The biotech industry has received much attention lately for its contribution to the world’s fight against COVID-19. Furthermore, with the help of new technology, the industry has been making tremendous progress in developing treatments for many previously incurable ailments. Against this backdrop, we believe two significantly undervalued biotech stocks—Gilead Sciences (NASDAQ:GILD) and Regeneron Pharmaceuticals (NASDAQ:REGN)—are positioned nicely to deliver solid returns owing to the companies’ continued innovation and strong financials. Read on.Biotech companies responded to the COVID-19 pandemic in a remarkable way, with vaccinations, treatments, diagnostics, and variant monitoring. The sector is reaping big benefits as a result of these initiatives, including improved investor interest, government backing, and a burnished public image. Investor optimism surrounding the sector is evident in iShares Biotechnology ETF’s (IBB) 16.2% returns over the past year.
Furthermore, the increasing prevalence of chronic diseases throughout the world has raised the demand for medication. The global biotechnology market is expected to reach $2.44 trillion in 2028, growing at a 15.8% CAGR.
Considering the industry’s solid growth prospects, we believe shares of biotechnology companies Gilead Sciences, Inc. (GILD) and Regeneron Pharmaceuticals, Inc. (REGN) are attractively cheap at their current price levels. Therefore, investing in these stocks could be rewarding.