Propelled by rising investments, increasing M&A activities and collaboration, and rapid technological advancements, the biotechnology market is experiencing robust growth and expansion. Further, as the biotech industry evolves, its scope and scale expand to open new opportunities, strongly favoring its prospects.

Considering the industry’s bright outlook, it could be wise to invest in innovative biotech stocks Regeneron Pharmaceuticals, Inc. (REGN), Biogen Inc. (BIIB), and Gilead Sciences Inc. (GILD) for potential gains.

Likewise, in 2024, when the biotechnology market witnessed key developments like the approval of CRISPR-based therapy and cell and gene therapy, groundbreaking advancements and avenues will open, the year 2025 will continue to revolutionize the healthcare industry and create sustainable alternatives. Also, the trend of strategic collaboration and M&A among leading biotech companies will continue.

Further, in 2025, investments in cutting-edge technologies like Artificial Intelligence (AI) will continue to grow. The growth of the biotech industry is also expected to be navigated by increasing developments and activities towards precision medicine. Further, approval and adoption of GLP-1 receptor agonists, like Semaglutide and Tirzepatide, will significantly contribute to the market expansion.

The global biotechnology market is expected to reach $8.01 trillion by 2035, exhibiting growth at a CAGR of 16% driven by innovation, transformative applications, the development of cutting-edge vaccines and therapies, and the adoption of advanced technologies.

Also, ongoing technological innovations leading to the development of scientific disciplines, like genomics, metabolomics, and proteomics, are helping to address a wide range of issues.

With these encouraging trends in mind, let’s delve into the fundamentals of the three top Biotech stock picks, beginning with the third choice.

Stock #3: Regeneron Pharmaceuticals, Inc. (REGN)

REGN discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases globally. The company’s products include EYLEA, myopic choroidal neovascularization, diabetic retinopathy, neovascular glaucoma, and retinopathy of prematurity.

On December 19, REGN announced positive Phase 2 results for two novel monoclonal antibodies, REGN7508 and REGN9933, targeting distinct domains of Factor XI. The antibodies demonstrated strong antithrombotic effects with no clinically relevant bleeding, offering promising anticoagulant options for patients at varying bleeding risks.

During the third quarter that ended September 30, 2024, REGN’s total revenue rose 10.6% year-over-year to $3.72 billion. Its income from operations grew 6.2% from the year-ago value to $1.18 billion. The company’s non-GAAP net income came in at $1.46 billion or $12.46 per share, indicating 10% and 7.5% increases from the prior year’s quarter, respectively.

Street expects REGN’s revenue and EPS for the first quarter (ending March 2025) to increase 13.3% and 10.1% year-over-year to $3.56 billion and $10.51, respectively. Furthermore, the company has topped the consensus revenue and EPS estimates in three of the trailing four quarters, which is impressive.

Over the past month, REGN’s stock has declined 6.4% to close the last trading session at $730.30.

REGN’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

REGN has a B grade for Value, Sentiment, and Quality. It is ranked #22 out of 338 stocks in the Biotech industry.

In addition to the POWR Ratings we’ve stated above, we also have REGN’s ratings for Growth, Momentum, and Stability. Get all REGN ratings here.

Stock #2: Biogen Inc. (BIIB)

BIIB discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases internationally. Its products include TECFIDERA, VUMERITY, AVONEX, PLEGRIDY, TYSABRI, and FAMPYRA for multiple sclerosis (MS), SPINRAZA, ADUHELM, FUMADERM, BENEPALI, IMRALDI, FLIXABI, and BYOOVIZ.

On November 18, BIIB and Samsung Bioepis Co., Ltd. announced that the European Commission (EC) has approved OPUVIZ™ 40 mg/mL solution for injection in a vial, a biosimilar referencing Eylea (aflibercept), developed and registered by Samsung Bioepis. The EC approval reflects a major step for the companies toward expanding access to vital biologic therapies for the needy.

On October 29, BIIB and Neomorph Inc. announced a research collaboration for discovering and developing molecular glue degraders for priority targets in Alzheimer’s, rare neurological, and immunological diseases. The multi-target collaboration aims to discover and develop clinical candidates for molecular glue degrader for priority targets.

For the third quarter that ended September 30, 2024, BIIB reported total revenues of $2.47 billion, and the company’s income before income tax expense came in at $451 million for the same period. Also, non-GAAP total net income attributable to BIIB and EPS were $595.70 million and $4.08 for the quarter, respectively.

Analysts expect BIIB’s revenue and EPS for the fourth quarter (ended December 2024) to grow 1.3% and 16% year-over-year to $2.42 billion and $3.42, respectively. Also, the company topped the consensus EPS estimate in three of the trailing four quarters.

Shares of BIIB have plunged 2.1% over the past month to close the last trading session at $153.15.

BIIB’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.

The stock has an A grade for Value and a B for Growth. Within the Biotech industry, BIIB is ranked #19 of 338 stocks.

Click here to access additional ratings of BIIB for Quality, Momentum, Sentiment, and Stability.

Stock #1: Gilead Sciences Inc. (GILD)

GILD is an international biopharmaceutical company engaged in discovering, developing, and commercializing medicines in the areas of unmet medical needs. The company offers products like Biktarvy, Genvoya, Descovy, and Odefsey for treating HIV/AIDS, Veklury for COVID-19, and Epclusa for viral hepatitis.

On December 17, GILD and Terray Therapeutics, Inc. entered into a strategic collaboration aimed at discovering and developing innovative small molecule therapies targeting multiple diseases. The partnership aims to leverage next-generation, AI-driven platforms to shape drug discovery and offer innovative treatments across various therapeutic areas.

On the same date, GILD’s Trodelvy® (sacituzumab govitecan-hziy) was granted Breakthrough Therapy Designation by the U.S. FDA. Trodelvy® is helpful for the treatment of adult patients with extensive-stage small cell lung cancer (ES-SCLC) whose disease has progressed on or after platinum-based chemotherapy.

GILD reported total revenues of $7.55 billion during the third quarter, which ended September 30, 2024. The company’s non-GAAP operating income grew 1.1% from the year-ago value to $3.26 billion. Non-GAAP net income attributable to GILD and non-GAAP EPS amounted to $2.53 billion and $2.02 for the quarter, respectively.

In addition, the company’s free cash flow increased 155.3% from the prior year’s quarter to $4.17 billion.

As per the updated fiscal full-year 2024 guidance, GILD expects a non-GAAP projected operating income of $8 billion – $8.30 billion, and its non-GAAP EPS is expected between $4.25 and $4.45.

Street expects GILD’s revenue for the fiscal year (ending December 2025) to increase marginally year-over-year to $28.40 billion, while its EPS for the same year is expected to grow 71.6% year-over-year to $7.56. Moreover, the company has surpassed the consensus revenue estimates in each of the trailing four quarters.

Shares of GILD have surged 34.2% over the past six months and 7.9% over the past year to close the last trading session at $90.63.

GILD’s POWR Ratings reflect its bright prospects. The stock has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.

The stock has a B grade for Value, Growth, Sentiment, and Quality. GILD has topped among the 338 stocks in the same industry.

Click here to access additional ratings of GILD for Momentum and Stability.

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GILD shares were trading at $90.14 per share on Wednesday morning, down $0.49 (-0.54%). Year-to-date, GILD has declined -2.41%, versus a 0.38% rise in the benchmark S&P 500 index during the same period.

About the Author: Rjkumari Saxena

Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions. More...

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