Genomics, the study of genes and their functions, is no longer just a niche scientific pursuit; it’s reshaping how we understand human health and disease. Over the last two decades, gene sequencing costs have dropped significantly, making it more affordable, accurate, and faster to map a person’s entire genome. This shift is accelerating discoveries and laying the foundation for a new era of personalized medicine, where treatments are tailored to an individual’s genetic profile.
As this field continues to evolve, companies like Illumina, Inc. (ILMN), BioNTech SE (BNTX), and Bio-Techne Corporation (TECH) are leading the charge, unlocking the secrets of DNA to revolutionize healthcare.
The genomics industry is set for explosive growth, with the global market projected to grow from $39.53 billion in 2024 to $157.47 billion by 2033 at a CAGR of 16.6%. The sales of next-generation genomic medicines alone are expected to hit $84 billion by 2028, driven by successful clinical trials and the increasing demand for innovative treatments.
These advancements are fueling opportunities for investors, as companies at the forefront of this revolution are well-positioned to reap the rewards. With that in mind, let’s look at the fundamentals of the top Biotech stocks, beginning with the third choice.
Stock #3: Bio-Techne Corporation (TECH)
TECH develops, manufactures, and sells life science reagents, instruments, and services for the research, diagnostics, and bioprocessing markets globally. It operates through two segments: Protein Sciences; and Diagnostics and Genomics.
On December 10, the company announced a partnership with MedSanTek, which will serve as the distributor for TECH’s R&D Systems, Novus, Tocris, ProteinSimple, Advanced Cell Diagnostics (ACD), and Asuragen brands across Turkey. This agreement is expected to enhance revenues and broaden the company’s presence in the region.
On November 18, TECH announced a strategic partnership with ALZpath, Inc. to drive advancements in neurodegenerative disease research and treatment, including Alzheimer’s. The collaboration leverages Bio-Techne’s Ella™ fully automated, multiplexing immunoassay platform and ALZpath’s proprietary pTau217 antibody to provide the Simple Plex Human Phospho-Tau (T217) ALZpath Assay.
TECH’s trailing 12-month gross profit margin of 65.99% is 13.4% higher than the industry average of 58.20%. Likewise, its EBIT and levered FCF margins of 20.81% and 19.84% are considerably higher than their respective industry averages of 2.72% and 1.96%.
During the fiscal first quarter that ended September 30, 2024, TECH’s net sales increased 4.5% year-over-year to $289.46 million. Its adjusted gross margin grew marginally from the year-ago value to $199.59 million. Also, the company’s non-GAAP net earnings amounted to $67.53 million or $0.42 per share, indicating an increase of 2.3% and 2.4% year-over-year, respectively.
The consensus revenue estimate of $318.04 million for the fiscal third quarter (ending March 2025) represents a 4.8% year-over-year growth. The consensus EPS estimate of $0.51 for the ongoing quarter represents a 7.2% increase from the same period last year.
Shares of TECH have gained 8.7% over the past nine months to close the last trading session at $73.79.
TECH’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It has a B grade for Growth and Quality. TECH is ranked #34 among 336 stocks in the Biotech industry. Click here to access additional TECH ratings (Value, Momentum, Stability, and Sentiment).
Stock #2: BioNTech SE (BNTX)
Based in Mainz, Germany, BNTX is a biotechnology company that develops and commercializes immunotherapies for cancer and other infectious diseases. The company is developing FixVac product candidates, including BNT111, BNT112, BNT113, BNT115, and BNT116.
On November 13, BNTX announced the acquisition of Biotheus, a clinical-stage biotechnology company focused on innovative antibody therapies for oncological and inflammatory diseases. This strategic move aligns with BNTX’s global oncology strategy, granting it full rights to BNT327/PM8002, a bispecific antibody with the potential to surpass existing checkpoint inhibitors for solid tumors.
Moreover, through this acquisition, the company aims to enhance its ability to develop, produce, and commercialize next-generation bispecific antibodies and innovative treatment combinations.
BNTX’s trailing 12-month gross profit margin of 84.31% is 44.9% higher than the industry average of 58.20%. In addition, its trailing-12-month levered FCF margin of 46.24% compares to the industry average of 1.96%.
For the fiscal third quarter that ended September 30, 2024, BNTX’s total revenues increased 39% year-over-year to €1.24 billion ($1.28 billion). Its operating income came in at €10.50 million ($10.82 million). The company’s net profit and earnings per share for the period stood at €198.10 million ($204.19 million) and €0.81, up 23.3% and 22.7% year-over-year, respectively.
Analysts predict BNTX’s EPS and revenue for the fourth quarter (ended December 2024) to come in at $0.52 and $1.19 billion, respectively. Over the past six months, the stock has surged 45% to close the last trading session at $115.79.
It is no surprise that BNTX has an overall rating of B, equating to Buy in our POWR Ratings system. It also has a B grade for Value, Sentiment, and Quality. Out of 336 stocks in the same industry, it is ranked #19.
In addition to the POWR Rating grades I’ve just highlighted, you can see BNTX’s Growth, Momentum, and Stability ratings here.
Stock #1: Illumina, Inc. (ILMN)
ILMN offers sequencing- and array-based solutions for large-scale genetic and genomic analysis. It operates through the Core Illumina and GRAIL segments. It provides sequencing and array-based instruments and consumables, whole-genome sequencing kits, genotyping, NIPT, and product support services.
On November 19, the company unveiled plans to launch TruSight Oncology 500 v2 (TSO 500 v2), an upgraded version of its flagship cancer research assay designed for comprehensive genomic profiling (CGP). This advanced assay evaluates hundreds of genes across all variant classes and immuno-oncology biomarkers, providing critical insights for therapy selection research. Currently in development, TSO 500 v2 is set for a global release in mid-2025.
ILMN’s trailing 12-month gross profit margin of 67.61% is 16.2% higher than the industry average of 58.20%. Likewise, its 16.63% trailing-12-month EBITDA margin is 186.5% above the industry average of 5.80%. Also, its trailing 12-month levered FCF margin of 9.64% compares to the industry average of 1.96%.
In the third quarter that ended September 29, 2024, ILMN reported a total revenue of $1.08 billion with a gross margin of 68.9%. Its non-GAAP operating profit rose 162.4% from the year-ago value to $244 million. The company’s non-GAAP net income and EPS came in at $181 million and $1.14, indicating an improvement of 248.1% and 245.5% year-over-year, respectively.
Street expects ILMN’s EPS for the fiscal fourth quarter (ended December 2024) to increase 552.5% year-over-year to $0.91, while its revenue is forecasted to be $1.07 billion. Moreover, it surpassed the consensus revenue estimates in each of the trailing four quarters, which is impressive.
The stock has gained 29.2% over the past six months to close the last trading session at $136.01.
ILMN’s POWR Ratings reflect this promising outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
It has an A grade for Growth and a B for Quality. Within the Biotech industry, it is ranked #17. To see the other ILMN ratings for Value, Momentum, Stability, and Sentiment, click here.
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BNTX shares were trading at $120.51 per share on Monday afternoon, up $4.72 (+4.08%). Year-to-date, BNTX has gained 5.76%, versus a 2.16% rise in the benchmark S&P 500 index during the same period.
About the Author: Shweta Kumari
Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.
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