The pandemic brought the biotech industry into the limelight as companies rushed to launch a potential COVID-19 vaccine. Moreover, rising medical needs and chronic diseases are expected to drive more research and development in the biotech sector.
Biomanufacturing is also an integral part of the biotech industry. Frances Arnold, the President's Council of Advisors on Science and Technology's co-chair, said, "Biomanufacturing is integral to solutions for many of our national and global challenges, including resource utilization, climate change, economic stability, environmental justice, and improved health."
Furthermore, the biotechnology market is expected to grow at a CAGR of 29% until 2030. Investors' interest in biotech stocks is evident from the iShares Biotechnology ETF's (IBB) 21.3% gains over the past six months.
Biotech tends to hold up relatively well during downturns, like other healthcare sectors. Given the backdrop, investors might buy quality biotech stocks Gilead Sciences, Inc. (GILD), Biogen Inc. (BIIB), and Jazz Pharmaceuticals plc (JAZZ) to build a healthy portfolio.
Gilead Sciences, Inc. (GILD)
Biopharmaceutical company GILD discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally for over three decades.
On November 29, 2022, GILD announced that the European Commission (EC) approved a new low-dose tablet dosage form of Biktarvy and an extension of the indication for Biktarvy to treat HIV infection in virologically suppressed children who are at least two years old and weigh at least 14 kg.
This should boost GILD's effort to fight the HIV epidemic by expanding the available therapeutic alternatives to assist children's access to care and their HIV treatment options.
GILD's trodelvy's sales came in at $180 million for the third quarter that ended September 30, up 78.2% year-over-year. The company's current liabilities came in at $10.42 billion for the period ended September 30, 2022, compared to $11.61 billion for the period ended December 31, 2021.
Also, its total liabilities and equity came in at $62.56 billion, compared to $67.95 billion for the same period.
Street expects GILD's EPS to increase 115.9% year-over-year to $1.49 for the quarter ending December 2022. It surpassed EPS estimates in three of the four trailing quarters. Over the past nine months, the stock has gained 52.7% to close the last trading session at $88.54.
GILD's strong fundamentals are reflected in its POWR Ratings. The stock's overall A rating indicates a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
GILD has an A grade for Sentiment and a B for Value and Quality. In the Biotech industry, it is ranked #3 out of 374 stocks. Click here for the additional POWR Ratings for Stability, Growth, and Momentum for GILD.
Biogen Inc. (BIIB)
Biotech company BIIB discovers, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases.
On October 13, 2022, BIIB and GoodRx Holdings, Inc. (GDRX), a leading consumer-focused digital healthcare platform, established a partnership to improve the patient and healthcare provider (HCP) experience when beginning a new specialized therapy. The association might help expand its consumer base.
BIIB's net income came in at $1.13 billion for the third quarter that ended September 30, 2022, up 256.8% year-over-year. Moreover, its EPS came in at $7.84, up 253.2% year-over-year. Its total assets came in at $24.85 billion for the period ended September 30, 2022, compared to $23.88 billion for the period ended December 31, 2021.
BIIB's EPS is expected to increase 9.7% year-over-year to $3.97 for the quarter ending March 2023. It surpassed EPS estimates in three of four trailing quarters. Over the past six months, the stock has gained 47% to close the last trading session at $290.59.
BIIB's overall A rating equates to a Strong Buy in our POWR Ratings system. It has an A grade for Value and Quality and a B for Sentiment. The stock is ranked #7 in the same industry.
We've also rated BIIB for Stability, Momentum, and Growth. Get all BIIB ratings here.
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 November 18, 2022, JAZZ announced the approval of a supplemental Biologics License Application by the U.S. Food and Drug Administration for Monday/Wednesday/Friday (MWF) intramuscular (IM) dosing schedule for Rylaze, which is approved for use in the U.S. as a component of a multi-agent chemotherapeutic regimen for the treatment of acute lymphoblastic leukemia (ALL) and lymphoblastic lymphoma (LBL).
JAZZ's total revenue came in at $940.65 million for the third quarter that ended September 30, 2022, up 12.7% year-over-year. Moreover, its net product sales came in at $935.77 million, up 12.2% year-over-year. Its total liabilities came in at $10.38 billion for the period September 30, 2022, compared to $12.98 billion for the period ended December 31, 2021.
JAZZ's revenue is expected to increase 8.3% year-over-year to $970.93 million for the quarter ending December 2022. Its EPS is expected to increase 5.5% year-over-year to $4.44 for the quarter ending December 2022. Over the past year, the stock has gained 24.4% to close the last trading session at $152.60.
JAZZ's overall A rating equates to a Strong Buy in our POWR Ratings system. It also has an A grade for Value and a B for Growth and Sentiment. The stock is ranked #4 in the same industry.
We've also rated JAZZ for Stability, Momentum, and Quality. Get all JAZZ ratings here.
GILD shares were trading at $88.87 per share on Tuesday afternoon, up $0.33 (+0.37%). Year-to-date, GILD has gained 26.93%, versus a -14.48% rise in the benchmark S&P 500 index during the same period.
About the Author: RashmiKumari
Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions.
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