Two Biotech Stocks to Buy in April

The biotechnology industry is attractive for several reasons. Many leading biotech companies develop innovative, life-saving treatments, a business that will only go out of business when we find a cure-all for every disease. In addition, biotech companies tend to have better-than-average financial performance during economic downturns because the products they sell are recognized as necessities.

Not every biotech company is worth investing in, though. Let's take a look at two companies that are worth buying this month or most months:Amgen (name)firms(NASDAQ resonance code: AMGN)respond in singingSarepta Therapeuticsfirms(NASDAQ: SRPT)The

1. Anjin

Over the past few years, Amgen's performance has been less than stellar. At best, revenue growth has been slow, progress on Gwen's noodle has not been satisfactory, and the new drugs responsible for replacing the old ones have not lived up to expectations, at least not yet. This includes Amjevita, the first Humira-based biopharmaceutical to be marketed in the United States.

Although AbbVie's Humira hit a peak of $21.2 billion in annual sales, the loss of patent exclusivity meant that Amgen's products could not generate enough sales to have a serious impact on the company's aggregate sales. It would be a mistake to abandon Amgen in spite of these problems. It is one of the largest biotech companies with an extensive product line that should eventually lead to a major breakthrough.

Like many leading drugmakers, Amgen is entering the weight-loss market. The results of a Phase I clinical trial of AMG133, one of the company's leading candidates in this area, were encouraging. The trial showed significant weight loss and, importantly, patients were able to maintain their weight for up to 150 days after treatment.

This is an important factor, as post-treatment durability is an issue that Amgen hopes to address with many of the currently approved anti-obesity therapies, and the biotech will also rely on its recent acquisition of Horizon Therapeutics, a company with about $28 billion. The biotech will also rely on Horizon Therapeutics, which it recently acquired for about $28 billion, and which brings with it a range of approved drugs and candidates, none more so than Tepezza for thyroid eye disease (TED).

According to Amgen, while Tepezza is the first and only TED treatment on the market, it has not yet reached its full potential, with about 100,000 patients in the U.S. who could benefit from the drug. It should be an important growth driver for Amgen over the years. Meanwhile, the biotech company has more than four dozen projects in its pipeline.

In addition, Amgen is an excellent dividend-paying stock. It has a competitive yield of 3.26%, and over the past five years, it has increased its dividend payout ratio by 55%. This biotech company will appeal to lower-risk investors looking for long-term gains.

2. Sarepta Therapeutics

Sarepta Therapeutics focuses on developing treatments for rare diseases. Although it is not one of the most recognized companies in the biotechnology industry, the company has proven its ability to innovate. It has developed several successful treatments for Duchenne muscular dystrophy (DMD), a rare progressive genetic disease that causes muscle degeneration, and Sarepta's most important product to date is Elevidys, the first FDA-approved gene therapy for DMD.

The biotech is awaiting a potential labeling extension for Elevidys that would remove age and activity status restrictions on the drug. Although Elevidys won't be approved until mid-2023, it has already made a significant contribution to Sarepta Therapeutics' financial success. Last year, the biotech's revenue grew 33.3% to $1.2 billion. Elevidys contributed $200 million to the company's revenue.

If the FDA approves the company's expanded labeling, which could happen in late June, demand will grow, and sales of the drug will grow even faster.Sarepta is still developing treatments for DMD; many of the company's 40-plus programs target the disease. But the biotech is also looking to diversify its product line. In January, Sarepta Therapeutics kicked off a Phase 3 clinical trial of a potential treatment for limb girdle muscular dystrophy, a rare disease that affects patients' muscles.

Sarepta may not be as well known as Amgen, but the rare disease specialist's strong innovation capabilities should allow it to continue developing breakthrough medicines while delivering solid financial results and stock market performance.

Should you invest $1,000 in Amgen now?

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Prosper Junior Bakiny does not hold any of the aforementioned shares.The Motley Fool recommends Amgen.The Motley Fool has a disclosure policy.

2 Biotech Stocks to Buy in April was originally published by The Motley Fool.