Biotech companies have experienced exponential growth over the past year owing to their contribution to efforts to combat the COVID-19 pandemic. The rising demand for medicines and therapies for treating several other critical diseases and significant breakthroughs in developing customized drugs are expected now to boost the industry’s growth further. So, we believe fundamentally strong biotech stocks Genmab (NASDAQ:GMAB) and Bio-Techne (NASDAQ:TECH) have plenty of upside potential. Read on.Biotech companies’ success in responding to the COVID-19 pandemic by rapidly developing COVID-19 medicines and vaccines exemplified the sector's importance and garnered significant investor attention. Furthermore, the growing popularity of gene therapies and the increasing prevalence of chronic diseases worldwide have boosted the demand for blockbuster drugs developed by biotech companies. And investors’ optimism surrounding the biotech space is evident in the iShares Biotechnology ETF (IBB) 19.9% return over the past year.
Favorable government regulations, coupled with the introduction of new and sophisticated products, and growing demand for synthetic biology, should keep driving the biotech industry’s growth. Indeed, the global biotechnology market is expected to reach $2.44 trillion in 2028, growing at a 15.8% CAGR.
Considering the industry’s promising growth prospects, we believe shares of biotechnology companies Genmab A/S (GMAB) and Bio-Techne Corporation (TECH) are well-positioned to deliver exceptional returns in the coming months. So, these stocks could be wise bets now.