Biotech stocks are one of the hottest investing opportunities in the stock market
lately.
The optimism surrounding the industry is evident in the SPDR S&P
Biotech ETF’s (NYSEARCA:XBI) 25% bump in value over the past six months, outpacing broader market gains. Moreover, with the impending interest rates cuts, it might be an ideal time to scoop the top biotech players on the dip.
Interest in the biotech sphere will continue to grow on the back of several factors, including revolutionary new treatments, an aging population and a heightened
demand for advanced healthcare. Also, with the greater risk appetite among investors, biotech stocks could be in for a major breakthrough. With that said, let’s look at three of the leading biotech stocks offering stellar long-term upside ahead.
Bristol-Myers Squibb (BMY)
Bristol-Myers Squibb (NYSE:BMY) is a seasoned player in the biotech sphere that finds itself in unfamiliar territory. Like Pfizer (NYSE:PFE), BMY has fallen out of favor with investors over the past couple of years due to several of its old drugs going off-patent. Consequently, BMY stock was down 27% last year and is ticking in the red so far this year.
However, Bristol boasts an excellent pipeline of drugs, which could take its business in a completely new direction. Moreover, some new ones, including Reblozyl, which caters to anemic adults with beta-thalassemia, have helped drive solid top-line growth of late. Furthermore, Bristol’s acquisition of Karuna Therapeutics adds a new dynamic to its portfolio by incorporating psychiatric and neurological treatments.
The market, however, hasn’t taken too kindly to the recent failed Phase 3 clinical trials for its Crohn’s drug Zeposia. Nevertheless, with several other promising candidates in its pipeline, a healthy 4.60% dividend yield and an attractive valuation, BMY remains an interesting biotech pick.
Viking Therapeutics (VKTX)
Viking Therapeutics (NASDAQ:VKTX) is a leading biotech upstart that’s experienced rapid price movement lately. Year-to-date (YTD), VKTX stock is up an eye-popping 310% on the back of the company’s incredible breakthroughs in the past year.
Progress has been incredible with its anti-obesity drug, which recently showed promising outcomes in its Phase 2 trial, meeting all primary and secondary endpoints. Moreover, patients receiving its novel treatment have shown considerable weight loss, with reductions of up to 14.7% from their baseline weight after 13 weeks. Also, Viking is preparing for Phase 2 trials for its budding daily weight loss pill.
I’m not surprised with all the hullabaloo surrounding VKTX, considering how the anti-obesity drug market could grow to a whopping $100 billion by 2030. If the FDA green-lights its drugs within the next few years, expect it to unleash a wealth cascade for its investors.
Moderna (MRNA)
Moderna (NASDAQ:MRNA) sparkled during the pandemic years with its powerful COVID-19 vaccine, which became ubiquitous then. However, with the rapid decline of its Covid vaccines, Moderna is now searching for a new cash cow.
The best thing for Moderna is its well-funded mRNA treatment pipeline. To put things in perspective, it boasts a cash and investments balance of $8.6 billion, an astonishing 87% increase from 2020. Hence, its stellar internal reserves provide it the impetus to pursue its growth initiatives organically.
Its pipeline has multiple Phase 3 products, including respiratory and flu vaccines. Moreover, it received a sizeable $750 million investment from Blackstone (NYSE:BX) in advancing its flu program. Additionally, it is also the sole contender for a Phase 3 cytomegalovirus (CMV) vaccine, fully enrolling in its trial. Hence, if Moderna can commercialize even a small portion of its pipeline, it’s set to rake in millions in incremental sales.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines