Could It be Wise to Invest in Biotechnology?

David Johnston CFO
3 min readSep 16, 2022

One example of a biotechnology business rapidly expanding its presence around the globe is Amgen. Another firm with a strong presence worldwide that manufactures drugs to treat a wide range of illnesses is AstraZeneca. Finally, GILD is another biotechnology business that develops treatments for various illnesses. Recently, the firm’s shares had a one-day gain of more than 15%.

The largest biotechnology business in the world, Amgen, is now working on three to four potential blockbuster treatments that are still in the early stages of research. Even if the firm has had poor market performance over the past several years, investing in it now is still an excellent idea. The company’s stock has a beautiful head and shoulders profile, and its pipeline of cancer drugs seems promising. The company is also in a good position for future development. However, for it to be an attractive stock purchase, it needs to break out of the range of $180.

AstraZeneca has been more visible on a worldwide scale as a result of the launch of the HIV vaccine known as Covid. The vaccine is administered intramuscularly in two separate doses and is based on a vector derived from an adenovirus that produces a spike protein. The World Health Organization suggests waiting anywhere from eight to twelve weeks between dosages.

GILD Biotech is a corporation specializing in biotechnology and manufactures medications for various illnesses. Its primary focus is on the research and development of RNA-based medicines. Its portfolio contains three medications available for purchase, including Spinraza and WAYLIVRA. The company’s pharmaceutical products address various illnesses, including cardiovascular disease, amyotrophic lateral sclerosis (ALS), and Huntington’s disease.

When the stochastic oscillator starts moving in an upward direction, it may indicate that a stock’s price is about to undergo a substantial shift. For instance, for the past 53 days, this indicator has shown a positive value for GILD on 52 of those days. When this indicator begins to move in an upward trend, it indicates that the price of a stock will most likely continue to rise. When a stock’s price is higher than its 50-day moving average, the MACD for that stock is likely to be in positive territory. This should warn prospective investors that the time has come to purchase the corresponding stock.

A biotechnology stock that has outperformed the majority of its competitors over the past two years is GILD. In addition, the corporation’s most recent financial report exceeded industry experts’ expectations. The firm’s profits per share (EPS) climbed by 23% compared to the previous year, while the company’s total revenue increased by 3% compared to the previous quarter. The firm’s stock price has increased by 250% in only two years thanks to its remarkable performance, which has significantly outpaced both the Biotech sector and the S&P 500.

GILD is a biotechnology ETP that has a great deal of untapped potential. Because of its HIV and HCV brands, it is anticipated to have a lifetime revenue potential of one hundred billion dollars. In addition, GILD is dedicated to providing its shareholders with cash returns in the form of dividends and share repurchases. Even though the company’s clinical pipeline is showing signs of promise, some questions still need to be answered. One of these questions is whether or not the company can deliver on its dividend, and another is how long it will last despite the impending loss of patent exclusivity until 2021.

At the price that the market closed at today, an upside price gain on a stake in GILD would be more significant than 10%. The price decrease would result in a gain of less than 10%. The stock price has moved upwards and downwards by roughly the exact amounts during the last 111 trading days.

Consider investing in biotech exchange-traded funds if you are searching for a strategy to capitalize on the growth of emerging markets. Over the past ten years, investors have seen solid returns from these companies, outperforming every other industry by more than 200 percentage points. This is nearly twice as much as the total return of the S&P 500 index. In addition, investing in innovative therapies for diseases through purchasing biotech companies is a fantastic opportunity.



David Johnston CFO

Former CFO David Johnston is the proud founder of the dbj Consulting LLC.