Our 3 Favorite Biotech Stocks to Play the Potential $727 Billion Biotech Market
Owning the right biotech stocks now could generate massive long-term gains, as the biotech industry could grow 120% by 2025.
Analysts are projecting the biotech sector could be worth $727 billion by 2025, up from $330 billion in sales in 2015.
And we’ve uncovered the biotech stocks with potential to net the biggest returns.
Our propriety stock valuation tool – the Money Morning Stock VQScore – ranks stocks according to their growth potential. Stocks with scores over 4 have the most potential, and these biotech stocks popped up with a score of 4.15 or higher.
Buying shares of these stocks could be like picking up Netflix Inc. (Nasdaq: NFLX) stock before it soared to today’s record highs. A $1,000 investment in NFLX when it had a VQScore of 4-plus would be worth more than $16,000 today.
And the first stock on our list is tapping into 120% industry growth, as it already supplies 20 of the top 25 pharmaceutical companies.
Top VQ Biotech Stock, No. 3: Repligen Corp.
Repligen Corp. (Nasdaq: RGEN) provides high-value products and flexible solutions that address the most critical steps of producing biologic (complex molecules manufactured with living microorganisms, plants, or animal cells) drugs.
According to the company’s website, 20 of the top 25 pharma companies in the world use Repligen’s products.
And that’s the key to the company returning 398% to its shareholders in the past five years…
Repligen has become a leader in supplying equipment that’s required to purify biologics after production.
There were 14 monoclonal antibody drugs approved in 2017, and another 400 are in development.
That brought in a lot of money for RGEN.
From 2016 to 2017, revenue increased 35%. Revenue is also expected to climb another 27% to 32% this year.
Over the next 12 months, analysts at Stephens Inc. expect the RGEN stock price to trade for $50 per share. From today’s (May 15) price of $42.01, that’s a profit of 19.01%.
But that estimate may be too conservative…
When revenue increased 35% between 2016 and 2017, the RGEN share price climbed roughly 38%. If there’s a 32% increase in revenue from 2017 to 2018 and share prices follow revenue growth once again, the RGEN stock price could climb 35%.
The next biotech stock to watch is already a go-to source for generic drug companies, and it just increased its research abilities.
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