If you have the patience to go through wild undulations, then you may be a candidate for biotech stocks that will make you rich in 10 years. Even among the most established biotechnology firms, they’re seemingly one news item away from disaster. Further, the smaller enterprises in this exciting arena tend to be extremely unpredictable.
Nevertheless, because the sector tends to run on its own fundamentals rather than abiding exclusively by traditional economic metrics, the biotech stocks that will make you rich in 10 years may surprisingly enjoy relevancy right now. With so many concerns about monetary policy and geopolitical rumblings, it’s nice to trade in a roughly independent ecosystem.
Most importantly, advanced biopharmaceuticals may one day spark groundbreaking health-related innovations. Thus, it makes sense to have some speculation funds directed at this segment. So, without any more delay, below are the biotech stocks that will make you rich in 10 years.
One of the giants in the pharmaceutical space is AbbVie (NYSE:ABBV). This company ranks among the biotech stocks that will make you rich in 10 years mainly because of its Allergan acquisition. Through the takeover, AbbVie now commands the wrinkle-fighting treatment Botox. While such “superficial” treatments for lack of a better word lost relevance during the coronavirus-fueled quarantines, the gradual return to full normalization should lift Botox sales.
Two fundamental factors come to mind. First of course is the pivot toward return-to-office policies. With Disney (NYSE:DIS) recently cracking the whip regarding its newly stated in-office policy, other enterprises will likely follow suit. Naturally, the return of physical interactions should boost Botox’s revenue. Another factor is that a decade from now, the oldest millennials will be in their 50s. And the oldest members of Gen Z will be steadily marching to their 40s. Demographically, then, ABBV appears to be one of the biotech stocks that will make you rich in 10 years.
Making a name for itself for forwarding a messenger-RNA-based vaccine to combat the Covid-19 crisis, biopharma giant Pfizer (NYSE:PFE) offers many potential relevancies. By leveraging the innovation to research and develop vaccines for other infectious diseases, Pfizer can profitably leverage its newfound acumen. Therefore, it may well be one of the best biotech stocks that will make you rich in 10 years.
However, it must be said that PFE recently took it on the chin based on a Wells Fargo analyst downgrade. Essentially, the current run rate for Pfizer’s Covid antiviral drug and its vaccine might not meet consensus revenue targets. Therefore, both investors and market observers may need to reset their future expectations, which doesn’t bode well for PFE. Nevertheless, among covering analysts, Pfizer still commands a moderate buy consensus view. Further, their average price target implies a 15% upside potential. However, should the company continue to develop its mRNA technology, the sky may be the limit.
Thus, it’s worth consideration for biotech stocks that will make you rich in 10 years.
Focused on finding new ways to manage rare and often hard-to-treat diseases, Incyte (NASDAQ:INCY) carries both significant potential and risk. Still, INCY ranks among the biotech stocks that will make you rich in 10 years because of its proven history of getting therapeutics approved. The company covers a wide area of needs, including oncology, inflammation, and autoimmunity.
As you may know, if you spent time in the biotech space, it’s often wildly unpredictable. Therefore, what I appreciate about Incyte is its financial stability. For instance, the company features a cash-to-debt ratio of 70.75 times, ranking above 72% of the biotech industry. As well, its Altman Z-Score (a measure of bankruptcy risk) pings at 9.85, well into the safe zone.
Objectively as well, Incyte enjoys an undervalued investment profile. Currently, the market prices INCY at just under 18 times forward earnings. In contrast, the sector median stands at over 27 times. Finally, while the immediate sentiment among hedge funds may be negative, in the long run, the smart money considerably added INCY to its portfolio since the fourth quarter of 2020.
Oncology specialist Exelixis (NASDAQ:EXEL) might not immediately attract investors seeking biotech stocks that will make you rich in 10 years. For example, its trailing-year performance of 6% below breakeven seems dull: it’s not too steep of a loss to spark contrarian interest but the existence of red ink may worry more conservative investors.
However, Exelixis – which depends on its blockbuster cancer drug Cabometyx – still has a place among compelling biotech enterprises. Cabometyx received approval to treat first- and second-line renal cell carcinoma (RCC). Representing one of the deadliest growing solid tumor cancers, Exelixis commands powerful relevancies. As well, patient demand globally for treatment options will rise significantly, according to Data Bridge Market Research.
Just as well, Exelixis enjoys solid financials. Undergirded by a stable balance sheet, the company carries strong profitability metrics. For instance, its net margin stands at nearly 19%, above 85% of the competition. As well, the market prices shares at only 17.6-times forward earnings, below the sector median of over 27 times. Therefore, it’s one of the biotech stocks that will make you rich in 10 years.
CRISPR Therapeutics (CRSP)
Among the most controversial companies, CRISPR Therapeutics (NASDAQ:CRSP) nevertheless makes a case for biotech stocks that will make you rich in 10 years. To be completely transparent, CRSP represents a largely aspirational narrative. Similar to many other clinical-stage biotech firms, Crispr sits far from profitability. At the same time, its flagship product might change that.
In partnership with Vertex Pharmaceuticals (NASDAQ:VRTX), Crispr engages in the potential treatment of sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT). According to Fortune Business Insights, the market for treating SCD may grow to $8.75 billion in 2029, representing a compound annual growth rate (CAGR) of 21.4% from 2022. Regarding TDT, the treatment market featured a valuation of $411.8 million in 2021. Experts at Coherent Market Insights project that the segment can expand at a CAGR of 7.8% between 2021 through 2028.
While Crispr again doesn’t enjoy robust financials, analysts apparently believe it’s one of the biotech stocks that will make you rich in 10 years. Presently, CRSP enjoys a moderate buy consensus view. Also, the average price target implies an upside of slightly over 82%.
Sarepta Therapeutics (SRPT)
To be clear from the get-go, Sarepta Therapeutics (NASDAQ:SRPT) ranks among the riskiest names in the biotech ecosystem. It’s not that the company is bad – far from it. Rather, it’s good, perhaps too good. In the trailing year, shares have nearly doubled. Therefore, it raises the prospect that interested buyers now may end up holding the bag.
Still, from a fundamental perspective, Sarepta deserves a closer look as one of the biotech stocks that will make you rich in 10 years. Recently, the company made significant progress regarding its approved products targeting Duchenne muscular dystrophy (DMD). According to Allied Market Research, the global DMD treatment market featured a valuation of $1.3 billion. However, the segment may grow to $2.07 billion by 2031.
Because DMD is a progressive and fatal disease, Sarepta commands powerful relevancies. Further, should medical breakthroughs materialize in the next decade, SRPT could still enjoy a stratospheric upside. Finally, Sarepta benefits from a strong buy consensus rating among covering analysts. This underscores why many experts believe SRPT is one of the biotech stocks that will make you rich in 10 years.
For what may be the riskiest idea on this list, CureVac (NASDAQ:CVAC) nevertheless presents intrigue for contrarian speculators. One of the biotechs that forwarded advanced solutions for Covid-19, CureVac continued to invest in the underlying mRNA technology. Recently, the company managed to pop higher based on positive data for its Covid and flu vaccines.
As I pointed out, CureVac – thought a speculative venture – may enjoy relevancies associated with infectious diseases. For instance, society currently grapples with the so-called tripledemic or the convergence of the flu, Covid-19, and respiratory syncytial virus (RSV). Moving forward, these tripledemics may become a more frequent public safety concern, thus warranting various solutions. This framework sets up CVAC to be one of the biotech stocks that will make you rich in 10 years.
Of course, nothing is guaranteed. In the trailing year, shares dropped over 56% in equity value. At the same time, in the year so far, CVAC gained over 53%. With solid analyst support targeting a near-doubling in the share price, CureVac certainly offers an exciting proposition.
On the date of publication, Josh Enomoto 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.