Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who may pay to be displayed in certain positions on certain pages, or may compensate us for referring users to their services. While our reviews and assessments of each product are independent and unbiased, the order in which brands are presented and the placement of offers may be impacted and some of the links on this page may be affiliate links from which we earn a commission. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
5 Best Biotech Stocks to Buy in Q1 2025
Trade your favourite markets with our top-rated broker,
.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
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 best stocks 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 | Learn more |
---|---|---|---|
1 | RGEN | Regeneron Pharmaceuticals Inc. | Learn more > |
2 | VRTX | Vertex Pharmaceuticals, Inc. | Learn more > |
3 | GILD | Gilead Sciences | Learn more > |
4 | AMGN | Amgen | Learn more > |
5 | NBIX | Neurocrine Biosciences, Inc. | Learn more > |
1. Regeneron Pharmaceuticals Inc. (NASDAQ: RGEN)
Copy link to section- Market Cap: $111 billion
- 2023 Revenue: $13.1 billion
- Forward Revenue Growth: 7.6%
- Dividend yield: N/A
- P/E Ratio: 23
- Stock Price: $1,036
Headquartered 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 $13.1 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 $111 billion, its sheer scale and the variety of treatments it offers have secured its place on our list.
Regeneron’s drugs are used to treat people with various illnesses like diabetes, glaucoma, asthma, arthritis, and colorectal cancer. All these are drugs with substantial market sizes and the company has a strong pipeline of drugs.
Regeneron’s annual revenue peaked at over $16 billion in 2021 as it benefited from its Covid-19 vaccine. It then dropped to $16 billion in 2022 and grew to $13.1 billion in 2023. The company has a room to grow in this new normal.
The key risk to remember with Regeneron is that it is a highly overvalued company with a P/E multiple of 23. This means that it needs to publish strong results to justify this valuation.
2. Vertex Pharmaceuticals (NASDAQ: VRTX)
Copy link to section- Market Cap: $124 billion
- 2023 Revenue: $9.8 billion
- Forward Revenue Growth: 9.3%
- Dividend yield: N/A
- P/E Ratio: 28
- Stock Price: $480
Vertex Pharmaceuticals is one of the biggest biotech companies in the world with a market cap of over $111 billion. It has grown this fast both organically and through acquisitions, with the mot recent one being Alpine Immune Sciences. It also acquired Semma Therapeutics and ViaCyte in a bid to increase its products.
Vertex Pharmaceuticals focuses on a number of diseases, including cystic fibrosis,a common genetic disease. It also has drugs that treats sicle cell disease while its pipeline is made up of drugs to treat beta thalassemia, acute and neuropathic pain, and type 1 diabetes.
Vertex is a good biotech stock to buy because of its strong pipeline and its substantial margins. For example, its annual revenue rose to $9.8 billion in 2023 while its annual profit stood at over $3.6 billion.
One of the most promising drugs is Povetacicept, which it received when it acquired Alpine. The drugs test for systemic lupus erythematosus has moved to the phase 2 study and is in the phase 1b/2a of its glomerulonephritis.
Most importantly, Vertex has one of the best balance sheets in the industry. It has over $10 billion in cash and short-term investments and no debt.
3. Gilead Sciences (NASDAQ: GILD)
Copy link to section- Market Cap: $81 billion
- 2023 Revenue: $27.1 billion
- Forward Revenue Growth: 0.8%
- Dividend yield: 4.7%
- P/E Ratio: 17
- Stock Price: $65
Gilead Sciences has one of the biggest portfolios of HIV medicines like Descovy, Complera, Emtiva, and Biktarvy. It also owns many drugs that treat Viral Hepatitis and cancer. Also, the company has several drugs in its pipeline.
Gilead Sciences stock price has gone through a rough patch as its revenue growth has slowed. It has crashed by more than 16% in the past 12 months and has moved to the lowest level since 2022.
The main reason to buy Gilead is that it has become a highly undervalued company compared to its peers. It trades at a price-to-earnings ratio of 17, which is lower than the S&P 500 average of 21.
The company also has a strong balance sheet, which gives it room to continue growing through acquisitions. While it has over $21 billion in debt, it also has over $6 billion in cash and it generates over $9 billion in free cash flow.
4. Amgen (AMGN)
Copy link to section- Market Cap: $160 billion
- 2023 Revenue: $28 billion
- Forward Revenue Growth: 8.8%
- Dividend yield: 3%
- P/E Ratio: 15
- Stock Price: $298
Amgen is another quality biotech company that has grown substantially in the past few years. This growth happened both organically and through acquisitions. The most notable buyouts happened in 2023 when it bought Horizon Therapeutics in a $27.8 billion deal. Horizon gave it access to drugs that treat rare, autoimmune, and severe inflammatory diseases.
Amgen’s revenue has soared from $23.3 billion in 2019 to over $28.1 billion in 2023 while its net income soared to over $6.7 billion. The company has entered the weight loss industry that is being dominated by the likes of Novo Nordisk and Eli Lilly.
5. Neurocrine Biosciences, Inc. (NASDAQ: NBIX)
Copy link to section- Market Cap: $13 billion
- 2023 Revenue: $1.8 billion
- Forward Revenue Growth: 19%
- Dividend yield: N/A
- P/E Ratio: 22
- Stock Price: $135
Neurocrine 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.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Plus500
CFD service. 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.
This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.
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.
Methodology: How we choose the best biotech stocks
Copy link to sectionAt Invezz, our mission is to empower our readers with the most accurate and reliable financial information. Our curated selection of the best stocks in specific industries is designed to provide investors with well-researched, expertly reviewed stock recommendations. Our team follows a rigorous process to ensure our readers receive high-quality, trustworthy stock selections.
- Initial screening. Our team of experienced stock market analysts conducts an initial screening of stocks within the chosen industry. This involves analyzing a broad range of companies based on key financial metrics such as revenue growth, profitability, debt levels, and market capitalization.
- Earnings reports and financial analysis. Analysts review the latest earnings reports of shortlisted companies. This includes a detailed assessment of financial statements, looking for consistent earnings growth, strong balance sheets, and positive cash flow trends. Special attention is given to year-over-year performance and quarterly results.
- Sector analysis. A comprehensive sector analysis is conducted to understand the macroeconomic factors affecting the industry. This includes examining market trends, competitive landscape, regulatory changes, and technological advancements. Our analysts utilize industry reports, market research, and economic forecasts to gain a holistic view of the sector.
- Analyst recommendations. We consider recommendations from reputable sources such as Barron’s and Zacks. These sources provide expert opinions and ratings on stocks, which serve as an additional layer of validation for our selections. Incorporating external analyst recommendations ensures that our curated stocks are backed by a consensus of expert views.
- Internal review. After the initial selection by our analysts, the chosen stocks are reviewed by a sub-editor. The sub-editor ensures that the analysis is clear, concise, and adheres to Invezz’s editorial guidelines. This review process helps maintain the quality and readability of our content, making it accessible to a broad audience.
- Quarterly updates. To ensure our stock recommendations remain relevant and up-to-date, we update the curated section quarterly. Each update cycle involves re-evaluating the stocks based on the latest financial reports, industry developments, and market conditions. This regular update process ensures that our recommendations reflect the most current information available.
Our approach combines expert analysis, comprehensive research, and regular updates to deliver reliable and insightful investment recommendations. Read more about our review process and editorial policy.