In the grand tapestry of the investment world, one thread that continues to shine is biotech stocks to buy and hold. It’s no secret that delving into biotech investments can be incredibly challenging, even when zeroing in on established firms with market-ready drugs and expansive research and development pipelines.
In this arena, you’re not merely playing by the financial scorecards but placing bets on the future. These early-stage businesses dazzle with potential, yet their balance sheets typically tell tales of minimal revenue and elusive profits. Yet, biotech’s allure grows as the winds of change steer policies toward equitable healthcare access. With advancements aligning seamlessly with the global pivot towards health and wellness, these stocks are in for potentially stellar long-term growth. For those with an eye on tomorrow, these biotech selections could be the golden tickets to a fortified portfolio ahead.
Biotech Stocks to Buy and Hold: AbbVie Incorporated (ABBV)
In the dynamic realm of biotech, AbbVie Incorporated (NYSE:ABBV) stands tall, undeniably carving a niche as an industry maven. While its star arthritis drug, Humira, has traditionally been its revenue powerhouse, recent patent losses and ensuing generic versions have dented its sales dominance. By the close of the recent quarter, global Humira sales still boasted a cool $4 billion despite a 25% dip. However, AbbVie is no one-trick pony with its expansive drug pipeline and endeavors to widen Humira’s application range, and the company is positioning itself against any revenue shortfalls.
Diving deeper into their feats, collaboration with Genmab yielded promising clinical results for a Follicular Lymphoma treatment. Moreover, with AbbVie securing the MHRA nod in the United Kingdom for its Crohn’s Disease drug, RYNVOQ, and the FDA amplifying the indications for its migraine drug, Qulpta, the company’s global footprint is undeniably expanding. Furthermore, AbbVie’s dividend landscape is enticing, with a tempting yield of more than 3.5% yield that’s seen consistent hikes.
Vertex Pharmaceuticals (VRTX)
Vertex Pharmaceuticals (NASDAQ:VRTX) continues to shine as a beacon of innovation and relentless pursuit of transformative treatments in the vast expanse of the biotech world. Recognized for its powerful efforts in taming cystic fibrosis (CF) – a rare genetic ailment- Vertex takes pride in its array of FDA-endorsed medicines that have significantly managed this disease.
Furthermore, the company is delving deep into advanced-stage trials of other drugs in its pipeline, eyeing transformative therapies for conditions such as transfusion-dependent beta-thalassemia and sickle cell disease. These endeavors could well become FDA-certified game changers in the coming years. The biotech giant’s projected revenue for this year alone hovers between a whopping $9.7 billion to $9.8 billion, mainly steered by its four established CF therapies. Beyond CF, it’s channeling its innovative spirit into exploring treatments for a spectrum of conditions such as sickle cell, anemia, diabetes, kidney disease and muscular dystrophy.
Recursion Pharmaceuticals (RXRX)
Recursion Pharmaceuticals (NASDAQ:RXRX) recently caught the market’s attention by securing a remarkable $50 million boost from Nvidia, a titan in the realm of AI. This collaboration isn’t merely about capital infusion but revolutionizing drug discovery. By harnessing Nvidia’s advanced AI prowess, Recursion aims to develop AI models and competencies capable of unveiling novel drug potentials. This partnership has promising implications for Recursion’s ongoing five human trials, with a spotlight on a mid-stage trial addressing cerebral cavernous malformations.
Beyond cerebral cavernous malformations, Recursion’s therapeutic quest spans the treatment of neurofibromatosis, familial adenomatous polyposis, multiple cancer types and cancer immunotherapy. The current stock valuation might soon seem a steal if its trailblazing AI endeavors yield breakthrough treatments for formidable diseases, particularly cancer. Tipranks analysts certainly concur, tagging it with an encouraging “Moderate Buy” rating and forecasting a staggering 85% growth potential.
On the date of publication, Muslim Farooque 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
