3 Red-Hot Biotech Rockets Blasting Off in 2024


  • The economy is looking very strong and the biotech industry is looking even better, making growth prospects very high.
  • Viking Therapeutics (VKTX): High YTD growth and an upcoming new drug that combats obesity could catapult VKTX even further.
  • Geron (GERN): Rising profit expectations and advancements in drug approval make GERN exceptionally attractive.
  • Neurocrine Biosciences (NBIX): NBIX has been developing innovative treatments for endocrine and neurological diseases, with strong financials and promising market potential, making it a recommended “buy.”
biotech stocks - 3 Red-Hot Biotech Rockets Blasting Off in 2024

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The economy is currently on a stable trajectory and is poised for sustained growth; the indicators show a positive outlook overall. However, the biotech industry presents even more compelling potential, demonstrating a compounding annual growth rate (CAGR) of 13.96% from 2024 to 2030. This substantial growth is largely attributed to robust government support and the expanding field of personalized medicine, which creates ample opportunities for innovation and advancement. These pivotal factors exert a significant influence, firmly establishing biotech as a burgeoning market sector. With the industry set for expansion, investing in the top three biotech stocks promises to be highly lucrative and strategic.

The biotech stocks discussed in this article are breaking through in their respective health solutions. By developing groundbreaking drugs that will enhance growth for years, many of these budding firms could become staples of the biotech industry. Thus, if you want to invest in biotech, these three are your best options in terms of potential ROI.

Viking Therapeutics (VKTX)

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Viking Therapeutics (NASDAQ:VKTX) is a pharmaceutical company that develops drugs and treatments for metabolic disorders. Currently, trading at $66.55, VKTX has achieved a YTD growth of 257.17%, and according to CNN’s one-year price forecast, the future low price target is $90.

The company announced a new drug, VK2735, that can potentially solve obesity. Recent test results of this drug highlighted positive results and demonstrated body weight reduction, encouraging the next phase of testing to begin. As such, the company will initiate a phase 2 trial of this drug sometime this year. Its innovation with the drug VK2735 is a new driving force in the company and demonstrates its growth potential within the upcoming years. 

For investors seeking a potentially surging stock, VKTX is rated a strong buy due to its growing industry and upcoming obesity amender drug, VK2735.

Geron Co. (GERN)

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Geron (NASDAQ:GERN) is a leading biotechnology company specializing in developing and commercializing therapeutic products for cancer that inhibit telomerase (an enzyme associated with cancer proliferation). GERN produces Imetelstat, an independently produced FDA-approval pending drug that inhibits telomerase. 

While the company isn’t profitable yet, with a burn rate of $184.13 million as of FY2023, it is expected to break even as soon as 2026. 6 Yahoo Finance! analysts have set an average growth target of 38.04%, highlighting investor confidence, even though EBITDA is -$193.5 million. After FDA approval, GERN’s profits could begin to rise, and the stock price will likely follow. 

GERN also offers stem cell-based products, which it licenses as a secondary revenue stream. This collection of assets, in turn, ensures a steady revenue stream. Once it reduces expenses, it is likely the company will break even and eventually become profitable.

Moreover, investor confidence in GERN is relatively high, with firms like Goldman Sachs listing it as a buy stock. This, combined with increased prospective revenue and diverse assets under the company name, makes GERN a buy.

Neurocrine Biosciences (NBIX)

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Neurocrine Biosciences (NASDAQ:NBIX) is a pharmaceutical and biotech organization committed to developing treatments for various endocrine and neurological diseases. It has developed cutting-edge FDA-approved treatments for conditions such as tardive dyskinesia, Parkinson’s disease, and women’s health. Currently, Neurocrine trades at $133.23, reflecting a 29% YOY increase.

Neurocrine’s financials suggest dominance in the market, with YOY stock value increasing by an impressive 26.42% as of April 2024. Additionally, an EPS of $5.96 bolsters its profitability. NBIX continues to portray vital metrics, with a leveraged free cash flow of 21.47%. Specifically, they have a market capitalization of $13.38 billion and a PE  ratio of 22.33x. Also, positive valuation metrics reflect that investors have incredibly high expectations for Neurocrine, and Neurocrine has a solid and optimistic market position. Overall, Neurocrine’s financial metrics are well above its sector average, conveying a competitive advantage, and will continue to thrive.

Its various catalysts drive Neurocrine, which has recently had a breakthrough in treating neurological conditions. Neurocrine’s shares are trading directly in line with its 50-day moving average. This means the stick is currently in line with its short-term trend, and investors have instilled confidence in the stock, optimistic for an upward trend. Due to these reasons, I strongly recommend a “buy” rating.

On the date of publication, Michael Que 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.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.

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