3 Top Pharma Stocks to Buy Now: February 2024
Looking for pharma stocks to buy in February 2024?
The pharmaceutical industry has always drawn a big crowd of investors. It has a veritable laundry list of success stories, like Eli Lilly’s stock surge due to its obesity treatment and CRISPR Therapeutics’s nearly 100% jump after a favorable FDA ruling. But the sector is not just about the hits; advancements in medicine and drugs are helping treat conditions that were practical death sentences just a few years ago.
That glimmer of hope is reflected on the investment side, where breakthroughs can mean massive upsides for investors willing to bet big on potential cutting-edge treatments and medicine. However, thorough due diligence calls for more than just random bets. We must look for buy-rated pharma stocks with promising pipelines and financials to see their projects through. To that end, here are three of the best ones right now.
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Alkermes PLC (ALKS)
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Alkermes PLC (NASDAQ:ALKS) is a neuroscience specialist in the global biopharmaceutical landscape. It has a portfolio of products that offer treatment for opioid dependence, alcohol dependence, schizophrenia, and bipolar I disorder. Its commercial products include VIVITROL, ARISTADA/ARISTADA INITIO, and LYBALVI.
The company also has a pipeline of preclinical and clinical candidates for neurological disorders in its portfolio. Its latest announcement about topline results for LYBALVI®, a treatment for adults with schizophrenia and bipolar I, has enhanced the drug’s market potential.
Alkermes’s latest financials showed an impressive 50.90% revenue growth, with net sales of its proprietary products garnering a 16% increase YoY. GAAP net income was reported as $47.8 million, a complete reversal of last year’s $64.0 million loss.
AKLS’s balance sheet also reflected cash, cash equivalents, and total investments of $995.6 million, which more than covers its current $291.4 million in debt outstanding— an excellent indicator of financial stability. These solid results and profitability show the company’s strong resilience and effective management. Its commitment to becoming a pure-play neuroscience company makes it a solid candidate for our list of pharma stocks to buy in February 2024.
Gilead Sciences (GILD)
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Next on our list of pharma stocks to buy in February 2024 is Gilead Sciences (NASDAQ:GILD), a biopharmaceutical company specializing in developing and advancing medicines that help treat and prevent life-threatening diseases like viral hepatitis, cancer, and human immunodeficiency virus (HIV). Its products include Ledipasvir-Sofosbuvir, Sofosbuvir-Velpatasvir, Vemlidy, and Viread for hepatitis diseases; Genvoya, Odefsey, Biktarvy, Complera/Eviplera, Stribild, and Truvada for HIV; Tecartus and Yescarta for its oncology cell therapies. The company also holds a portfolio of small-molecule inhibitors for oncology and inflammatory diseases.
GILD’s latest revenue was reported at $7.05 billion, flat YoY compared to $7.04 billion. However, net income attributable to the company saw a 21.9% jump from $1.79 billion to $2.18 billion. Biktarvy sales grew 12%, while oncology sales increased by 33%. Chairman and CEO Daniel O’Day highlighted the company’s two years of consistent base business growth, driven by its Virology and Oncology segment with leading products like Yescarta, Biktarvy, Tecartus, and Trodelvy, with Trodelvy notably experiencing a 58% jump in sales YoY.
The company adjusted its full-year guidance based on these positive numbers, anticipating total product sales to end between $26.7 billion and $26.9 billion (previously $26.7 billion and $26.9 billion). Gilead’s strong clinical momentum, solid financials, and diversified list of products make it one of the best buy-rated pharma stocks today.
Regeneron Pharmaceuticals (REGN)
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Regeneron Pharmaceuticals (NASDAQ:REGN) is a biotech company focused on creating medicine for serious diseases and its commercialization. The company’s product candidates and commercialized medicines focus on diseases like cancer, hematologic conditions, infectious diseases, eye diseases, cardiovascular and metabolic diseases, pain, and more.
It helps improve and accelerate drug development processes using its VelociSuite technologies that help produce optimized fully human and bispecific antibodies using genetically humanized mice. Its gene therapy programs help target various forms of congenital, monogenic hearing loss. Regeneron’s recent acquisition of Decibel Therapeutics puts it in a strong position in the genetic medicines market.
REGN’s latest financial numbers showcased a strong quarter with 15% YoY revenue growth, led by 33% and 62% increases in Dupixent® and Libtayo® global net sales, respectively. GAAP diluted EPS reached $8.89 despite a massive -$0.77 hit due to an IPR&D charge. CFO and Vice President Robert E. Landry said, “Our third quarter financial results reflect robust execution across the enterprise, including notable pipeline advances and strong commercial performance.” Its strong product pipeline, financial performance, and successful product launches make the company a compelling buy for any investor seeking exposure to buy-rated pharma stocks.
On the date of publication, Rick Orford 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.
Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.
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