Bond markets are flashing warnings, with 10 year US Treasury yields recently crossing 5.3% for the first time since 2002. When borrowing costs feel this heavy, investors often look for areas where a single medical breakthrough can matter more than broad market swings. That is where higher quality biotech stocks come in. This article highlights three candidates from that group that could merit a closer look.
The three biotech stocks in this article are just a starting sample, and the full screen surfaced 85 more companies with equally compelling narratives that are not covered here. To go deeper, head straight into the Biotech Stocks screener to identify, analyze, and focus on the highest conviction biotech ideas that fit your risk tolerance.
Eli Lilly (LLY)
Eli Lilly is a global pharmaceutical heavyweight whose biotech credentials come through in its biologic drugs for diabetes, obesity, cancer, and immune disorders, backed by active work in genetic medicines that keeps it firmly tied to the Biotech Stocks theme.
Eli Lilly generates essentially all of its US$79.7b in revenue from discovering, developing, manufacturing, and selling prescription medicines, and carries a market value of roughly US$1.1t.
For biotech investors, Eli Lilly offers something rare in this high risk corner of the market: a business already scaled on obesity and diabetes treatments, yet still heavily investing in next generation biologics and genetic medicine programs that could reshape future revenue mix.
"Mounjaro (for type 2 diabetes) and Zepbound (obesity) each grew rapidly in 2024, with analysts projecting Mounjaro sales of $18.4B in 2025 and $22.8B in 2026, and Zepbound jumping from $4.9B (2024) to $12.5B in 2025 (and $18.1B in 2026)."
What really matters now is how one quiet pressure on this GLP-1 engine shapes future pricing power and long term margin strength.
That pricing pressure question sits at the center of Eli Lilly’s next chapter, and the full narrative for Eli Lilly pulls apart how GLP 1 momentum could still accelerate.
Trulieve Cannabis (TRLV)
Trulieve Cannabis leans into the Biotech Stocks theme through its vertically integrated cultivation, processing, and manufacturing of plant based cannabis products. Its multi state dispensary network keeps that product development tied directly to real world medical and pharmaceutical demand.
Trulieve Cannabis generates US$1.1b in Pharmaceuticals revenue, entirely from the United States, and has a market value of about US$1.9b.
Where Eli Lilly leans on complex biologics, Trulieve Cannabis offers a plant based biotech angle, using its cannabis cultivation and processing platform to funnel branded products into medical channels across several states.
"Federal reclassification of medical marijuana to Schedule III, along with the ability to register with the DEA and deduct ordinary expenses, is expected to reduce the impact of 280E and could free up more cash to support earnings and operating margins over time."
What really moves the story from here is how one unresolved shift in medical program demand shapes the value of that vertically integrated pipeline.
That unresolved demand shift is the real swing factor, and the full narrative for Trulieve Cannabis shows how federal reclassification, tax relief, and state level trends could accelerate Trulieve Cannabis beyond first impressions.
Immunocore Holdings (IMCR)
Immunocore Holdings centers its Biotech Stocks appeal on KIMMTRAK and a wider T cell engager platform for cancer, while also testing its approach in infectious and autoimmune disease. The business booked about US$431 million from immunotherapies and carries a market value near US$1.5b.
For this screener, Immunocore Holdings brings a very different flavor of biotech risk and reward, with a single approved melanoma therapy already on the market and a broad T cell therapy pipeline that could extend its reach if things go right.
"Although Immunocore Holdings reports KIMMTRAK revenue growth and high penetration across more than 30 countries, management’s expectation that underlying quarterly growth normalizes to around 3% in a fifth year on the market points to a shift toward a mature revenue stream that may not support the earnings expansion implied by ongoing late stage trial spend."
What really matters is how one shift in the balance between new trial costs and future pipeline payoffs shapes long term earnings power.
That balance is exactly what the full narrative for Immunocore Holdings unpacks, revealing how Immunocore Holdings could convert today’s heavy trial spend into accelerating value if the science delivers.
Seeking Fresh Alternatives Before They Fly
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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