Navigating the turbulent waters in the biotech space is no mean feat. With the sector’s inherent volatility due to testing clinical trials and regulatory hurdles, the road toward market approval can be incredibly challenging. However, for the savvy investor, promising biotech stocks to buy can translate into significant returns.
According to Grand View Research, the global biotech market reached an impressive $1.37 trillion valuation last year. Additionally, analysts anticipate a compound annual growth rate (CAGR) of roughly 14% from 2023 to 2030, pointing to a landscape ripe with long-term potential.
Nevertheless, the journey from lab to market is fraught with uncertainties, and the market is quick to penalize any missteps. Yet, those willing to delve deeper and weather the storms could uncover biotech stocks with growth potential. Therefore, let’s keep our eyes peeled for high potential biotech stocks that could yield long-term gains.
Travere Therapeutics (TVTX)
Up-and-coming biotech Travere Therapeutics (NASDAQ:TVTX) aims to identify, develop, and deliver life-altering therapies for rare diseases. It’s worth noting that though this biotech firm boasts potentially transformative potential, it packs a punch of risk.
Nevertheless, its emerging therapies catering to various diseases cannot deny its potential. Travere has become especially popular due to its innovative therapy, Sparsentan, which holds promise for two types of kidney disease, primary immunoglobulin A (IgA) nephropathy and focal segmental glomerulosclerosis.
Furthermore, Travere Therapeutics recently made waves in the stock market after announcing positive results from a Phase 1/2 trial for pegtibatinase, its investigational therapy for the rare metabolic disorder classical homocystinuria. These findings indicate clinical benefits with a favorable safety profile, adding to TVTX’s stock appeal.
BioMarin Pharmaceutical (BMRN)
BioMarin Pharmaceutical (NASDAQ:BMRN) is a top innovator in enzyme replacement therapies, which has effectively etched its name in the healthcare sector with a robust portfolio of products. These products include Vimizim, Naglazyme, Kuvan, Firdapse, and others, accounting for the bulk of its sales now. Its diverse array of therapies addresses a range of medical conditions, bolstering its financial foothold.
Its multifaceted approach, entailing collaborative agreements, royalties, and licenses, has solidified its top line. The firm’s revenue and net income margin growth over a 5-year period has averaged 10% and 8.3%, respectively.
Roctavian, BioMarin’s hemophilia gene therapy, has recently garnered the spotlight. If approved by the FDA, Roctavian would be a pioneering gene therapy for this condition, thus making BioMarin a potential game-changer. It’s already secured conditional marketing authorization from the European Commission, but an FDA approval could be the real game-changer.
Gilead Sciences (GILD)
Gilead Sciences (NASDAQ:GILD) has established its position as a leader in the biotech space, carving a successful path for its business over the past several years. It boasts a range of treatments combatting conditions from HIV to cancer. Gilead proved to be incredibly successful during the pandemic with Remdesivir, its antiviral drug for the coronavirus. Its string of victories and a sturdy financial footing helped build its cash war chest to $5.4 billion in cash and a robust $4.5 billion in net income.
In a recent strategic move, Gilead expanded its research collaboration with Arcus Biosciences. The collaboration is set to bolster Gilead’s robust pipeline further, strengthening its solid market stance.
Furthermore, it boasts an A-graded profitability profile, marked by double-digit growth across core metrics in the past five years. Moreover, investing in Gilead comes with a dividend and quite a hefty one, with a yield of almost 4%. On top of that, it boasts seven consecutive years of dividend growth. These factors make Gilead one of those promising biotech stocks.
