3 Biotech Giants Gaining From U.S. Sales and Policy Shifts

In today’s unpredictable global trade environment, with rising tariffs and tensions, investors are looking for stability. That means turning to assets that can hold up under pressure, especially those that don’t rely too heavily on international markets. When volatility hits, defensive sectors that are less affected by big-picture economic swings tend to come into focus.

One area drawing growing interest is large-cap biotech companies that operate primarily in the U.S. Investors see their domestic focus as a potential shield against the ripple effects of global trade disputes, offering a sense of security in an uncertain world.

Gilead Sciences (NASDAQ: GILD), Amgen (NASDAQ: AMGN), and AbbVie (NYSE: ABBV) are prominent examples of biotech companies attracting investor attention for their potential defensive qualities. These industry leaders emphasize their reliance on the large and comparatively consistent US pharmaceutical market as a key factor in their defensive positioning.

Recent financial figures underscore this US market focus: Gilead Sciences derived approximately 70.0% of its Q1 2025 product revenue from the US, Amgen generated about 74.7% of its Q4 2024 product sales domestically, and AbbVie obtained roughly 74.8% of its Q1 2025 net revenue from the United States.

Why Do US Sales Bolster Biotech Stability?

A significant domestic sales concentration offers a buffer against retaliatory tariffs or economic downturns in specific foreign markets. Moreover, the demand for essential medicines tends to be inelastic, meaning patients will likely need treatments regardless of the overall economic climate.

This distinguishes them from companies dealing in discretionary or industrial goods, where demand is more susceptible to economic cycles and trade conflicts. Each of the companies also exhibits low Beta values, supporting their stability. These low Beta figures suggest that historically, these stocks have experienced less price fluctuation relative to overall market changes, making them attractive as defensive investments.

US Policy Shifts Supporting Domestic Biotech

Recent shifts in U.S. government policy are creating a more supportive environment for domestic biotech companies, going beyond typical market factors. The COVID-19 pandemic highlighted vulnerabilities in the pharmaceutical supply chain, leading to bipartisan efforts to bolster its resilience through onshoring and reshoring manufacturing.

These efforts address national security, drug shortages (especially generics), and future public health preparedness.

The government is employing various strategies beyond tariffs to promote domestic production. These include financial incentives like tax credits and grants, direct government investments utilizing the Defense Production Act, and prioritizing domestically produced medicines through 'Buy American' initiatives in government procurement. 

Although global supply chain complexities may still expose specific components to tariff risks, the overall policy focus on encouraging and incentivizing U.S.-based production strategically benefits companies with substantial domestic operations, such as Gilead, Amgen, and AbbVie.

This alignment can improve their long-term resilience against disruptions in global supply chains, whether caused by trade policy or other causes.

Biotech Case Studies in Resilience

Examining Gilead Sciences, Amgen, and AbbVie demonstrates how their significant operational and revenue focus within the United States aligns with their financial health and strong market performance. Collectively, this reinforces the argument that these companies possess inherent defensive qualities against broader economic uncertainties and international trade headwinds.

Gilead: Stability Meets Opportunity

Gilead Sciences, with a market capitalization of around $132.66 billion (as of April 30, 2025), continues to be anchored by its strong HIV business. This franchise experienced substantial growth in the first quarter of 2025, with Biktarvy increasing by 7% and Descovy by 38%.

This helped compensate for reductions in sales of other products like Veklury. The company's stock has performed well, achieving a year-to-date gain of 15.3%. 

Analysts have a Moderate Buy consensus on the stock, and Gilead offers an attractive dividend yield of about 2.97%. Notably, its very low Beta of roughly 0.32 indicates considerable defensive characteristics in relation to broader market volatility. The company's strong first-quarter operating cash flow ($1.8 billion) and recent debt reduction ($1.8 billion) further emphasize its financial prudence.

A pending PDUFA date for its potential HIV prevention treatment represents a significant upcoming catalyst for the stock. MarketRank gives Gilead a high rating (94th percentile), suggesting robust overall performance compared to its industry counterparts.

Amgen: Dividend Appeal Amidst Strategic Transition

Amgen is a biopharmaceutical company valued at approximately $156.41 billion, and the company reported strong growth in FY24. This growth was fueled by increased sales volume, the integration of the recently acquired Horizon Therapeutics portfolio, and organic growth from key drugs such as Repatha and Tezspire.

The company's stock has shown a positive year-to-date performance of +11.6%, and its forward P/E ratio is around 14.11. In FY24, the company generated substantial free cash flow of $10.4 billion, and its Beta of 0.59 suggests lower volatility compared to the overall market.

With a robust MarketRank in the 82nd percentile and an active pipeline focusing on promising areas like obesity, Amgen's profile indicates a company focused on managing its existing successful products and investing in future growth opportunities.

AbbVie: Resilience Through Diversification and Innovation

AbbVie demonstrates a strong financial position, with a market capitalization of roughly $345.22 billion and a history of effective execution. In the first quarter of 2025, the company achieved a notable 9.8% operational revenue increase. This growth was driven by the rapid expansion of its immunology drugs Skyrizi and Rinvoq, which successfully mitigated the expected decrease in sales from Humira. 

Due to this performance, AbbVie increased its adjusted EPS outlook for 2025. The company's stock has risen by +9.8% since the start of the year. AbbVie's forward P/E ratio is approximately 15.85, offering an attractive dividend with a yield of about 3.36%. Analyst consensus recommends a 'Moderate Buy,' and the company's MarketRank is exceptionally high, placing it in the 92nd percentile. 

The Defensive Appeal of Domestic Biotech

Large-cap biotech companies with a U.S. focus are emerging as a smart defensive play for investors wary of global trade turbulence. Firms like Gilead, Amgen, and AbbVie rely heavily on the large and relatively stable U.S. market, providing a solid foundation for revenue. This domestic orientation is further bolstered by evolving policies that encourage onshore manufacturing, which could strengthen supply chain resilience over the long term.

In addition to that, there is a consistent demand for many of their critical therapies, demand that doesn’t fluctuate much with economic cycles, and these companies begin to look even more appealing. Their strong cash flows, healthy dividends, and low Beta scores (a sign of less volatility) offer additional confidence, backed by solid performance rankings in the market.

While every investment carries some risk, domestic strength, steady demand, policy tailwinds, and financial stability make U.S.-focused biotech leaders a potentially reliable choice during uncertain times.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

The article "3 Biotech Giants Gaining From U.S. Sales and Policy Shifts" first appeared on MarketBeat.