One of the safest sectors on the market is biotech. After all, we can’t stop people from aging — at least not yet. We have millions of people retiring and demanding better care. There’s a good deal of innovation, especially with gene editing. Plus, with a number of heavyweight companies facing patent expirations, many are acquiring cheap biotech stocks to buy to keep pipelines fresh.
And, as I noted on June 22, “Pharmaceutical and biotech companies spent about $85 billion on acquisitions. That’s well above the $35 billion worth of deals done in 2022, and the $49 billion worth of deals in 2021, as noted by analysts at Stifel.” Even more exciting, there are still plenty of cheap biotech stocks to buy, with solid catalysts, including:
Cheap Biotech Stocks to Buy: Phathom Pharmaceuticals (PHAT)
With a focus on gastrointestinal diseases, Phathom Pharmaceuticals (NASDAQ:PHAT) has been moving aggressively higher. In fact, since March, the stock ran from about $6 to $14.65 and could still see higher highs.
Not only did the U.S. FDA accept the company’s New Drug Application (NDA) resubmission for the treatment of erosive gastroesophageal reflux disease (GERD), it set a PDUFA date on November 17. As we near that date, we expect PHAT to push even higher. The company does expect to launch the treatment for erosive GERD by the fourth quarter of the year, pending FDA approval.
We also have to consider the global market could be worth as much as $5.95 billion by 2030. Plus, about 14% of the global population is dealing with GERD at the moment, or about 1.03 billion people. Analysts at Needham have a Buy rating on the stock, with a $23 price target. The firm also noted, “vonoprazan has the potential to be a best-in-class acid blocker and generate ~$675M U.S. peak sales in Erosive Esophagitis.”
Another interesting and cheap biotech stock to consider is Ardelyx (NASDAQ:ARDX). Over the last few weeks, the stock ran from about $3.40 to $4.20 before pulling back with the market. The stock could push higher with an October 17 FDA catalyst.
That’s the day the agency is expected to make its decision on “XPHOZAH for the control of serum phosphorus in adult patients with chronic kidney disease on dialysis who have had an inadequate response or intolerance to a phosphate binder therapy,” as noted by RTTNews.
Even better, analysts at Ladenburg just raised their price target on ARDX to $8.50 from $7.50, with a Buy rating.
According to Mike Raab, president and chief executive officer (CEO), “Pending FDA approval, [the company is] looking forward to bringing this novel therapy to patients in the fourth quarter of this year, delivering on a promise to patients and the vision of Ardelyx for the second time in two years.”
The last time I mentioned BioLineRx (NASDAQ:BLRX), it traded at $1.20 on May 4. After hitting a high of $1.82, it now trades at $1.57 and could test higher highs. As I noted on May 4, the company “just announced the FDA acceptance of its APHEXDA (motixafortide) new drug application (NDA). This is for stem cell mobilization for autologous transplantation in multiple myeloma patients. There’s a PDUFA target date of Sept. 9.”
As we near that date, I believe the stock could push aggressively higher.
BioLineRx also announced the initiation of a Phase 2 clinical trial in first-line metastatic pancreatic cancer, as I noted on July 18. “There’s hope for success, with metastatic cancer being a fatal disease for which current treatments offer only limited benefits.”
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.