to $745 million. Moreover, its income from operations came in at $741 million compared to a year-ago net loss of $754 million. The company’s net income stood at $705 million compared to the prior-year quarter’s loss of $754 million, while its EPS came in at $4.42 versus a loss of $4.77 per share last year.
Street expects ILMN’s EPS for the fiscal year (ended December 2024) to increase 379.8% year-over-year to $4.13 and its revenue to be $4.34 billion. For the fiscal year 2025, its revenue and EPS are expected to register a marginal and 7.9% growth from the prior year, settling at $4.40 billion and $4.45, respectively.
Over the past six months, the stock has gained 8.3%, closing the last trading session at $132.74.
ILMN’s strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, which equates to a Buy in our proprietary rating system.
It has an A grade for Growth and a B for Quality. The stock is ranked #16 in the Biotech industry. Click here to access the additional ILMN ratings for Value, Momentum, Stability, and Sentiment.
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VRTX shares were trading at $469.89 per share on Monday afternoon, up $8.21 (+1.78%). Year-to-date, VRTX has gained 16.68%, versus a 2.26% rise in the benchmark S&P 500 index during the same period.
About the Author: ShreyaRathi
