Biotechnology stocks are among the most high-risk, high-reward stocks in the market. Many biotech companies are working to develop one or or even a handful of world-changing drugs to address billion-dollar markets. The fates of these often volatile stocks are tied closely to study data and approval decisions from the U.S. Food and Drug Administration or other drug regulators.
The biotech group struggled as a whole in 2024, but analysts say the innovation that has always supported the biotech industry is alive and well. Here are seven top biotech stocks with “buy” or “hold” ratings from Argus analysts:
Vertex Pharmaceuticals Inc. (VRTX)
Vertex Pharmaceuticals specializes in developing therapies to treat cystic fibrosis, or CF. Vertex also owns the rights to 60% of the profits from sales of CRISPR Therapeutics AG’s (CRSP) gene-editing therapy exa-cel, which was approved by the FDA for treating sickle cell disease in December 2023 and for treating transfusion-dependent beta thalassemia just six weeks later. Analyst Jasper Hellweg says he is bullish on Vertex’s growth outlook thanks to its market-leading CF portfolio, its successful diversification outside of CF and its healthy balance sheet. Argus has a “buy” rating and $550 price target for VRTX stock, which closed at $408.32 on Jan. 7.
Regeneron Pharmaceuticals Inc. (REGN)
Regeneron Pharmaceuticals develops therapies to treat metabolic disorders, inflammatory diseases, cancer and respiratory conditions. Hellweg says Regeneron’s sales should benefit from several tailwinds in 2025, including recent regulatory approvals of Dupixent for treating chronic obstructive pulmonary disease, eosinophilic esophagitis and chronic rhinosinusitis with nasal polyps. Looking ahead, Regeneron has also reported positive long-term data on Eylea HD and Libtayo. Hellweg says Regeneron has an attractive valuation and an encouraging pipeline of future products to support growth. Argus has a “buy” rating and $1,000 price target for REGN stock, which closed at $730.30 on Jan. 7.
Iqvia Holdings Inc. (IQV)
Iqvia is a clinical research company that provides health care data solutions. Analyst David Toung says Iqvia’s business model is relatively resistant to short-term market shocks, potentially making it an excellent defensive biotech investment. Toung says Iqvia has impressive new technology offerings and a large order backlog. He is bullish on the company’s high-visibility revenue, industry leadership position, track record of technology innovations, contract win momentum and impressive growth outlook. Toung is particularly optimistic about Iqvia’s opportunities in outsourced clinical trials management and biopharma commercialization services. Argus has a “buy” rating and $260 price target for IQV stock, which closed at $202.65 on Jan. 7.
United Therapeutics Corp. (UTHR)
United Therapeutics develops treatments for cardiovascular conditions, cancer and infectious diseases. The company’s leading drug is pulmonary arterial hypertension drug treprostinil, which is branded as Tyvaso in inhalable form. The company is also testing treprostinil for treating idiopathic pulmonary fibrosis and progressive pulmonary fibrosis, other diseases that disrupt the lungs’ ability to transfer oxygen effectively. Hellweg says Tyvaso has performed well, and United has made significant progress on its organ manufacturing and transplant program. He says the company also has a healthy balance sheet. Argus has a “buy” rating and $400 price target for UTHR stock, which closed at $362.33 on Jan. 7.
Bio-Techne Corp. (TECH)
Bio-Techne develops, manufactures and sells biotechnology reagents and instruments for the research and clinical diagnostic markets. Toung says Bio-Techne has long-term growth drivers in molecular diagnostics, life sciences and spatial biology. Management has been optimistic about accelerating revenue growth and margin expansion in the second half of fiscal 2025, but Toung says investors should be prepared for a potentially bumpy ride. He says the company’s ExoDX prostate test and its Asuragen genetics and cancer testing kits have been particularly strong performers as of late. Argus has a “buy” rating and $95 price target for TECH stock, which closed at $74.77 on Jan. 7.
Moderna Inc. (MRNA)
Moderna specializes in mRNA therapeutics. Investors likely know of Moderna because of its popular COVID-19 vaccines, but the global recovery from the COVID-19 pandemic has not been kind to Moderna’s stock. Slumping vaccine sales have triggered an 80% drop in Moderna’s share price in the past three years. Hellweg says he is cautious on the stock over the medium term, but he maintains a bullish outlook for Moderna over the next five years as the company rolls out additional commercial products. Argus has a “hold” rating for MRNA stock with no 12-month target price.
Charles River Laboratories International Inc. (CRL)
Charles River Laboratories provides purpose-bred rodents for drug testing, drug discovery, and safety and manufacturing services. Like Moderna, Charles River has struggled to maintain the momentum it gained during the COVID-19 pandemic. Toung is cautious on Charles River’s outlook in 2025, but he says the stock has significant long-term upside over the next five years and projects 9% annual earnings-per-share growth over that period. He says the company’s ongoing restructuring efforts, which include consolidating its facilities, will ultimately lead to higher profit margins once Charles River returns to revenue growth. Argus has a “hold” rating for CRL stock with no 12-month target price.