In this article, we will be taking a look at the 15 best biotech stocks to buy according to billionaires.
Although biotech stocks had a “challenging” year in 2024, JPMorgan believes that some of the industry’s companies could see significant growth in the months to come. Senior partner and principal of investments at Novo Holdings, Johan Hueffer, spoke on CNBC on November 28 about his macro outlook for life sciences investments. He claimed that in the past few years, biotechs have had trouble raising funding. Over the past quarter or two, though, that tendency has begun to improve.
Nonetheless, there have been effects on businesses that specifically support the pharmaceutical sector, including contract manufacturing organizations (CMOs), research and development tools providers, and contract research organizations (CROs). Similar patterns have been noted for businesses that produce production tools for the biotech and pharmaceutical sectors. Although there have been ups and downs in these sectors over the last two years, the patterns are now beginning to stabilize. According to Hueffer, there is a lot of potential in the sector right now.
Goldman Sachs Highlights Undervalued Biotech Sector Amid Fed Rate Cuts
Likewise, Goldman Sachs clarified biotech as a frequently disregarded area of the investment world. John Flood, Head of Americas Equities Sales Trading at Goldman, wrote in a letter to clients that biotech equities offered an unnoticed opportunity for investors hoping to profit from the Fed’s recent rate decreases. Because biotech equities are sensitive to interest rate changes and frequently depend on anticipated future revenues, they are particularly impacted. The cost of capital has a significant effect on these equities as well. These equities have substantial upside potential and, should clinical studies be successful, offer an “option-like structure,” even though they are now quite unprofitable. Because of this, they are particularly sensitive to shifts in interest rates.
The Fed has lowered the funds rate by one full point since September. The present market pricing indicates that there will only be one or two additional declines in 2025, according to CNBC. The Federal Open Market Committee (FOMC) members voted to lower the central bank’s benchmark borrowing rate to the 4.25%–4.5% target range, according to a January 8 CNBC report. But they also trimmed their projections for anticipated rate cuts in 2025, assuming quarter-point increases, from four to two.
Flood’s report also emphasized how the biotech sector has recently demonstrated better fundamentals, which have been ascribed to superior clinical outcomes and a more favorable regulatory environment. Goldman’s data shows that hedge funds continue to underinvest in biotechnology despite these tailwinds. Over the previous year, the industry’s hedge fund’s long/short positioning placed it in the 13th percentile. In addition, for the previous five years, it was in the fourth percentile.
With these trends in view, let’s look at the 15 Best Biotech Stocks to Buy According to Billionaires.
A scientist in a lab conducting research on cell-based therapeutics and biotechnology.
Our Methodology
For our methodology, we selected biotech stocks from the Insider Monkey billionaire database, as of Q4 2024, focusing on those with the highest number of billionaire holdings. We then ranked these stocks based on the number of billionaire investors. In cases where multiple stocks had the same number of billionaire holders, we used the dollar value of billionaire holdings as a tiebreaker, placing stocks with lower dollar values first in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Here is our list of the 15 best biotech stocks to buy according to billionaires.
15. Cogent Biosciences, Inc. (NASDAQ:COGT)
Number of Billionaires: 12
Dollar Value of Billionaire Holdings: $94,931,294
Cogent Biosciences, Inc. (NASDAQ:COGT) is a biotechnology company focused on developing precision therapies for genetically defined diseases. Fundamentally, the business creates and develops small molecule therapies to address uncommon illnesses with substantial unmet medical needs. The main goal of the company is to develop therapies for illnesses caused by genetic abnormalities, especially in the field of oncology.
Cogent Biosciences, Inc. (NASDAQ:COGT)’s latest financial report which was released on February 25, 2025, highlights significant progress in its clinical trials. The SUMMIT trial for NonAdvSM expects results by July 2025, while the APEX trial for AdvSM has completed enrollment, with top-line data anticipated in the second half of 2025. Additionally, the PEAK trial for 2nd-line GIST is set to report results by the end of the year.
Financially, the company maintains a strong cash position, with $312 million available to sustain operations into late 2026. Its R&D expenses rose to $62 million in Q4 2024 and $232.7 million for the full year, reflecting the accelerated development of Bezuclastinib and other research programs. Its strong financial position and promising pipeline have positioned it among the best biotech stocks. General and administrative costs also increased due to organizational growth. As a result, net losses widened to $67.9 million in Q4 and $255.9 million for the full year, which was driven by higher spending to advance drug candidates.
In February 2025, Cogent Biosciences, Inc. (NASDAQ:COGT) presented promising updates from the SUMMIT and APEX trials at the American Society of Hematology (ASH) meeting, showing notable improvements in non-advSM and encouraging results in AdvSM patients. Additionally, the company expanded its pipeline by adding a potent and selective KRAS inhibitor, signaling its commitment to developing groundbreaking treatments.
14. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)
Number of Billionaires: 12
Dollar Value of Billionaire Holdings: $1,126,924,284
Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is a biopharmaceutical company focused on developing treatments for neurological, neuroendocrine, and neuropsychiatric disorders, including tardive dyskinesia, Parkinson’s disease, and endometriosis. The company stands out for its specialized focus on neuroscience-based treatments and a strong research and development pipeline aimed at addressing complex neurological and endocrine-related disorders.
Neurocrine Biosciences, Inc. (NASDAQ:NBIX)’s flagship product, INGREZZA, is used to treat tardive dyskinesia and chorea in Huntington’s disease. The company also offers CRENESSITY, a first-in-class treatment for congenital adrenal hyperplasia (CAH), and has ongoing collaborations for treatments for endometriosis and uterine fibroids. The corporation’s pipeline includes potential therapies for major depressive disorder, schizophrenia, and epilepsy, making it one of the best biotech stocks to watch.
In its Q4 2024 financial report, Neurocrine Biosciences, Inc. (NASDAQ:NBIX) saw strong growth, with INGREZZA sales reaching $615 million in Q4, a 23% increase from the previous year. Full-year INGREZZA sales were $2.3 billion, a 26% increase. The newly launched CRENESSITY contributed $2 million in sales, and total Q4 revenue was $627.7 million, up 22% from Q4 2023. The company’s R&D expenses grew to $185.6 million due to investments in new treatments, and they initiated Phase 3 programs for osavampator (for major depressive disorder) and NBI-‘568 (for schizophrenia).
Neurocrine Biosciences, Inc. (NASDAQ:NBIX) ended 2024 with a strong cash position of $1.8 billion and expects INGREZZA sales to reach between $2.5 billion and $2.6 billion in 2025. Additionally, the company launched a $300 million share repurchase program and saw positive developments like the Medicare exemption for INGREZZA and a strategic collaboration amendment with Takeda, which grants the business exclusive rights for osavampator in most territories. These factors position the corporation for continued growth and success.
13. Intra-Cellular Therapies, Inc. (NASDAQ:ITCI)
Number of Billionaires: 13
Dollar Value of Billionaire Holdings: $374,638,998
Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) is a biopharmaceutical company focused on developing small-molecule drugs for neuropsychiatric and neurological disorders, such as schizophrenia, bipolar disorder, and major depressive disorder. Its flagship product, CAPLYTA (lumateperone), is an FDA-approved treatment for schizophrenia and bipolar depression, addressing critical unmet medical needs in these areas.
Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) reported strong financial results for Q4 and full-year 2024. CAPLYTA is the company’s primary drug which saw a 51% increase in Q4 net product sales, reaching $199.2 million, and a 47% growth for the full year, totaling $680.5 million. This reflects CAPLYTA’s growing market acceptance.
The company also received FDA acceptance for a supplemental New Drug Application (sNDA) for lumateperone as an adjunctive treatment for major depressive disorder (MDD), which could significantly expand its market. However, Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) experienced increased spending, with SG&A expenses rising to $504.5 million due to commercialization and infrastructure costs, and R&D expenses growing to $236.1 million for ongoing projects.
Despite these costs, Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) ended the year with a strong cash position of $1.0 billion, up from $499.7 million in 2023, providing financial flexibility for future trials and commercialization efforts.
12. Illumina, Inc. (NASDAQ:ILMN)
Number of Billionaires: 13
Dollar Value of Billionaire Holdings: $308,613,702
Illumina, Inc. (NASDAQ:ILMN), standing twelfth among best biotech stocks to buy according to billionaires, is a leading biotech company specializing in genetic sequencing and analysis. It develops and sells advanced tools for DNA sequencing, serving researchers, healthcare providers, and pharmaceutical companies worldwide. The company stands out as a pioneer in next-generation sequencing (NGS) technology, with its sequencing by synthesis (SBS) method setting the industry standard for accuracy and efficiency, giving it a strong competitive edge.
Illumina, Inc. (NASDAQ:ILMN)’s Q4 2024 financial report reflects resilience and growth potential. The company’s core revenue reached $1.1 billion, marking a 1% increase from Q4 2023, though full-year revenue declined by 2% to $4.3 billion. Despite this, the business improved its operating margins, with GAAP operating margin at 15.8% and non-GAAP at 19.7%.
Looking ahead to 2025, the company expects modest revenue growth in the low single digits. The company also aims to strengthen profitability, targeting a 23% non-GAAP operating margin and projected earnings per share between $4.50 and $4.60.
To drive future growth, the corporation is expanding its technological and scientific collaborations. It has partnered with NVIDIA to enhance multi-omic data analysis and is launching a proteomics pilot program with UK Biobank and biopharma collaborators. Additionally, investments in the Truveta Genome Project and a partnership with Regeneron aim to advance scientific innovation. Illumina, Inc. (NASDAQ:ILMN) is also expanding its NovaSeq X Series and TruSight Oncology solutions to reinforce its market leadership.
11. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Number of Billionaires: 13
Dollar Value of Billionaire Holdings: $1,102,150,742
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a global biotechnology company that develops medicines for rare serious diseases and stands eleventh among the best biotech stocks. It has four approved medications for the treatment of cystic fibrosis (CF), and one approved treatment for transfusion-dependent beta-thalassemia (TDT) and severe sickle cell disease (SCD). Clinical-stage initiatives for several conditions, such as TDT, SCD, CF, acute and neuropathic pain, APOL1-mediated kidney disease, type 1 diabetes, myotonic dystrophy type 1, and alpha-1 antitrypsin deficiency, are part of the company’s product pipeline.
Despite challenges in healthcare, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) has outperformed the market and its biotech peers since 2022. With a stronghold in the cystic fibrosis market, the recent approval of Alyftrek, and patents secured into the 2030s, the company faces little competition, keeping investors bullish.
Investors are interested in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) following the approval of Journavx, a non-opioid painkiller for acute pain. With strong efficacy and no addiction risk, it marks the first new class of pain medicine in over 20 years. The corporation reported strong Q4 2024 revenue of $2.91 billion, a 16% increase from Q4 2023. For the full year, it reached over $11 billion, surpassing growth expectations.
10. Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)
Number of Billionaires: 13
Dollar Value of Billionaire Holdings: $1,356,633,560
Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is a clinical-stage biopharmaceutical company focused on developing therapies for liver and metabolic diseases, particularly nonalcoholic steatohepatitis (NASH). Its lead drug, resmetirom, targets thyroid hormone receptor beta (THR-β) and has shown promising results in reducing liver fat by 48% in clinical trials.
Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) reported strong sales growth for Q4 2024, with net sales reaching $103.3 million, a 66% increase from the previous quarter. For the full year 2024, the company achieved $180.1 million in sales, which was primarily driven by the successful launch of its drug Rezdiffra. By the end of Q4, over 11,800 patients were using the drug. Despite the strong sales, the business’s R&D expenses decreased to $25.6 million for Q4, reflecting improved efficiency, while SG&A expenses rose to $141.2 million due to investments in commercial infrastructure. The company ended 2024 with a solid cash position of $931.3 million.
Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)’s growth is attributed to the rapid adoption of Rezdiffra, with the 66% quarter-over-quarter increase suggesting strong market penetration. Additionally, Rezdiffra’s inclusion in updated treatment guidelines by leading liver societies in Europe and the US further supports its clinical value and adoption in the healthcare community.
9. Exelixis, Inc. (NASDAQ:EXEL)
Number of Billionaires: 13
Dollar Value of Billionaire Holdings: $1,595,552,784
Exelixis, Inc. (NASDAQ:EXEL) is focused on developing targeted cancer treatments. It specializes in molecular therapies that treat hard-to-treat cancers by targeting specific genetic mutations. The company generates revenue from its key drugs, CABOMETYX, COMETRIQ, and COTELLIC, along with licensing deals, royalties, and research collaborations.
Since the early 2000s, Exelixis, Inc. (NASDAQ:EXEL) has been involved in immunology research. One of their collaborations in 2002 revealed a new function for the PGRP-LC gene in Drosophila immunity, indicating that human immune systems may follow similar pathways. The business sought partnerships in immuno-oncology, including a 2022 deal with BioInvent that ended in 2024 and a 2024 cooperation with Merck to test zanzalintinib in conjunction with Merck’s immunotherapies for renal cell carcinoma and head and neck cancer. As one of the best biotech stocks in the field, Exelixis is expanding its biotherapeutics pipeline with an emphasis on tyrosine kinase inhibitors and innovative immuno-oncology therapies, while conducting clinical trials such as the STELLAR-001 and STELLAR-305 trials to investigate combinations of its compounds with immunotherapies.
With overall revenues of about $567 million in Q4 2024, Exelixis, Inc. (NASDAQ:EXEL) announced solid financial success. This was primarily due to a 20% year-over-year growth in U.S. cabozantinib (Cabo) franchise net product revenues, which reached $515 million. With full-year revenues of $2.5 billion, global Cabo revenues for the fourth quarter came to almost $690 million. Additionally, the business received $51.5 million in cooperation revenues, mostly from the sale of cabozantinib royalties. The company’s GAAP net income was $139.9 million while operating expenses came to $403 million. In 2024, the business also bought back $656 million worth of shares, and at the end of the year, it had $1.75 billion in cash and marketable securities. Continued demand for its CABOMETYX treatment for renal cell carcinoma is shown in the growth.
8. Incyte Corporation (NASDAQ:INCY)
Number of Billionaires: 13
Dollar Value of Billionaire Holdings: $2,939,417,214
Incyte Corporation (NASDAQ:INCY) is a biopharmaceutical company at the forefront of biotechnology, focusing on drug discovery, clinical development, and commercialization of targeted therapies. It specializes in oncology, inflammation, and autoimmunity, investing heavily in research and development to expand its pipeline of innovative treatments. The company’s approved products like Jakafi and Opzelura showcase its commitment to addressing unmet medical needs with novel therapies.
For Q4 2024, Incyte Corporation (NASDAQ:INCY) reported strong financial results, with total revenue reaching $4.2 billion, a 15% increase from 2023. The growth was driven by higher sales of Jakafi, which saw net sales of $2.8 billion, up 8% from the previous year, and Opzelura, which grew by 50% to $508 million. As one of the best biotech stocks in the market, the company’s Q4 revenue was $1.2 billion, reflecting a 16% year-over-year increase. The company also ended the year with $2.2 billion in cash, providing financial flexibility for future investments and strategic initiatives.
Incyte Corporation (NASDAQ:INCY)’s R&D expenses rose to $466 million in Q4, reflecting the company’s ongoing commitment to advancing its pipeline. SG&A expenses also increased due to marketing efforts related to Monjuvi. Additionally, the business is making progress with Opzelura in treating prurigo nodularis, with Phase 3 data expected soon, potentially expanding its market reach.
7. Insmed Incorporated (NASDAQ:INSM)
Number of Billionaires: 14
Dollar Value of Billionaire Holdings: $678,946,853
The seventh stock on our list of the best biotech stocks to buy according to billionaires is Insmed Incorporated (NASDAQ:INSM). It is a global biopharmaceutical company focused on developing treatments for rare diseases, particularly those affecting the lungs. Its leading therapy, ARIKAYCE (amikacin liposome inhalation suspension), is used to treat Mycobacterium avium complex (MAC) lung disease in patients with limited treatment options. The company is also developing other therapies, including Brensocatib, a drug for bronchiectasis, and TPIP, a treatment for pulmonary hypertension related to lung diseases.
In its Q4 2024 financial report, Insmed Incorporated (NASDAQ:INSM) announced record revenue growth of 19%, reaching $363.7 million for the year. The company saw strong performance across different regions: US revenue grew by 14%, Japan’s by 33%, and Europe and the rest of the world by 39%. Its ARIKAYCE continues to drive growth, with revenue projections for 2025 expected between $405 million and $425 million.
Insmed Incorporated (NASDAQ:INSM) finished 2024 with a solid cash position of over $1.4 billion, though it reported a Q4 cash burn of $191 million due to investments in Brensocatib’s launch. Despite these costs, the company’s research and development (R&D) expenses were significant at $599 million, and selling, general, and administrative (SG&A) expenses were $462 million. Encouraging Phase III results for Brensocatib also supports the drug’s potential for FDA approval and future commercial success.
6. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Number of Billionaires: 14
Dollar Value of Billionaire Holdings: $1,000,661,724
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is focused on developing life-changing medicines for serious diseases, including eye conditions, cancer, inflammation, and rare genetic disorders. What makes the company unique is its advanced VelociSuite technology, which accelerates drug discovery and genetic medicine development, helping turn scientific breakthroughs into effective treatments.
In Q4 2024, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) reported strong financial growth, with $3.8 billion in revenue—a 10% increase from the previous year. Its net income reached $1.4 billion, and full-year revenue totaled $14.2 billion. The company maintained an impressive 86% gross margin and generated $3.7 billion in free cash flow, showcasing its financial strength.
Key products like Dupixent, Libtayo, and EYLEA fueled the company’s growth. Dupixent remains a major success, treating over a million patients worldwide, with potential for new uses. Meanwhile, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is advancing new treatments for multiple myeloma and lymphoma, which could expand its presence in oncology.
Despite its success, the business faces challenges in the anti-VEGF market, with growing biosimilar competition impacting EYLEA sales. The company will need to navigate these pressures while continuing its focus on innovation and expansion.
5. Amgen Inc. (NASDAQ:AMGN)
Number of Billionaires: 14
Dollar Value of Billionaire Holdings: $1,412,039,283
Amgen Inc. (NASDAQ:AMGN) discovers, develops, manufactures, and markets human therapeutics. It provides patients with complicated tumors with innovative treatments, particularly in regions where there are a lot of unmet needs. The corporation had 14 medications at the end of fiscal Q4 2024, each of which had an annualization of over $1 billion. Over the course of the decade, a number of them are anticipated to be important growth drivers for the business.
Additionally, Amgen Inc. (NASDAQ:AMGN) has a robust rare illness portfolio that is anticipated to grow in 2025 with the possible international regulatory approval of TEPEZZA, the first and only FDA-approved medication for the treatment of Thyroid Eye disease (TED). As one of the best biotech stocks in the industry, it is anticipated that the company’s rare disease business will continue to grow as additional indications for UPLIZNA, which treats neuromyelitis optica spectrum disorder (NMOSD), are introduced.
EVENITY, which targets osteoporosis in postmenopausal women, and Repatha, which addresses heart disease and cholesterol, are two medications that consistently provide the company with robust growth. The product Repatha has grown to be worth billions of dollars. Its rise is being further fueled by heart disease, the world’s leading cause of mortality. With the anticipated five-year payoff from its October 2023 acquisition of Horizon Therapeutics, analysts are optimistic about the stock.
PGIM Jennison Health Sciences Fund stated the following regarding Amgen Inc. (NASDAQ:AMGN) in its Q2 2024 investor letter:
“Amgen Inc. (NASDAQ:AMGN) is a large-cap global biotech company with a diverse portfolio of marketed and pipeline products. Amgen’s discovery pipeline has led the company to broaden its focus from oncology, immunology, and renal disease to include musculoskeletal, cardiovascular, and neurologic conditions. In addition, Amgen has turned its expertise in antibody manufacturing into a leading position in the development of biosimilars of competitor drugs. Most recently, Amgen shares advanced in 2Q following its announcement that its novel injectable GLP-1 agonist / GIPR antagonist, MariTide, for obesity, showed promising interim Phase 2 data and has shown enough promise to warrant advancement into pivotal trials as soon as late 2024. While Eli Lilly and Novo Nordisk will remain the market leaders in the diabetes/obesity space, we think there is room for Amgen to carve out a meaningful share of the market with its antibody-peptide conjugate approach that could enable monthly or better dosing for MariTide.”
4. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Billionaires: 14
Dollar Value of Billionaire Holdings: $1,652,723,748
Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company that advances medicines to prevent and treat serious diseases such as cancer, immunodeficiency virus (HIV), viral hepatitis, and COVID-19. Its pharmacological portfolio, which includes AmBisome, Atripla, Biktarvy, Cayston, Complera, and others, focuses on medical areas with unmet needs.
Gilead Sciences, Inc. (NASDAQ:GILD)’s fiscal Q4 2024 revenue hit $7.6 billion, a 6% year-over-year increase. Its adjusted EPS increased by around 10.5% year over year to $1.90, exceeding analyst projections, while its GAAP EPS showed an increase of about 25% year over year.
Positive data is also shown by the company’s HIV revenues, which increased 8% to $19.6 billion in 2024, surpassing its 5% growth forecast. Biktarvy, an HIV medication, saw a 13% increase in full-year sales. The HIV division of Gilead Sciences, Inc. (NASDAQ:GILD) has had a history of steady growth, growing by 5% in 2022, 6% in 2023, and 8% in 2024. Its excellent execution and robust innovation are responsible for this growth.
Gilead Sciences, Inc. (NASDAQ:GILD) issued optimistic 2025 guidance in addition to these impressive results, anticipating much higher numbers and better performance. Non-GAAP diluted EPS is expected to be between $7.70 to $8.10 by management, as opposed to $4.62 for the entire year 2024.
3. Natera, Inc. (NASDAQ:NTRA)
Number of Billionaires: 14
Dollar Value of Billionaire Holdings: $2,302,821,195
Natera, Inc. (NASDAQ:NTRA), standing third among the best biotech stocks to buy according to billionaires, is a clinical genetic testing company specializing in non-invasive cell-free DNA (cfDNA) technology. It offers genetic tests in women’s health, oncology, and organ health, with its flagship product, Panorama, a prenatal test that screens for genetic disorders as early as nine weeks of pregnancy. The company stands out for its innovative use of cfDNA technology, combining molecular biology, bioinformatics, and AI to detect genetic abnormalities with high sensitivity and accuracy, giving it a competitive edge in the biotech sector.
Natera, Inc. (NASDAQ:NTRA)’s Q4 2024 financial results show strong growth and improving financial health. Total revenue reached $476.1 million, up 53% from Q4 2023, which was driven by a 53.9% increase in product revenues. The company also saw a significant jump in test volume, processing 792,800 tests, a 26.5% increase from the previous year, with oncology tests rising by 54.7%. Gross margin improved to 62.9% from 51.4% in Q4 2023, reflecting higher efficiency.
For the full year, Natera, Inc. (NASDAQ:NTRA)’s revenues totaled $1.7 billion, a 56.7% increase, with a gross margin of 60.3%. This growth was fueled by higher test volumes and better pricing strategies. Although operating expenses rose due to an increase in headcount and legal costs, they grew at a slower rate than revenue, showing better operational efficiency. Despite reporting a net loss of $53.8 million for Q4 2024 and $190.4 million for the full year, the company’s reduced losses compared to last year signal progress toward profitability.
2. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Number of Billionaires: 15
Dollar Value of Billionaire Holdings: $1,191,063,655
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) develops and markets specialized therapies for rare genetic diseases, focusing on enzyme replacement treatments and other biopharmaceuticals. The company stands out for its dedication to rare diseases, successfully bringing eight breakthrough medicines to market, including treatments for achondroplasia, severe hemophilia A, and lysosomal storage diseases.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) delivered strong financial results for Q4 2024, showing solid growth across key areas. Its total revenue rose 18% to $2.85 billion for the year, with Q4 revenue up 16% to $747 million. VOXZOGO sales surged 56% to $735 million, reflecting increased adoption for achondroplasia, while enzyme therapies contributed over $1.9 billion, growing 12% from 2023.
The corporation’s profitability improved significantly, with the non-GAAP operating margin expanding to 28.6% for the year and 31.1% in Q4. Earnings per share (EPS) jumped 69% to $3.52, and Q4 EPS rose 88% to $0.92, which was driven by revenue growth and operational efficiency. Operating cash flow also saw a massive 260% increase to $573 million, providing financial flexibility for future investments.
Looking ahead, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) expects 2025 revenue between $3.1 billion and $3.2 billion, with a 10% growth outlook. Margins are projected to improve further, with non-GAAP operating margins between 32%-33% and EPS between $4.20 and $4.40. This indicates continued efficiency and profitability.
Beyond financials, the business is advancing its drug pipeline, with early clinical data for BMN 351 (Duchenne Muscular Dystrophy) and BMN 333 expected later this year. These developments could drive further growth and impact the stock positively.
1. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Billionaires: 18
Dollar Value of Billionaire Holdings: $5,019,379,171
Intuitive Surgical, Inc. (NASDAQ:ISRG) leads in robotic-assisted surgery with its da Vinci system, improving precision in complex procedures. The company earns revenue through system sales, along with ongoing income from instruments, accessories, and service contracts. Its “razor-and-blades” model generates steady income from recurring sales after the initial system sale.
Significant growth was also shown in Intuitive Surgical, Inc. (NASDAQ:ISRG) fiscal Q4 2024 statistics, with Da Vinci treatments rising by 18%. Additionally, overall revenue surpassed the forecast of $2.24 billion, rising by 25% to $2.41 billion. The market for surgical robotics is dominated by Intuitive Surgical, Inc. (NASDAQ:ISRG). Grand View Research projects that until 2030, the surgical robots industry will expand at a compound annual growth rate of 9.5%. By then, the global market is expected to be valued at approximately $7.4 billion, up from $4.3 billion the previous year. The market has room to expand in the upcoming years and decades thanks to the quick development of medical technology.
The management of Intuitive Surgical, Inc. (NASDAQ:ISRG) has voiced optimism for 2025, projecting a 13%–16% increase in da Vinci procedures globally. As one of the best biotech stocks, this optimism follows the Food and Drug Administration’s approval of the company’s latest-generation da Vinci 5, a sophisticated system that blends AI and machine learning with a more digital interface.
Baron Health Care Fund stated the following regarding Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q2 2024 investor letter:
“Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures the da Vinci Surgical System, a robotic surgical system used for minimally invasive procedures. The stock performed well due to excitement about the company’s new robotic surgical system, the da Vinci 5, which offers enhanced imaging, force feedback, and other improvements. We continue to believe Intuitive has durable competitive advantages and will remain the market leader in robotic surgery. We think the company has a long runway for growth as more procedures are performed with the company’s equipment.”
Overall, Intuitive Surgical, Inc. (NASDAQ:ISRG) ranks first among the 15 best biotech stocks to buy according to billionaires. While we acknowledge the potential of biotech companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ISRG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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