To The Moon

A few years back, $Eli Lilly(LLY)$ wasn't the hottest ticket in biopharma. But today, it's a juggernaut in global healthcare. So, is Eli Lilly still the top pick for healthcare investors? Let's check out three biotech stocks worth buying:

1. $Amgen(AMGN)$

Eli Lilly's stock has surged over 50% this year, while Amgen's gains have been in the single digits. Amgen even reported a net loss in Q1 2024 under GAAP.

But where Amgen really shines is valuation—it beats Eli Lilly hands down. Amgen's forward P/E ratio is less than 16.2x, while Lilly's is a hefty 66.7x. And on dividends, Amgen trumps Lilly with a forward dividend yield of 2.9% versus Lilly's paltry 0.6%.

2. $Vertex Pharmaceuticals(VRTX)$

Eli Lilly's expected growth is largely priced in, but that's not the case for VRTX. Sure, Vertex's forward P/E ratio of 29x is relatively high, but its PEG ratio of 0.6 signals attractive valuation.

Vertex's growth hinges partly on the cystic fibrosis (CF) market and potentially significant non-CF drugs like inaxaplin, currently in Phase 3 for APOL1-mediated kidney disease (AMKD).

3. $Viking Therapeutics(VKTX)$

Unlike Eli Lilly, Amgen, and Vertex, VKTX hasn't yet launched any approved products and remains unprofitable. Yet, with a market cap of under $6 billion and promising pipelines, this biotech could have the most room to grow.

Earlier this year, Viking reported promising Phase 2 results for its obesity experimental drug VK2735. Success in Phase 3 trials and regulatory approval could skyrocket Viking's value.

Additionally, Viking's VK2809 is in Phase 2 for treating non-alcoholic steatohepatitis (NASH), a market analysts predict could hit $100 billion—rivaling the obesity drug market.