The Top 5 Biotech Stocks I'd Buy Right Now Without Any Hesitation

Source Motley_fool

Key Points

  • These five biotechs all have promising late-stage pipeline candidates.

  • Existing products and new launches could power strong returns for all five over the medium term.

  • These 10 stocks could mint the next wave of millionaires ›

Biotech stocks have performed well in 2026, but things could change fairly rapidly. The industry is notoriously volatile, after all, and there are significant regulatory issues that may weigh on biotech companies. However, regardless of what happens over the next year or two, there are several biotechs with attractive prospects that are worth investing in for the long haul. Let's consider five of them.

Scientists mixing compounds in a lab.

Image source: Getty Images.

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1. The cystic fibrosis drug market leader

Vertex Pharmaceuticals (NASDAQ: VRTX) has long been the leader in the cystic fibrosis (CF) medicines market, and the company's core therapeutic area remains a meaningful growth driver, with no major patent cliff expected over the next 10 years. However, the company is also making strides elsewhere. Consider Vertex's efforts in kidney diseases. It is inching closer to an approval for povetacicept, a medicine for IgA nephropathy.

Its Phase 3 pipeline also features inaxaplin, an investigational drug for APOL-1-mediated kidney disease. The biotech boasts several recent approvals whose sales should ramp up over the next few years, and it has also diversified its pipeline. Vertex's dominance in its core market and progress elsewhere make the stock a buy.

2. A highly diversified biotech giant

While Vertex's growth comes primarily from a single therapeutic area, Amgen (NASDAQ: AMGN) has taken a different approach. In the third quarter, the company had 17 products that delivered at least double-digit year-over-year sales growth. It also had 17 medicines with at least $1 billion annual revenue run rate. That's impressive, and it helps explain why Amgen has been able to overcome recent major patent cliffs without too much trouble, including the one for denosumab, a medicine for several bone-related conditions.

The drugmaker's deep pipeline, which features MariTide -- a highly promising weight-loss medicine -- should enable it to extend its approved lineup. Finally, Amgen is also an excellent dividend stock, having increased its payouts every year since initiating them in 2011.

3. Moving beyond the HIV drug market

Gilead Sciences' (NASDAQ: GILD) portfolio of medicines features some of the best-selling HIV drugs, such as Biktarvy and Descovy for PrEP. The company still generates the bulk of its sales from this area, and one recent approval has helped strengthen the company's position. Gilead Sciences earned approval for Bixlenvo, an HIV pill. However, Gilead Sciences has also made headway in other areas, particularly oncology, in recent years.

Gilead Sciences is betting big on its cancer drug pipeline, which is larger than its HIV pipeline. And as it launches new products in this area, the company will have a stronger, more diversified lineup. Meanwhile, revenue and earnings growth remain strong for the company, and the dividend is rock solid, too. Gilead Sciences has increased its payouts by 74.5% over the past decade.

4. Carving out a niche in a massive therapeutic area

Exelixis (NASDAQ: EXEL) isn't the most popular biotech company. It is much smaller than all of the others discussed here. However, Exelixis has managed to become successful in a corner of the vast and highly competitive oncology market. The company's most important medicine, Cabometyx, has earned multiple indications across multiple cancer types.

Cabometyx will likely face generic competition in the U.S. by early 2030, but Exelixis is ready for it. The company could earn approval for zanzalintinib, an investigational medicine for colorectal cancer, next year. It will target additional indications while also developing new cancer medicines. Exelixis' position in oncology makes it an attractive biotech to buy.

5. Bouncing back from recent challenges

Regeneron Pharmaceuticals (NASDAQ: REGN) has encountered stiff competition for Eylea, a medicine that treats several eye-related diseases, in recent years. This has harmed the company's financial results. However, the drugmaker is slowly putting this issue in the rearview mirror. Revenue and earnings growth have rebounded, largely thanks to a new formulation of Eylea and Dupixent, a medicine for eczema. Regeneron's long-term plans feature both the new version of Eylea and Dupixent.

Dupixent may run into a patent cliff early next decade, but Regeneron will likely seek to protect its empire, notably by developing a high-dose formulation of Dupixent. The company also boasts an attractive pipeline of programs to diversify its lineup, including promising weight-loss candidates. Regeneron's comeback may just be getting started. It's still time to buy the stock.

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Prosper Junior Bakiny has positions in Exelixis and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Amgen, Exelixis, Gilead Sciences, Regeneron Pharmaceuticals, and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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