The global biotechnology market is set for remarkable growth. It is forecast to soar from $1 trillion in 2022 to an impressive $3.6 trillion by 2032. This translates to a CAGR of 14%. Demand for innovative treatments and vaccines continues to surge, potentially unlocking exponential growth for well-positioned biotech companies.
Given the positive trends, investors can benefit from the rise in biotech stocks. I have identified three biotech stocks to buy that are well-positioned for growth in the next bull run.
Vertex Pharmaceuticals (VRTX)
Vertex Pharmaceuticals (NASDAQ:VRTX) is increasingly capturing the attention of growth-focused investors. In 2023, the company not only demonstrated solid financial performance but also saw its stock surge by 41%. This surge helped fuel the company’s diverse drug pipeline. The company plans to launch five new products by 2028. These include several candidates showing promising potential.
Vertex’s reported solid Q4 2023 earnings, with a 9.34% year-over-year increase in revenue. As the company continues to commercialize its products, investors can anticipate a positive impact on revenue growth and free cash flow. Analysts have an average price target of $465 on the stock, which presents a 12% upside.
Regeneron Pharmaceuticals (REGN)
Regeneron Pharmaceuticals (NASDAQ:REGN) stands out in the biotech landscape with its innovative approach to drug development. The company has successfully introduced several fully human monoclonal antibodies across various disease areas. EYLEA, its flagship eye disorder treatment, alongside Dupixent for allergic diseases and the COVID-19 treatment Ronapreve, underscore the company’s knack for producing high-impact therapies.
Regeneron’s recent Q4 2023 performance was impressive. The company reported a Non-GAAP EPS of $11.86, beating market expectations. Moreover, the recent approval of EYLEA HD underlines Regeneron’s commitment to maintaining its leadership in the therapeutic areas it serves.
Given Regeneron’s robust Q4 performance and strategic pipeline advancements, it’s clear that the company’s growth story is far from over. Wall Street analysts are bullish on the stock and have a price target of $1041. This provides a 7.6% upside potential in the near-term.
BioNTech (BNTX)
BioNTech (NASDAQ:BNTX) is known for its monumental success with the COVID-19 vaccine. As the immediate demand for COVID-19 vaccines wanes, BioNTech is setting its sights on broader horizons. The company is leveraging its expertise in mRNA technology to delve deeper into oncology. It is also working to develop innovative vaccines, signalling a strategic shift aimed at long-term growth and sustainability.
Additionally, BioNTech’s vaccine development pipeline is robust. The company is targeting a variety of diseases with significant global impact including herpes, shingles, malaria and tuberculosis. The ongoing clinical trials and strategic partnerships underline BioNTech’s role as an innovator in the vaccine domain, promising a future where its contributions extend well beyond the realm of COVID-19.
BioNTech’s stock has underperformed the broader market in 2024. However, analysts’ expectations remain high for the stock. The average price target is $123, leaving a 34% upside from current levels.
On the date of publication, Mohammed Saqib did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Mohammed Saqib is a research analyst with experience in equity research and financial modeling. He has extensively covered stocks listed in the tech sector using fundamental analysis as the cornerstone of his approach. Currently pursuing a master’s degree in finance, Saqib is dedicated to obtaining the CFA charter to augment his expertise in the field further.