6 Best Biotech Stocks to Buy for 2024
Biotechnology stocks are among the most high-risk, high-reward stocks in the market. Many biotech companies are working to develop one or even a handful of world-changing drugs to address billion-dollar markets. The fates of these often volatile stocks are tied closely to study data and approval decisions from the U.S. Food and Drug Administration or other drug regulators.
The biotech industry struggled as a whole in 2023, but analysts say the innovation that has always supported it is alive and well. Here are six of the top biotech stocks to buy that Argus analysts love:
Vertex Pharmaceuticals Inc. (VRTX)
Vertex Pharmaceuticals is a biopharmaceutical company that specializes in developing therapies to treat cystic fibrosis (CF). Vertex also owns the rights to 60% of the profits from sales of Crispr Therapeutics AG’s (CRSP) gene-editing therapy exa-cel, which was approved by the FDA for treating sickle cell disease in December 2023 and for treating transfusion-dependent beta thalassemia (TDT) just six weeks later. Analyst Jasper Hellweg says Vertex’s CF drug Trikafta/Kaftrio is putting up impressive sales numbers, and regulators recently granted the drug an expanded label. Argus has a “buy” rating and $465 price target for VRTX stock, which closed at $414.47 on March 11.
Regeneron Pharmaceuticals Inc. (REGN)
Regeneron Pharmaceuticals is a biotech company focused on developing therapies to treat metabolic disorders, inflammatory diseases, cancer and respiratory conditions. Regeneron shares took a big hit in June 2023 after the FDA rejected the high-dose formulation of wet age-related macular degeneration drug Eylea. However, Hellweg says the company has several bullish catalysts ahead in 2024, including potential FDA and European Commission approvals for linvoseltamab in treating relapsed/refractory multiple myeloma and for odronextamab in treating relapsed/refractory follicular lymphoma and relapsed/refractory diffuse large B-cell lymphoma. Argus has a “buy” rating and $1,060 price target for REGN stock, which closed at $964.44 on March 11.
Iqvia Holdings Inc. (IQV)
Iqvia is a clinical research company that provides health care data solutions. Analyst David Toung says Iqvia’s market conditions seem to be improving given the company’s strong new order flow, and he projects an acceleration of revenue growth and margin expansion in the second half of 2024. Toung says Iqvia has impressive new product offerings and a sizable backlog of orders. In addition, he says Iqvia has a track record of innovation, several recent contract wins and a long-cycle business that helps insulate the stock from market shocks. Argus has a “buy” rating and $300 price target for IQV stock, which closed at $258.58 on March 11.
Moderna Inc. (MRNA)
Moderna is a leading biotechnology company that specializes in mRNA therapeutics. Investors likely know of Moderna because of its COVID-19 vaccines, but Hellweg says the company is successfully diversifying its business away from COVID-19. The company recently reported positive late-stage trial data on its mRNA-1345 respiratory syncytial virus (RSV) vaccine candidate, which Hellweg hopes will be launched globally in 2024. Moderna is also in late-stage trials for a combination COVID-19/influenza vaccine candidate that could potentially gain regulatory approval before the end of 2025. Argus has a “buy” rating and $115 price target for MRNA stock, which closed at $111.98 on March 11.
Bio-Techne Corp. (TECH)
Bio-Techne develops, manufactures and sells biotechnology reagents and instruments for the research and clinical diagnostic markets. Toung says a soft biotech funding market and weaker-than-expected macroeconomic conditions in China are headwinds for Bio-Techne in 2024, but certain products are performing well even in the difficult environment. Toung has been particularly impressed by sales of the company’s ExoDx prostate test and GMP proteins. He says China is making health care improvement a top long-term priority, which bodes well for Bio-Techne’s demand outlook once the Chinese economy rebounds. Argus has a “buy” rating and $90 price target for TECH stock, which closed at $75.13 on March 11.
United Therapeutics Corp. (UTHR)
United Therapeutics is a commercial biopharmaceutical company focused on treating pulmonary arterial hypertension (PAH). Hellweg says the company’s Tyvasco and Tyvasco DPI products for treating PAH are performing very well and anticipates additional indications for Tyvasco down the line. United is testing Tyvasco in treating idiopathic pulmonary fibrosis (IPF) and progressive pulmonary fibrosis (PPF). Hellweg says United has an impressive organ manufacturing and transplant program, including its xenoheart and xenokidney products. He says United has a healthy balance sheet and an opportunity for significant valuation upside in 2024. Argus has a “buy” rating and $280 price target for UTHR stock, which closed at $249.51 on March 11.
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