2 Unstoppable Stocks That Will Keep Beating the Market in 2022 – The Motley Fool | Region & Cash

The stock market was unpredictable and volatile throughout the year. All three major US market indices are in the red, and with economic woes still on everyone’s lips, no one knows when things will get better.

Amid these issues, some stocks have performed surprisingly well and should continue that trend for the rest of the year. This is the case for AstraZeneca (AZN -0.17%) and incyte (INCY -2.37%). Let’s see why these two biotechs can continue their advance.

AZN data from YCharts.

1. AstraZeneca

Over the past year, UK-based AstraZeneca has become an even more compelling investment thanks to new approvals and a major acquisition. In the former category, AstraZeneca’s treatment for severe asthma, Tezspire, received a “thumbs up” from the US Food and Drug Administration (FDA) in December. AstraZeneca has developed this product in collaboration with amgen. The two drugmakers will share profits and costs associated with Tezspire equally, following a royalty payment from AstraZeneca to Amgen.

The drug has blockbuster potential as it addresses the needs of many asthma patients for whom current treatment options are inadequate. On the acquisition front, last summer AstraZeneca completed the acquisition of Alexion Pharmaceuticals, a biotech company focused on rare diseases. The cash and stock acquisition was valued at $39 billion.

With this transaction, AstraZeneca inherited Alexion’s portfolio of orphan medicines, including Soliris and Ultomiris, approved to treat paroxysmal nocturnal hemoglobinuria and hemolytic-uremic syndrome (two rare blood-related diseases). The acquisition of AstraZeneca also strengthened the pipeline.

The Company currently has 183 programs in its pipeline, including 16 brand-new products in late-stage studies. Label extensions and approvals for novel therapies shouldn’t be a problem for this biotech giant. AstraZeneca’s portfolio also includes several cancer drugs that continue to perform well. In the first quarter, the drugmaker’s total oncology sales rose 21% year over year to $3.6 billion, thanks to products like Tagrisso, Imfinzi, and Lynparza.

Other important drugs for the biotech include diabetes drug Farxiga and Fasenra, used to treat severe asthma. AstraZeneca’s lineup is likely to continue to push the company’s top line in the right direction, and its rich pipeline means it can navigate future patent cliffs. That partly explains why AstraZeneca has outperformed the market this year and why it can continue to dominate.


Incyte has accumulated important new approvals and label extensions over the past several years. In 2020, the company received the green light in the US for two brand-new cancer drugs, Pemazyre and Monjuvi. In September 2021, Incyte received FDA approval for Opzelura for the treatment of atopic dermatitis.

Opzelura is the topical formulation of Incyte’s crown jewel, cancer drug Jakafi. Opzelura recently received a new indication for the treatment of repigmentation in patients with vitiligo, the first and only FDA-approved drug in this indication. Last but not least, Incyte’s Olumiant received regulatory approval in April as the first and only systemic treatment for alopecia areata. Incyte announces the rights to Olumiant Eli Lilli. These regulatory wins will help Incyte grow its revenue and profits for years to come.

Importantly, Incyte is preparing to lose patent protection for Jakafi in 2027. Jakafi still generates the bulk of the company’s revenue. In the first quarter, Incyte’s total revenue was $733.2 million, up 21% year over year, and Incyte’s product sales and Jakafi royalty revenue accounted for about 84.5% of that.

With a slew of brand new drugs, Incyte should stop over-relying on Jakafi if its sales tumble due to patent cliffs. Incyte has a little over two dozen programs running in its pipeline. Investors can expect even more approvals and label extensions in the coming years. While the company’s stock performance suffered prior to this year in part due to its heavy reliance on one product, management is showing it is thinking ahead and planning a profitable life after Jakafi.

This is good news for Incyte shareholders and those considering taking a position in this attractive biotech stock.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly and Company and Incyte. The Motley Fool recommends Amgen. The Motley Fool has a disclosure policy.

Leave a Comment