The increasing demand for drugs and therapies for critical diseases for an aging population in several economies should drive the biotech industry over the long term. So, fundamentally sound biotech companies Amgen (AMGN), Gilead (GILD), Illumina (NASDAQ:ILMN), and Regeneron (NASDAQ:REGN) are well-positioned to capitalize on the industry tailwinds. Thus, we think their stocks should continue gaining. Read on.Biotech companies are currently focused on developing viable drugs, therapies and medical diagnostics tests to treat critical diseases and serious ailments through tech integration. Investors have been betting on the biotech space to reap substantial returns over the long term, given the aging population and inelastic demand for medication. This is evidenced by the iShares Nasdaq Biotechnology ETF’s (IBB) 7.7% returns over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 1.8% gains.
With biotech companies leveraging next generation technology and genome mapping methods to revolutionize healthcare, the global biotechnology market is expected to grow at a 15.5% CAGR to hit $850.50 billion by 2027.
Therefore, we believe the shares of fundamentally sound biotechnology stocks Amgen Inc . (NASDAQ:AMGN), Gilead Sciences Inc . (NASDAQ:GILD), Illumina, Inc. (ILMN), and Regeneron Pharmaceuticals, Inc. (REGN) have the potential to continue soaring.