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Could this be the year biotech stocks bounce back? The industry has been in a slump over the past couple of years, but it started 2024 with a bang. The SPDR S&P Biotech ETF, which tracks an industry index, is up by nearly 13% year to date.

Still, it's too early to say whether the industry will keep up this momentum all year long; we are only in March. But no matter what happens to this sector, let's consider two biotech stocks worth buying and holding on to for a while: Regeneron Pharmaceuticals (NASDAQ: REGN) and Exelixis (NASDAQ: EXEL).

1. Regeneron

Though many biotech stocks have struggled over the past few years, Regeneron has delivered excellent returns. The company should continue doing so.

Here is one reason: Regeneron recently announced that the U.S. Food and Drug Administration (FDA) has accepted its application for Dupixent as a treatment for COPD. Dupixent, an eczema treatment co-marketed with Sanofi, has been Regeneron's most important growth driver over the past few years.

However, earning approval in treating COPD could add up to $3.5 billion in sales for the medicine, according to some estimates. For context, Dupixent's sales increased by 33% to $11.59 billion in 2023. The medicine could exceed peak annual revenue of $20 billion by the end of the decade. So it should continue driving Regeneron's top line higher for a while.

We can say the same about the biotech's other main growth driver, Eylea, a therapy for wet age-related macular degeneration co-marketed with Bayer. After earning approval for a high-dose formulation of the medicine last year, Regeneron is better equipped to handle the competition from Roche's Vabysmo, first approved in early 2022.

Things are looking up for Regeneron's two most important products, but there is more to cheer about with this company. The biotech is close to launching brand-new products. It is currently awaiting approval for cancer treatment linvoseltamab from the FDA. Regeneron's deep pipeline and ability to replenish its lineup represent more reasons its financial results will improve over time while its shares continue to beat the market.

That's what makes Regeneron an excellent biotech stock to buy this month.

2. Exelixis

Exelixis is a mid-cap biotech stock that is notable for one key reason. The company specializes in developing cancer medicines -- that's one of the largest, fastest-growing areas in the industry. Exelixis has found success, most notably thanks to its current crown jewel, Cabometyx, the leading cancer therapy of its type in treating some forms of renal cell carcinoma (RCC, the most common form of kidney cancer) and hepatocellular carcinoma (HCC, the most common liver cancer).

Considering how competitive the oncology market is, Exelixis carving out a successful and lucrative niche for itself is impressive. The biotech is looking to replicate the success it has had with Cabometyx. Its goal is to target areas with unmet needs, where there is a dire need for new therapy approaches.

That's what it is doing with its most advanced candidate, zanzalintinib, which is undergoing phase 3 studies in metastatic colorectal cancer and advanced non-clear cell RCC. Zanzalintinib still has a way to go before earning approval. In both cases, five-year survival rates are low, which highlights the need for novel treatment options.

In the meantime, Exelixis continues to deliver solid financial results thanks to Cabometyx. Last year, the company's total revenue of $1.8 billion increased by 13.6% year over year. Exelixis' earnings per share came in at $0.65, about 16% higher than the year-ago period.

Exelixis recently announced positive results from a late-stage study for Cabometyx -- in combination with Roche's cancer medicine Tecentriq -- in treating metastatic castration-resistant prostate cancer. This diagnosis often leaves patients with at most two years to live. An approval here could meaningfully move the needle for Exelixis.

The company's Cabometyx will continue to grind out new indications, while its multiple pipeline programs -- both in the early and late stages -- will make progress in the next few years. Exelixis' innovative qualities in the oncology space and successful track record make it a top biotech company to invest in now.

Should you invest $1,000 in Regeneron Pharmaceuticals right now?

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Prosper Junior Bakiny has positions in Exelixis. The Motley Fool has positions in and recommends Exelixis and SPDR Series Trust - SPDR S&P Biotech ETF. The Motley Fool recommends Roche Ag. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.