The great advances and improvements in the treatment of diseases and the effectiveness of these medicines are undoubtedly due to technological progress and how biotech companies take advantage of it for their growth and development. Without the work of these companies, we would still be using very old and ineffective medicines. This new year brings with it very good opportunities to invest in companies in this sector. Here are these top biotech stocks to consider adding to your portfolio. Let’s take a look at each biotech stock more closely.
Biomarin (BMRN)
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is a global biotechnology company that is making waves with its life-changing gene therapies.
Known for its commitment to transforming lives, BioMarin recently unveiled some exciting news. In terms of financials, the company has refined its guidance for 2023, lowering expectations for total revenue and earnings per share.
The forecast adjustments also extend to the net product revenues of its innovative therapies, VOXZOGO and ROCTAVIAN.
Speaking of VOXZOGO, this drug, intended to enhance growth in pediatric patients with achondroplasia, received the green light from the United States Food and Drug Administration (FDA).
Previously approved for children aged five years and older, VOXZOGO is now available for children of all ages with open-growth plates. This expanded approval opens new doors for children seeking growth support.
On the other front, ROCTAVIAN, the innovative gene therapy for severe hemophilia A, scored a major milestone in Germany.
They also reached an agreement with the German National Association of Statutory Health Insurance Funds on the amount of reimbursement, marking a milestone as the first gene therapy for hemophilia in the country to establish a federally agreed price.
This therapy, which is administered via a single intravenous infusion, is set to improve access and treatment for patients worldwide starting this new year.
Looking ahead, BioMarin is optimistic about fiscal 2024 and forecasts revenues of close to $3 billion. This biotech stock should be at the top of your list.
Innoviva (INVA)
Innoviva (NASDAQ:INVA) is making waves in the biotech world, and is an interesting choice for its investment portfolio. In Q3 2023 alone, it earned $57 million in royalties from GSK and $13.7 million in net product revenue. These financial gains demonstrate its strength in the sector.
What has caught my attention most is its innovative treatment, XACDURO, designed to fight severe bacterial pneumonia. It is like a super treatment that fights these nasty infections caused by Acinetobacter, especially those resistant to traditional treatments.
In the U.S. alone, there are more than 40,000 cases a year, and around 40% of them are difficult to treat with the usual methods.
But that’s not all, they are on the front line in the battle against antibiotic resistance. Its Phase 3 trials with zoliflodacin, a new-generation antibiotic against gonorrhea, have yielded positive results.
This is a major achievement, considering the growing threat of drug-resistant strains. Not only are they advancing treatments, but they are laying the groundwork for a new approach to antibiotic research.
Financially, they are also making smart moves. They have repurchased $11 million of their own shares, a clear indicator of confidence in their future. If you are going to grab a biotech stock, start here.
IQVIA (IQV)
IQVIA Holdings Inc (NYSE:IQV) is a leading life sciences company that provides cutting-edge analytics, technology solutions and research services to pharmaceutical and biotechnology companies around the world.
Its financial results for the third quarter of 2023 reflect a solid performance, with revenues up 4.9% year-on-year to $3.736 billion.
This growth came from several segments, including technology and analytics solutions, research and development solutions and contract sales and medical solutions.
In particular, their profitability was on the rise, with a 7.1% year-on-year increase in GAAP net income to $303 million. Adjusted net income and diluted earnings per share also experienced positive growth.
The Research and Development Solutions segment performed well, with quarterly order intake of $2.6 billion, a healthy order-to-turnover ratio of 1.24 times. The R&D backlog experienced an impressive 12% year-on-year growth to $28.8 billion.
In addition to the financial success, they made strategic financial moves, including the allocation of a new $1.5 billion term loan B and the offering of $1.25 billion in senior secured notes.
These steps are intended to address existing borrowings, manage associated expenses and position the company for future growth. Despite the current challenges, Ari Bousbib, President and CEO, expressed pride in the team’s execution, highlighting strong profit margin expansion and cash flow conversion.
As of this writing, Gabriel Osorio-Mazzilli did not hold (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.
