Investors often seek outsized returns in the biotechnology sector through small-cap, early-stage companies. However, many mid and large-cap biotech companies have incredible pipelines, impressive financial performance, and long-term growth opportunities.
When looking beyond all the noise, it becomes clear who these market leaders are and why they might deliver substantial returns in the long term. If you can embrace the sector’s inherent risks, the potential rewards are undeniable.
Here are the three best breakout biotech stocks on track to double or more by 2032!
Halozyme Therapeutics (HALO)
Halozyme Therapeutics (NASDAQ:HALO) has carved a unique niche in the biotech landscape with its proprietary ENHANZE drug delivery platform. This technology allows for the rapid dispersion and absorption of large-volume injectable drugs, enhancing patient comfort and compliance.
Halozyme is undeniably considered one of the leading under-the-radar breakout biotech stocks in 2024. With a market capitalization of approximately $6.6 billion, the company is still relatively unknown in the biotech investing sphere. One of Halozyme’s key strategies is to form partnerships with major pharmaceutical companies. This approach to integrating its Enhanze technology into its drug formulations has boosted its revenue and earnings growth.
Partnerships with industry giants, including Roche, Pfizer, and Johnson & Johnson, underscore the potential of Enhanze to become a standard in drug delivery. In FY23, revenue increased 26% year-over-year to $829 million. Earnings per share swelled 46% YOY to $2.10 per share, and the company announced a new $750 million share repurchase program. With strong double-digit growth in revenue and adjusted EBITDA in FY24, HALO stock is among the best breakout biotech stocks to double your money by 2032.
Novo Nordisk (NVO)
Novo Nordisk (NYSE:NVO) is a global leader in diabetes care, with a comprehensive portfolio of insulin therapies and GLP-1 receptor agonists. The company has witnessed monster growth over the last several years, driven by strong demand for GLP-1 therapies.
Novo Nordisk’s unwavering commitment to research and development has led to the creation of groundbreaking treatments like Ozempic and WeGovy. These drugs have revolutionized the management of obesity and type 2 diabetes, catering to the growing global diabetes epidemic. As the prevalence of these chronic conditions continues to rise globally, Novo Nordisk is well-positioned to capitalize on the growing demand.
Moreover, In FY23, revenue increased 31% YOY to a record $232.3 billion. Earnings per share skyrocketed 52% YOY to $18.62 per share, with GLP-1 therapies growing 52% from the year prior. Moreover, obesity care sales swelled an astonishing 154% YOY. Regarding market dominance, Novo Nordisk holds that title handsomely, with a more than 55% market share in GLP-1 therapies. As revenue, earnings, and free cash flow accelerate, NVO stock is one of the best breakout biotech stocks to get filthy rich.
Vertex Pharmaceuticals (VRTX)
Vertex Pharmaceuticals (NASDAQ:VRTX) has established itself as a pioneer in treating cystic fibrosis (CF) with a portfolio of highly effective therapies. While this is the company’s primary growth driver, it also has a number of new pipeline opportunities.
Vertex Pharmaceuticals’ breakthrough therapies include Trikafta, Kalydeco, Orkambi, and Symdeko. These therapies have transformed the lives of thousands of CF patients worldwide. Its success in CF treatment has generated substantial revenues for the company and provided a solid foundation for expanding its therapeutic focus. The company is leveraging its expertise in precision medicine to explore treatments for other diseases. This includes sickle cell disease, beta-thalassemia, and acute pain management.
In its latest quarterly financial results, revenue increased 13% YOY to $2.7 billion. Net earnings rose 57% YOY to $1.1 billion, or $4.21 per share. Management continues to execute strategic priorities, including advancing its VX-548 treatment, which is nearly on the brink of FDA approval. This could open up new growth opportunities, further driving top-line growth and profitability through 2032.
On the date of publication, Terel Miles did not have (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.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.
Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.