October is generally not considered the best time to invest in U.S. stocks. Historically, this month has seen declines and even market crashes. However, investing in resilient companies that can weather bull and bear markets is always wise. This includes biotech stocks.
Let’s take a closer look at two biotech firms that fit this description: $Amgen(AMGN)$ and $Vertex Pharmaceuticals(VRTX)$.
1. $Amgen(AMGN)$
Amgen has faced revenue challenges in recent years. In Q2, the company reported a 20% increase in revenue to $8.4 billion. However, excluding the impact of its acquisition of Horizon Therapeutics, organic growth was just 5%. While this is decent for a biotech giant, it doesn’t stand out.
To address these challenges, Amgen has made strategic moves. The acquisition of Horizon brought in Tepezza, a breakthrough treatment for Thyroid Eye Disease (TED), which is the first FDA-approved drug for this condition and recently gained approval in Japan.
Alongside this, Amgen is developing several promising therapies, notably the GLP-1 weight-loss drug MariTide, which has shown positive results in Phase II trials. Evaluate Pharma estimates that MariTide could generate $2.1 billion in sales by 2030.
Additionally, Amgen is a strong dividend payer. Over the past decade, its dividend has increased by 269%, with a current forward yield of about 2.8%, significantly higher than the $S&P 500(.SPX)$ ’s average of 1.3%.
2. $Vertex Pharmaceuticals(VRTX)$
Vertex Pharmaceuticals is firing on all cylinders and maintains its monopoly in the cystic fibrosis (CF) treatment market, posting a 6% revenue increase to $2.65 billion in Q2. New, enhanced CF therapies are awaiting approval and could boost revenue growth further.
Vertex is also collaborating with $CRISPR Therapeutics AG(CRSP)$ on a gene-editing therapy called Casgevy, approved in several countries for two blood disorders. Although gene-editing is complex and time-consuming, the potential impact on Vertex's performance is immense.
Earlier this year, Vertex submitted an application to the FDA for suzetrigine, a novel acute pain medication. Unlike existing opioids, which often come with severe side effects, suzetrigine aims to fill a crucial gap in pain management.
Vertex focuses on developing treatments for areas with significant unmet needs. Its pipeline includes several promising candidates, such as Inaxaplin for APOL-1-mediated kidney disease, which currently has no approved treatment. The company is also working on a potential functional cure for Type 1 diabetes—an area without existing solutions.
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