If You Can Only Buy One Biotech Stock in July, It Better Be One of These 3 Names

Industry Overview - The Nasdaq Biotechnology Index, which includes 215 biotech and pharmaceutical stocks, is up nearly 8% year-to-date, but this performance is less than half of the Nasdaq 100 [1] - The index has historically experienced long upcycles, gaining 341% from August 2011 to July 2015, and it has increased 33% since late October 2023 [1] Company Analysis: Gilead Sciences (GILD) - Gilead Sciences has a market capitalization of $91.6 billion, with shares down over 9% in 2024 and only up 13% over the past five years [2] - The company is known for its Hepatitis C cure and HIV prevention, currently working on over 20 oncology treatments, aiming to be a top 10 oncology company by 2030 [2] - Biktarvy, its leading drug, generated $2.9 billion in Q1 2024, accounting for 43% of total revenue, with a 10% year-over-year increase [2][3] - Other significant drugs include Sofosbuvir and Velpatasvir for Hepatitis C ($405 million) and Veklury for Covid-19 ($555 million), with oncology revenue at $789 million, an 18% increase year-over-year [3] Company Analysis: Jazz Pharmaceuticals (JAZZ) - Jazz Pharmaceuticals has a market cap of $6.86 billion, with shares down 11% in 2024 and 20% over the past five years [4] - The company acquired GW Pharmaceuticals for $7.2 billion in 2021, known for its CBD-based drug Epidiolex, which saw a 5% revenue growth to $198.7 million in Q1 2024 [4] - Xywav, another key product, generated $315.3 million in Q1 2024, with both drugs accounting for 57% of total revenue [4] - Jazz expects 2024 revenues of $4.1 billion and adjusted earnings per share of $18.75, with shares trading at 5.8 times its EPS for 2024 [5] Company Analysis: Supernus Pharmaceuticals (SUPN) - Supernus Pharmaceuticals has a market cap of $1.60 billion, with shares up nearly 5% in 2024 but down 9% over the past five years [6] - The company specializes in CNS drugs, with Qelbree as its top-selling product, generating $45.1 million in Q1 2024, a 75% increase year-over-year [6] - Sales for Trokendi XR, a migraine treatment, fell 54% to $16.0 million due to loss of exclusivity, while Oxtellar XR also saw a 7% decline in sales [7] - Excluding the two drugs that lost exclusivity, Supernus's sales increased by 12% in Q1 to $100.7 million, with three out of four analysts rating the stock as a Buy [7]