Undervalued biotech stocks will always be relevant for the savvy investor.
The biotech world is evolving rapidly, with pharmaceutical giants tirelessly building on their pipelines and technologies. We’re seeing gene editing become more refined, with a growing appetite for advanced healthcare. On top of that, AI’s new role in drug discovery could take things up a notch or two for biotech players.
However, the industry can be incredibly volatile: The stakes of clinical trials and FDA approvals are a make-or-break situation for a company, for example. Nonetheless, the landscape offers a thrilling path to potentially rewarding investments.
Snapping the right biotech stocks to buy at the right time can result in explosive gains. In fact, the stocks covered in the article offer at least an 80% upside based on analyst consensus estimates. Thus, now is the prime time to jump on these stocks before a sustained rally ahead.
Viking Therapeutics (VKTX)
Viking Therapeutics (NASDAQ:VKTX) is arguably the most explosive entrant in the burgeoning weight loss drug market. VKTX stock has surged 168% year-to-date (YTD) due to exceptional results from its weight loss candidate, VK2735. Moreover, according to Goldman Sachs, the weight loss market could be worth roughly $130 billion by 2030, pointing to a massive growth runway ahead for Viking.
The data so far shows that Viking could be on to something huge. The oral form of VK2735 showed a 3.3% reduction in body weight after just 28 days in Phase 1 trials. Additionally, we’re hearing rumors of a pharma giant potentially acquiring the company, which could be a major catalyst for VKTX stock ahead. Whether it remains Viking independent or is snapped up at a premium price, the future looks incredibly encouraging for its shareholders. Also, 10 Wall Street analysts rate the stock as a ‘strong buy’ while projecting an 89% upside potential.
Altimmune (ALT)
Altimmune (NASDAQ:ALT) is another promising player in the weight loss sphere that could potentially reward investors handsomely over the next 12 months.
Among a handful of emerging stars in the weight loss niche, Altimmune stands out with its innovative treatment, pemvidutide. According to data from its latest trials, pemvidutide helped preserve lean mass while cutting weight. The 48-week trial showed that roughly 74.5% of the weight loss was linked to fat tissue, while the rest was connected to lean mass. This gives Altimmune a leg up over its competition, particularly GLP-1 agonists, which are associated with higher rates of muscle loss.
Moreover, the drug has shown promise beyond weight loss, reducing liver fat, and treating hepatitis B. Additionally, the FDA’s fast-track designation for the drug in treating a variant of fatty liver disease underscores its potential. Consequently, five Wall Street analysts rate it a ‘strong buy’ and project a robust 171% upside potential.
Zura Bio (ZURA)
Zura Bio (NASDAQ:ZURA) is another clinical-stage biotech that continues to make major strides in the treatment of immune and inflammatory disorders. Unlike other stocks discussed in the article, ZURA stock has moved mostly sideways in the past year. However, the upside potential in the stock is tough to overlook, with three promising assets ready for Phase 2 trials.
Among these, tibulizumab is the firm’s top drug candidate, entering Phase II trials for treating hidradenitis suppurativa (HS), a chronic inflammatory skin condition. Moreover, Phase II clinical trials are scheduled for later this year for its candidate covering systemic scleroderma (SSc), a chronic autoimmune disease.
Hence, Zura could potentially be a major opportunity in the biotech space through its focused approach to catering to unmet medical needs in immune and inflammatory disorders. Additionally, Wall-Street consensus estimates point to a whopping 478% upside from current levels.
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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
