In this article, we discuss 12 biotech stocks with biggest upside. If you want to skip our detailed discussion on the recent developments in the biotech industry, you can go directly to 5 Biotech Stocks with Biggest Upside.
According to Precedence Research, the size of the biotechnology industry stood at $1.22 trillion at the end of 2022. The industry is set to compound annually at an average rate of 12.8% to reach $3.21 trillion by 2030. Governments across the world are providing favorable initiatives to this industry, given its strong growth potential. The biotechnology industry owes much of its growth to biopharmacy, which currently holds the largest market share at 41.5% as of 2022. The field of biotechnology is witnessing substantial progress in the development of innovative strategies to address diseases and genetic disorders.
Over the past decade, significant milestones have been achieved in early disease detection and the development of treatments for life-threatening conditions such as HIV, malaria, and tuberculosis (TB) due to the application of genomic analytical techniques. Furthermore, the rapid development of mRNA-based COVID-19 vaccines by some of the best biotech stocks like Pfizer Inc. (NYSE:PFE), BioNTech SE (NASDAQ:BNTX), and Moderna, Inc. (NASDAQ:MRNA) during the pandemic demonstrated the potential of biotech innovation. As of 2022, global biotech drug sales were valued at an impressive $421 billion. Interestingly, biopharmaceuticals or biotech drugs accounted for a substantial 40% share of the global drug sales market.
The potential of the biotechnology industry can be gauged by the fact that leading Danish pharmaceutical company Novo Nordisk A/S (NYSE:NVO) has leveraged the power of recombinant DNA biotechnology to develop Wegovy, an injectable drug for chronic weight management. It was approved by the FDA in 2021. According to ResearchAndMarkets.com, the estimated size of the global weight loss and weight management market is expected to grow at a CAGR of 7.2% to reach $425.4 billion by 2033. The drug works by mimicking the activity of a gut hormone that reduces appetite. It helps patients feel fuller faster and for a longer period of time. It is approved for long-term weight management in overweight adults who have at least one obesity-related health condition. Following the launch of Wegovy in the UK, Novo Nordisk A/S (NYSE:NVO) has become the most valuable European company with a market capitalization of $437.2 billion as of September 8.