Biotech giant Moderna, Inc. (MRNA) missed consensus revenue and EPS estimates by 4.6% and 18.6%, respectively, for its third quarter that ended September 30, 2022. Its total revenue came in at $3.36 billion, down 32.3% year-over-year, and its EPS came in at $2.53, down 67.1% year-over-year.
Moreover, its revenue and EPS are expected to decline 32.6% and 57.5% year-over-year to $4.86 billion and $4.80 for the quarter ending December 2022. In addition, the stock has lost 21.7% over the past year and 17.3% year-to-date.
However, amid rising medical needs, the biotech industry is expected to thrive in the coming terms. According to Data Bridge Market Research, the biotechnology market is expected to grow at a CAGR of 29% from 2023 to 2030.
Moreover, investors’ interest in biotech stocks is evident from the SPDR S&P Biotech ETF’s (XBI) 3.4% returns in the past month.
Therefore, investors looking to benefit from the industry’s favorable growth prospects could consider buying quality biotech stocks Biogen Inc. (BIIB) and Jazz Pharmaceuticals plc (JAZZ) instead of MRNA.
Biogen Inc. (BIIB)
BIIB discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases.
On December 19, 2022, BIIB agreed with Genentech, a Roche Group member, on the commercialization and sharing of economics for glofitamab. Glofitamab is an investigational CD20xCD3 T-cell engaging bispecific antibody being developed by Roche for the treatment of B-cell non-Hodgkin’s lymphomas. BIIB is expected to register substantial revenue growth with the sale of glofitamab.
BIIB’s revenue from anti-CD20 therapeutic programs came in at $416.90 million for the third quarter that ended September 30, 2022, up marginally year-over-year. Its net income came in at $1.13 billion, up 244.7% year-over-year, while its EPS came in at $7.84, up 253.2% year-over-year.
Analysts expect BIIB’s revenue to be $2.44 billion for the quarter ending December 2022. Its EPS is expected to increase 2.7% year-over-year to $3.48 for the same period. It surpassed EPS estimates in three of four trailing quarters. Over the past year, the stock has gained 22.3% to close the last trading session at $286.86.
BIIB’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which indicates a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
BIIB has an A grade for Value, Sentiment, and Quality. In the Biotech industry, it is ranked #7 out of 375 stocks. Click here for the additional POWR Ratings for Growth, Momentum, and Stability for BIIB.
Jazz Pharmaceuticals plc (JAZZ)
Headquartered in Dublin, Ireland, biopharmaceutical company JAZZ identifies, develops, and commercializes pharmaceutical products for various unmet medical needs in the United States, Europe, and internationally.
On December 21, 2022, JAZZ and Zymeworks Inc. (ZYME) announced their agreement. JAZZ will continue with its exclusive development and commercialization rights to ZYME’s zanidatamab in key markets of the U.S., Europe, and Japan.
Rob Iannone, M.D., M.S.C.E., executive vice president, global head of research and development of JAZZ, said, “This important milestone strengthens our confidence in advancing this therapy for cancer patients with significant unmet need.”
JAZZ’s total revenues came in at $940.65 million for the third quarter that ended September 30, 2022, up 12.2% year-over-year. Its non-GAAP net income came in at $370.44 million, up 41.7% year-over-year, while its non-GAAP EPS came in at $5.17, up 23.1% year-over-year.
For 2022, JAZZ’s revenue is expected to increase 18.3% year-over-year to $3.66 billion. Its EPS is expected to increase 9% year-over-year to $17.69 in 2022. It surpassed EPS estimates in three of four trailing quarters. Over the past year, the stock has gained 25.3% to close the last trading session at $158.46.
JAZZ has an overall A rating, equating to a Strong Buy in our proprietary rating system. In addition, it has an A grade for Value and a B for Growth and Sentiment. JAZZ is ranked #5 in the same industry. Click here for the additional POWR Ratings for JAZZ (Momentum, Stability, Quality).
BIIB shares rose $0.74 (+0.26%) in premarket trading Thursday. Year-to-date, BIIB has gained 19.56%, versus a -17.36% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.
2 Biotech Stock to Buy Over Moderna This December StockNews.com
