Zacks Industry Outlook Highlights Exelixis, Blueprint Medicines, CRISPR, Amicus and Verona Pharma

In This Article:

For Immediate Release

Chicago, IL – October 25, 2024 – Today, Zacks Equity Research discusses Exelixis, Inc, EXEL, Blueprint Medicines BPMC, CRISPR Therapeutics CRSP, Amicus Therapeutics FOLD and Verona Pharma VRNA.

Industry: Biotech

Link: https://www.zacks.com/commentary/2356709/5-biotech-stocks-likely-to-outperform-as-industry-prospects-look-bright

It has been a decent year for the biotech industry so far, buoyed by new drug approvals and positive regulatory/pipeline updates. The third-quarter earnings season has just kicked off, with most major biotech companies scheduled to report next week. The current momentum in the industry is mostly positive, with increasing R&D spending on lucrative areas such as obesity, gene-editing technologies and rare diseases.

Companies in this volatile biotech industry continue to be in the spotlight as pharma/biotech goliaths are looking to bolster their product portfolios and pipelines through collaborations and buyouts amid generic competition for legacy drugs. Given the continuous need for innovative medical treatments, irrespective of the state of the economy, an investment in the biotech industry can be worth it, notwithstanding the inherent volatility and uncertain macroeconomic environment.

Biotech companies like Exelixis, Inc,, Blueprint Medicines, CRISPR Therapeutics, Amicus Therapeutics and Verona Pharma are poised to outperform the volatile sector.

Indutsry Description

The Zacks Biomedical and Genetics industry includes biopharmaceutical and biotechnology companies that develop high-profile drugs using path-breaking technology. These biologically processed drugs, which address virology, neuroscience, metabolism and rare diseases, are manufactured using live organisms.

As technology becomes paramount to improving global health, biotech companies aim to use innovative technology to create breakthrough treatments rapidly. Quite a few companies in this space are developing drugs and vaccines using modern technology. Given the dynamic and evolving nature of technology, the sector is perceived to be riskier than the large-cap pharma or drug industry.

4 Trends Shaping the Future of the Biotech Industry

Innovation, Execution Hold the Key: The primary focus in the biotech industry is on the performance of high-profile drugs and pipeline development, as only a few companies in this industry have approved drugs in their portfolios. Most companies spend millions and billions of dollars to create a drug with path-breaking technology, resulting in significant research and development expenditures. Sometimes, modern treatments come with side effects, which surface with time, and the uptake might fail to meet the expectations. Hence, it takes several years before a biotech company turns profitable.