2 Biotech Giants to Buy in 2026

Biotech stocks may offer your portfolio an element of growth, and that's because these companies are sharply focused on innovation. They set out to tackle some of the most challenging diseases, and as they progress toward the finish line, their stock prices might take off. And once they actually reach their goals and commercialize a product or products, these players should continue to offer you growth, and at the same time, an element of safety -- the idea here is patients need their medications, so revenue may achieve a certain stability.

With this in mind, let's check out two biotech giants that have proven themselves with solid pipelines and a number of products on the market. They make great additions to any portfolio in 2026.

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1. Regeneron Pharmaceuticals

Regeneron Pharmaceuticals (NASDAQ: REGN) has two big sources of growth right now: Dupixent, a drug that treats inflammatory conditions from eczema to asthma, and Eylea HD, a drug for retinal disease. In the recent quarter, global sales of the former rose 34% and U.S. sales of the latter jumped 66%. The biotech company is also generating double-digit growth from cancer immunotherapy Libtayo. These and other products have helped Regeneron increase earnings over time.

REGN Revenue (Annual) data by YCharts

On top of this, Regeneron has a rich pipeline, including many late-stage programs in areas spanning hematology, immunology, and rare disease. This should fuel new stages of growth down the road -- even if only a handful make it to commercialization.

All of this makes Regeneron look like a very reasonable buy at 17x forward earnings estimates, down from past levels that surpassed 25x projected earnings.

2. Vertex Pharmaceuticals

Vertex Pharmaceuticals (NASDAQ: VRTX) is the leading player in the field of cystic fibrosis (CF) treatment. The company sells blockbuster drugs known as CFTR modulators, and they're designed to fix a faulty protein that leads to disease symptoms. Today, Vertex's drugs may treat 90% of the CF patient population, and the company is working on a candidate to address those who can't benefit from its current products.

Importantly, Vertex has strong intellectual property that should protect its CF leadership into the later part of the next decade.

Vertex's CF drugs are bringing in billions of dollars in revenue, and in recent years the company has also expanded into other areas -- it has won approval for Casgevy, a gene-editing treatment for blood disorders, and Journavx, a non-opioid treatment for pain. This expansion could supercharge revenue in the years to come.

Trading at 24x forward earnings estimates, Vertex looks like a top biotech buy in 2026.

Adria Cimino has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Regeneron Pharmaceuticals and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.