The biotechnology sector is a rapidly evolving and highly exciting area of the market. The sector focuses on the use of living organisms to make products or run processes. This sector is at the forefront of scientific advancement. Making breakthroughs in areas like drug development, genomics, regenerative medicine, and more. The sector’s performance is heavily tied to research outcomes, regulatory approvals, and market acceptance of new therapies. This makes it a highly volatile but potentially highly rewarding sector for investors.
Large-cap biotech stocks, specifically, refer to companies in this sector with a market capitalization of $10 billion or more. These are typically more established companies that have one or more approved products on the market. They often have a more diversified drug pipeline and are therefore less dependent on the success or failure of a single product, unlike their smaller counterparts. Because of their size, they’re also often better able to weather market volatility and regulatory hurdles.
Investing in large-cap biotech stocks can offer a balance between the high growth potential that comes with biotech innovation and the stability offered by larger, more established companies. While they may not offer the same explosive growth potential as smaller, more speculative biotech companies, they offer more stability and are often seen as a more conservative way to gain exposure to the exciting advancements in the field of biotechnology. Keeping this in mind, here are two large-cap stocks to watch in the stock market now.
Large-Cap Biotech Stocks To Buy [Or Avoid] Now
- Amgen Inc. (NASDAQ: AMGN)
- Gilead Sciences, Inc. (NASDAQ: GILD)
Amgen (AMGN Stock)
Leading off, Amgen (AMGN) is a global biotechnology company. The company focuses on areas of high unmet medical need, including oncology, kidney disease, bone health, and cardiovascular disease. Its blockbuster drugs include Enbrel for rheumatoid arthritis and Neulasta for neutropenia.
In late April, Amgen reported a beat for its first quarter 2023 earnings results. In the quarter, the company notched in earnings of $3.98 per share, along with revenue of $6.1 billion. This is versus consensus earnings estimates for the quarter which were earnings of $3.84 per share, and revenue expectations of $6.2 billion.
On Wednesday, shares of AMGN stock closed the trading higher up 0.97%, at $220.65 per share.
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Gilead Sciences (GILD Stock)
Next, Gilead Sciences (GILD) is a biopharmaceutical company that researches, develops, and commercializes innovative medicines. Its primary areas of focus include HIV/AIDS, liver diseases such as Hepatitis C and B, oncology, inflammation, and serious respiratory and cardiovascular conditions.
Also last month, Gilead announced its 1st quarter 2023 financial results. Diving in, the company reported earnings per share of $1.37, with revenue of $6.4 billion. This came in under analysts’ consensus estimates which were earnings of $1.63 per share, and revenue of $6.3 billion.
Moreover, on Wednesday, Gilead Sciences stock finished the trading day up 0.80%, at $76.94 per share.
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