Best biotech stocks to buy in 2024
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Our financial analysts have picked out the top five biotech companies that are at the top of their field. Additionally, you can find an explanation of the industry as a whole, along with the best place to find these biotech stocks.
What are the top biotech stocks to buy?
Copy link to sectionThe table below contains the five companies our experts have chosen. You can either find up-to-date share price data through the table or scroll down to find out more information about each.
| # | Stock symbol | Company name | Trade now |
|---|---|---|---|
| 1 | RGEN | Regeneron Pharmaceuticals Inc. | |
| 2 | NVAX | Novavax, Inc. | Trade NVAX 77% of retail CFD accounts lose money. |
| 3 | GILD | Gilead Sciences | Trade GILD 77% of retail CFD accounts lose money. |
| 4 | OCGN | Ocugen Inc. | |
| 5 | NBIX | Neurocrine Biosciences, Inc. |
For more information about each company, simply scroll down for more details such as market caps, revenue and product ranges.
1. Regeneron Pharmaceuticals Inc. (NASDAQ: RGEN)
Copy link to sectionHeadquartered in New York and part of both the NASDAQ 100 and S&P 500 indexes, Regeneron Pharmaceuticals is a biotech and pharmaceutical company that was founded in 1988. Regeneron generates around $8 billion of revenue per year and employs over 8,000 staff.
Its top pharmaceutical products include Aflibercept, Analyst, Praluent, Dupixent, Kevzara, Libtayo, and Inmazeb, and they are used to treat things like inflammation, blindness, arthritis, cardiovascular disease, cancer and even Ebola. With a market cap of over $50 billion, its sheer scale and the variety of treatments it offers have secured its place on our list.
Recently, Regeneron was in the news for providing an experimental COVID-19 antibody treatment for President Trump. Its recent share price performance has been solid if a little volatile, though we can foresee growth with the introduction of new treatments.
2. Novavax, Inc. (NASDAQ: NVAX)
Copy link to sectionBased in Maryland, US, and founded in 1987, Novavax is a pharmaceutical company that creates experimental vaccines for major diseases. It did not have a successful launch until its 2021 NVX-CoV2373 COVID-19 vaccine, and it has now applied for emergency use in the US. It also has a phase 3 clinical trial underway for an influenza vaccine, NanoFlu.
Given its lack of a successful launch until 2021, its share price has been extremely volatile. However, from 2020 onwards, it has experienced rapid growth and has now has a market cap in excess of $12 billion. This makes it a strong growth stock that has the potential to generate dramatic returns, though its experimental focus comes with increased risks.
Looking to the future, a major potential catalyst comes in the form of Novavax’s COVID-19 vaccine receiving formal authorisation. Moreover, Novavax claims its vaccine has higher efficacy than some of the major COVID-19 vaccines, though this is largely down to where and how it is tested. If the company can secure approval, it could be en route to profits.
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3. Gilead Sciences (NASDAQ: GILD)
Copy link to sectionGilead Sciences is an American company that develops treatments for a variety of life threatening diseases. It’s best known for its treatment for Hepatitis B and C, HIV, and Influenza. Like many of the companies on this list, it was created in the 1980s, and has been public since 1992.
This type of stock often ebbs and flows with the success of its treatments and Gilead is no different. It did well initially out of the pandemic, thanks to a coronavirus treatment called Veklury, that sent its stock soaring above $80 and to its highest price in five years. As other companies developed vaccines, that price began to wane again.
The big thing with any biotech company is its ability to develop new drugs. Successful ones almost guarantee profits for many years but they are difficult to find and so one route is to buy up other companies to grow into new areas. Gilead has done this to get exposure to cancer and cardiovascular medication, so that it has a robust range of treatments for serious illnesses that it can use to turn into long term profits.
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4. Ocugen Inc. (NASDAQ: OCGN)
Copy link to sectionBased in Philadelphia and founded in 2013, Ocugen is a clinical-stage biopharmaceutical company that is focussed on developing treatments for rare eye diseases.
The main reason it is on our list is because of its potential for dramatic growth. With only around 50 employees and a market cap of just over $2 billion, the company has plenty of headroom, especially considering the company had a dramatically higher valuation a few years ago.
While Ocugen currently produces virtually no revenue, investors are banking on one of its innovative treatments reaching commercialisation, though exactly when this will happen remains to be seen. Ocugen is not a stock for the faint of heart, though, for brave investors with an ambitious eye, it could be a winner.
5. Neurocrine Biosciences, Inc. (NASDAQ: NBIX)
Copy link to sectionNeurocrine Biosciences is an American biopharmaceutical company founded in 1992 and based in San Diego, California. The company pioneers treatments for neurological and endocrine-related diseases and disorders.
The company’s main drug, Valbenazine, was approved for use in the US for adults with Tardive Dyskinesia in 2017, and this is the main source of its nearly $800 million yearly revenue. Alongside Valbenazine, Neurocrine is developing treatments at various stages of research for Parkinson’s disease, Tourette syndrome, and congenital adrenal hyperplasia.
The fact that Neurocrine has the inherent value of a profitable treatment combined with numerous potentially lucrative clinical-stage treatments has resulted in the company being on this list. We feel it strikes a nice blend of an $8 billion value stock with plenty of growth potential, as its work with a partner to treat endometriosis and uterine fibroids demonstrates.
Where to buy the best biotech shares
Copy link to sectionGenerally, the best place to find shares is through a reliable stockbroker with low fees. These are online services that allow you to easily control your entire investment portfolio from a single, user-friendly interface.
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Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
What is a biotech stock?
Copy link to sectionA biotech stock is a publicly-traded company that harnesses biological technology. This can include cellular and biomolecular processes with the main aim of creating technologies that enhance quality of life. A simple example of biotechnology that has been used for generations is the fermentation process for certain kinds of cheese.
Are biotech shares a good investment?
Copy link to sectionBiotech stocks are high-risk, high-reward investments. Many of them are in the process of developing drugs that could eventually solve major illnesses and address multi-billion dollar markets.
However, one misstep can have dramatic consequences. For example, if a US-based biotech company receives approval or rejection on one batch of trial data from the U.S. Food and Drug Administration, it can send a stock soaring or plummeting in a matter of minutes.
The important thing you need to look for in biotech shares is catalyst moments. Before investing, make sure you are aware of the key dates around which a company’s success or failure will be revealed.
While there can never be true certainty that a biotech stock will be successful, knowing the major milestones can help you anticipate market movements ahead of time. For the latest news on the biotech sector, click on one of our news links below.
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