Top 10 Stocks to Watch in the Biotech Sector

Biotech stocks present both opportunity and risk. Small-cap biotech stocks may offer significant gains if their clinical trial results prove positive, which would make for exciting investment returns in this space.

Tessa Therapeutics has pioneered CAR-T therapies for blood cancer. These work by extracting T cells from patients, treating them with cancer-fighting proteins and then reinjecting them back into the body.

1. Exelixis

Exelixis’ robust balance sheet and multiple late-stage clinical trials give it plenty of room to expand. Already approved to treat advanced renal cell carcinoma and hepatocellular cancer, its cabozantinib drug is being explored for use against pancreatic neuroendocrine tumors as part of Cometriq treatment or in combination with Roche’s Tecentriq drug.

Discover what Exelixis’ intrinsic value is and compare it with that of its peers.

2. Intellia Therapeutics

Intellia Therapeutics’ clinical-stage genome editing programs hold tremendous promise to revolutionize medicine. Their most advanced program, NTLA-2001, seeks to treat transthyretin amyloidosis; while their second, NTLA-2002, may serve as an experimental therapy against hereditary angioedema.

Intellia holds an abundance of cash, equivalents, and marketable securities that could help it avoid dilutive financing measures in the future. Furthermore, Intellia has inked important partnerships.

3. Vertex Pharmaceuticals

With its promising growth prospects and promising dividend yield, this stock could make for a good long-term investment choice.

Vertex revolutionized cystic fibrosis treatment by creating a portfolio that actually treats its root cause – Trikafta has proven life-changing for patients living with this condition while creating billions in sales revenue for Vertex.

4. Gilead Sciences

Gilead could find renewed growth thanks to FDA approval of Seladelpar, a selective PPAR delta agonist expected to become a blockbuster drug within their HIV franchise.

Biotech company Exelixis also offers an attractive dividend, though recent EPS performance may indicate slower dividend growth in future years.

5. Biogen

Biogen is anticipating overall revenue decline this year; however, that could change if its new products like Aduhelm for Alzheimer’s disease and Skyclarys for Friedreich’s ataxia prove successful.

Biogen is actively exploring growth opportunities with several late-stage drugs across several therapeutic areas, including neurology, psychiatry, rare diseases and immunology. Click to see how the company rates on our Value, Quality and Momentum scale.

6. Vertex Pharmaceuticals

Biotech stocks may offer promising long-term growth potential due to new drug sales, yet can experience extreme price swings that lead to large gains or losses.

Vertex Pharmaceuticals is currently developing several drugs to treat cystic fibrosis. They’re also conducting gene therapy trials with two blood disorders using Nobel Prize-winning CRISPR technology; these clinical studies could qualify for Breakthrough Therapy or Fast Track designation by the FDA.

7. AbbVie

AbbVie still possesses significant growth potential despite Humira’s sales decline as biosimilar competitors gain steam, thanks to Skyrizi and Rinvoq being adopted by patients, as well as by adding neuroscience companies like Cerevel Therapeutics into its portfolio.

As part of its non-exclusive voluntary license for two compounds, generic supply is now available in 79 countries worldwide and it works closely with partners on neglected tropical diseases. Furthermore, its strong pipeline provides it with opportunities for further innovation.

8. Vertex Pharmaceuticals

Mohit Bansal assigns Vertex Pharmaceuticals an “buy” rating based on its potential for strong growth. With a leading position in cystic fibrosis treatments and growing pipeline for type-1 diabetes and acute pain treatments, Vertex stands out.

Exa-cel is designed to treat beta thalassemia and severe sickle cell disease, while Suzetrigine is being researched for acute and neuropathic pain, APOL1-mediated kidney disease and type 1 diabetes – in addition to work being done on developing T-cell therapy therapies for solid cancers.

9. AstraZeneca

Biotech stocks may seem risky investments, but when selected correctly they can yield great rewards. Companies offering drugs to treat diseases such as restless leg syndrome or sepsis have often fared particularly well in this market.

Viking Therapeutics has also won investors over, as its phase 3 results showed its drug modestly slowing Alzheimer’s disease progression and peak annual sales are projected to exceed $500 million.

10. Celgene

Biotech stocks possess high growth potential but may also be highly risky. Before investing in these companies, investors should carefully assess their own tolerance for risk.

Celgene’s growth largely relies on sales of blood cancer drug Revlimid, which represents over 60% of its revenue. But the company also boasts an attractive pipeline.

This company boasts an attractive valuation and could potentially have blockbuster drugs in its pipeline, as well as an Altimeter fundamental forensics score of B, making them less vulnerable to accounting irregularities.

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