In this piece, we will take a look at the 5 Most Profitable Biotech Stocks Today. For more such companies, go to the 12 Most Profitable Biotech Stocks Today.
5. AbbVie Inc. (NYSE:ABBV)
Net Income TTM: $11.83 billion
With over 50,000 employees in 70+ countries, AbbVie Inc. (NYSE:ABBV) develops and delivers innovative treatments for over 60 conditions across areas such as immunology, oncology, neuroscience, and virology. According to the company, its products help over 62 million people annually across 175 countries.
On February 9, 2023, AbbVie Inc. (NYSE:ABBV) posted its Q4 2022 result, reporting revenue of $15.12 billion, falling short of the market projection by $215.9 million. The company’s Normalized EPS for the quarter stood at $3.6, surpassing analysts’ estimates by $0.02.
As per Insider Monkey’s database, 73 hedge funds held stakes worth $1.5 billion in AbbVie Inc. (NYSE:ABBV) in Q4 2022, compared to 80 funds in the prior quarter with stake worth $1.8 billion.
Alger Capital made the following comment about AbbVie Inc. (NYSE:ABBV) in its Q4 2022 investor letter:
“AbbVie Inc. (NYSE:ABBV) is a global biopharmaceutical company that develops and markets drugs in areas such as immunology. virology and oncology. Recently, the company expanded through the acquisition of Allergan, which added robust growth assets to help offset the loss of U.S. patent protection for Humira, a leading treatment used for rheumatology, dermatology. gastroenterology, and ophthalmology. While AbbVie reported weak third quarter revenues across the board, the U.S. Food and Drug Administration (FDA) approved Vraylar (an antipsychotic treatment) in December. Despite concerns around Humira’s loss of patent protection, we believe AbbVie has significantly diversified its revenue and that its launch of Rinvog for psoriatic arthritis and atopic dermatitis could be promising.”
4. Merck & Co., Inc. (NYSE:MRK)
Net Income TTM: $14.51 billion
Founded in 1981, Merck & Co., Inc. (NYSE:MRK) is an American pharmaceutical company. In April 2021, Merck purchased Pandion Therapeutics, Inc., a clinical-stage biotech company focused on developing innovative therapies to address the needs of people living with autoimmune diseases. Merck & Co., Inc. (NYSE:MRK) has also formed a partnership with Gilead Sciences, Inc. to co-develop and market long-acting HIV treatments.
On February 02, 2023, Merck & Co., Inc. (NYSE:MRK) announced its Q4 2022 results, reporting revenue of $13.83 billion, surpassing analysts’ projections by $174 million. Additionally, the company’s Normalized EPS was reported at $1.62, exceeding Wall Street’s estimates by $0.08.
According to Insider Monkey’s database, 77 hedge funds held stakes worth $5.1 billion in Merck & Co., Inc. (NYSE:MRK) in Q4 2022, compared to 82 funds in the prior quarter with stake worth $4.7 billion.
3. Roche Holding AG (OTC:RHHBY)
Net Income TTM: $15.86 billion
Roche Holding AG (OTC:RHHBY) is a multinational healthcare company headquartered in Switzerland. The company operates in two divisions: Pharmaceuticals and Diagnostics. Roche Holding AG (OTC:RHHBY)’s independent subsidiary, Genentech, is a pioneer in biotech and serves as the base for the company’s US operations. The company’s 2022 Annual Report states that it has a global workforce of over 100,000 employees, and its medicines have benefited 14.2 million patients worldwide.
As per Insider Monkey’s database, 2 hedge funds held stakes worth $498 million in Roche Holding AG (OTC:RHHBY) in Q4 2022, compared to 2 funds in the prior quarter with stake worth $485 million.
2. Johnson & Johnson (NYSE:JNJ)
Net Income TTM: $17.94 billion
Johnson & Johnson (NYSE:JNJ) is an American company operating in the pharmaceutical and healthcare industry. Janssen Biotech, its subsidiary, specializes in the development and marketing of biopharmaceutical products that address various medical conditions. The company employs 40,000 people worldwide and owns multiple patents, including that of STELARA, the largest product in the group’s portfolio.
On January 24, 2023, Johnson & Johnson (NYSE:JNJ) reported its Q4 2022 result, reporting revenue of $23.7 billion, falling short of market estimates by $194.7. The company’s Normalized EPS stood at $2.35, beating analysts’ average estimates by $0.11.
According to Insider Monkey’s database, 84 hedge funds held stakes worth $5.5 billion in Johnson & Johnson (NYSE:JNJ) in Q4 2022, compared to 85 funds in the prior quarter with stake worth $5.4 billion.
Here’s what Distillate Capital Partners LLC said about Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter:
“Johnson & Johnson was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”
1. Pfizer Inc. (NYSE:PFE)
Net Income TTM: $31.37 billion
Pfizer Inc. (NYSE:PFE) is a multinational pharmaceutical and biotech company based in the United States that operates a biopharma business which spans various therapeutic areas, such as vaccines, oncology, internal medicine, inflammation and immunology, and rare diseases. In partnership with BioNTech SE (NASDAQ:BNTX), this division worked to create the COVID-19 vaccine. As of December 11, 2022, over 4.3 billion doses of the Pfizer-BioNTech COVID-19 vaccine have been sent to 181 countries worldwide.
On January 31, 2023, Pfizer Inc. (NYSE:PFE) announced its Q4 2022 result, reporting revenue of $24.2 billion, beating market estimates by $98 million. The company’s Normalized EPS stood at $1.14, exceeding market expectations by $0.10.
As per Insider Monkey’s database, 75 hedge funds held stakes worth $2.5 billion in Pfizer Inc. (NYSE:PFE) in Q4 2022, compared to 77 funds in the prior quarter with stake worth $2.4 billion.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also take a look at Bill Gates’ Current Portfolio: 10 Dividend Stocks and 10 Best March Dividend Stocks to Buy.
