The coronavirus is kicking back into gear again, with investors licking their lips over biotech stocks. The omicron variant has roiled the world, which makes biotech’s the most pertinent investment option at this time.
Naturally, most of the market-leading biotechs are those that have generated a sizeable amount of their revenues in the past couple of years from Covid-19. The Covid-19 market has been highly lucrative for most biotechs, with some witnessing a massive turnaround in their fortunes.
The biotech sector offers a multitude of opportunities for investors. Most biotech companies ruling the roost now boast incredible drug candidate pipelines and have winning drugs in the market.
Moreover, the pandemic-led tailwinds have also multiplied the opportunities in the biotech sector. Looking ahead, the pharma industry is set to grow at roughly 5% on an annual basis from $1.3 trillion in 2020 to $1.6 trillion by 2025.
Here are three top biotech stocks to buy for 2022:
Best Biotech Stocks To Buy: Pfizer (PFE)
Pfizer struggled before the pandemic, with an unattractive portfolio and dwindling top-line growth. However, it’s been a 360-degree change after the successful release of its coronavirus vaccine.
With its antiviral drug Paxlovid, it could generate upwards of $100 billion within the next couple of years. Moreover, revenue growth on a year-over-year basis is at a staggering 114%, with EBITDA growth at 233%.
Approvals in several countries for booster shots and children are likely to increase vaccine sales within the next two years significantly. On top of that, Covid-19 could be endemic, which bodes well for sales of Pfizer’s vaccine and antiviral pill for years to come. Global sales from the company’s Covid-19 vaccine in the third quarter alone were superb $13 billion. Hence, there’s still an incredible growth runway ahead for PFE stock.
Pharma giant AbbVie has been an incredible performer, outperforming the broader market in the past five years. Over the past several years, financial results have been solid, spearheaded by its mega-blockbuster rheumatoid arthritis drug Humira. Humira is the world’s most successful drug in terms of sales.
On top of that, it boasts a highly attractive dividend profile, with almost an 18% five-year dividend growth and a 4.3% yield.
The company has been highly consistent in maintaining an upward trend in the top and bottom-line results on the financial front. In the third quarter, the enterprise generated over $14.3 billion in sales, which came in 11.2% higher than the prior-year period. Moreover, its immunology business, which includes sales of Humira, witnessed a healthy 15.3% increase to $6.8 billion from the same period last year.
AbbVie’s earnings grew 38% to roughly $1.80 per share. Additionally, it generated a truckload of cash with a 282% increase from the prior-year period in free cash flows to $21.7 billion. ABBV stock is one of the most attractive biotech stocks out there.
Best Biotech Stocks to Buy: Novavax (NVAX)
Novavax is on the verge of commercializing its highly anticipated Covid-19 vaccine. Its vaccine was recently green-lit by the World Health Organization and should receive approval elsewhere. Moreover, its several exciting products in its pipeline which could result in monster revenues next year.
The vaccine technology company has an impeccable safety record and is conducive for distribution in lower and medium-income countries. Additionally, its vaccines are also safer than other market offerings for children.
Analysts’ estimate suggests that its revenues could go from just $18.6 million in 2019 to $4.8 billion in 2022. The company has plans to produce over 2 billion Covid-19 doses next year. If it doesn’t run into production troubles, it could comfortably achieve its target, resulting in hefty returns for NVAX stockholders.
On the date of publication, Muslim Farooque 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.