Sasha Jovanovic
4 min read
Central banks are signalling that higher interest rates are likely needed to tame stubborn inflation, which keeps borrowing costs elevated and funding more expensive for many risky assets. Yet that pressure has not removed the appeal of high potential growth stories; it has simply raised the bar on quality. This article looks at three biotech stocks that pair this high risk, high reward profile with balance sheets that appear more grounded than many peers.
The stocks covered below are just a small sample of the idea. The full screen surfaced 81 more biotech companies with equally compelling stories that are not discussed here. To go beyond this shortlist, head straight into the Biotech Stocks screener to identify, analyze, and focus on the highest conviction biotech opportunities.
Amgen (AMGN)
Overview: Amgen is a large biotech group that discovers, develops, manufactures and sells biologic medicines for serious diseases worldwide.
Operations: Amgen generates about US$38.9b from human therapeutics, with roughly US$27.7b from the US and US$10.9b from the rest of the world.
Market Cap: US$249.0b
For the Biotech Stocks theme, Amgen matters because it gives you exposure to a broad portfolio of commercial biologic drugs, backed by a long running research engine and a balance sheet that aims to support both new trials and ongoing shareholder payouts.
“Dividend covered about 2x by free cash flow; debt from the Horizon deal is being paid down.”
What happens to that careful balance if one unseen pressure on future cash generation or capital needs shifts more than expected?
If that unknown proves material, you will want the full context. Read the full narrative for Amgen to see how dividend coverage, pipeline and debt reduction could be pulling in different directions.
Eli Lilly (LLY)
Overview: Eli Lilly develops and sells biotech-driven prescription medicines worldwide, centred on cardiometabolic biologics, peptide therapies, oncology, immunology and neuroscience treatments.
Operations: Eli Lilly generated about US$86.5b from pharmaceuticals, with roughly US$54.5b from the US and US$32.4b from international markets.
Market Cap: US$1,215.6b
Eli Lilly matters for this Biotech Stocks theme because its GLP-1 and obesity biologics give you direct exposure to blockbuster-scale biotech therapies rather than smaller, binary trial bets.
“Mounjaro (for type 2 diabetes) and Zepbound (obesity) each grew rapidly in 2024, with analysts projecting tirzepatide sales to increase through 2026, and describing Lilly’s tirzepatide franchise as a key contributor to growth.”
