The pharmaceutical industry is one of the most dynamic and innovative sectors in the world. It is constantly developing new drugs and treatments to address various health challenges and improve the quality of life of millions of people. However, not every pharma company is successful in producing positive clinical trial results. If you just took a quick glance at the performance charts of a couple of biotech focused exchange traded funds (ETFs), such as ARK Genomic Revolution ETF (NYSEARCA:ARKG) and SPDR S&P Biotech ETF (NYSEARCA:XBI), you would quickly notice how volatile performance can be.
Besides touting a strong product portfolio and robust pipelines of innovative medicines, pharmaceutical stocks really move on impressive clinical results. Below are three pharma stocks that warrant being on investors’ buy lists after they reported positive trial updates.
Alnylam Pharmaceuticals (ALNY)
Alnylam Pharmaceuticals (NASDAQ:ALNY) is a biotechnology company that develops and commercializes RNA interference (RNAi) therapeutics, a novel class of medicines that silence specific genes involved in various diseases. The biotech firm has experienced considerable growth over the years. In 2022, Alnylam grew revenue to just over $1.0 billion, which represented a 22.9% YoY increase, while in the year prior, revenue increased 77.3% YoY. Alnylam’s four approved drugs – Onpattro, Amvuttra, Givlaari, and Oxlumo – have primarily driven sales growth in recent years.
However, one of the main drivers of Alnylam’s future growth could be its cardio-metabolic franchise, which includes products such as zilebesiran, vutrisiran, and inclisiran. Zilebesiran, in particular, is an investigational RNAi therapeutic that targets angiotensinogen, a key protein involved in blood pressure regulation. In September 2023, Alnylam announced positive results from the Phase 2 KARDIA-1 trial of zilebesiran in patients with hypertension. The trial showed that zilebesiran achieved a clinically significant reduction in systolic blood pressure compared to placebo, with a favorable safety and tolerability profile. Alnylam has also entered a partnership with Roche (OTCMKTS:RHHBY), a Swiss pharma company, to co-develop and co-commercialize zilebesiran globally.
Though the biotech firm’s shares are down YTD, this string of good news should put potential investors on alert.
Roche (RHHBY)
Roche is a Switzerland-based healthcare company that operates in three segments: pharmaceuticals, diagnostics, and diabetes care. The company offers a wide range of products and services that help customers diagnose, prevent, treat, and monitor various diseases. Some of its well-known brands include Avastin, Herceptin, Rituxan, Tecentriq, Ocrevus, Hemlibra, and Xofluza. In 2023, Roche reported revenues of CHF 63.3 billion (or $71.8 billion), representing 2% YoY top-line growth. The pharmaceutical behemoth’s large revenue figures were in part driven by the strong for its newer medicines such as Ocrevus, Hemlibra, and Tecentriq.
Furthermore, in 2022, though Roche’s oncology drugs generated the most revenue for its pharmaceutical segment, YoY growth declined 1% due to increased competition. Still, the Swiss pharma giant’s inadvertent release of clinical results on Tiragolumab, which is immunotherapy drug for lung cancer patients, could signal good news for where the company’s future. As Roche conducts more experiments, additional positive results could ultimately breathe life into Roche’s oncology segment and push shares higher in the long-term.
BridgeBio Pharma (BBIO)
BridgeBio Pharma (NASDAQ:BBIO) develops and commercializes therapies for genetic diseases. Though the firm’s historic revenues have been hit or miss, BridgeBio is likely to recover its balance in both the medium and long term. BridgeBio has had two drugs approved in the U.S. and elsewhere: Nulibry, a treatment for molybdenum cofactor deficiency type A, and Truseltiq, an investigational oral therapy that targets fibroblast growth factor receptor (FGFR), a protein that regulates cell growth and differentiation.
In July, BridgeBio announced positive results from the Phase 3 PROOF trial for its therapy, acoramidis, to treat transthyretin amyloid cardiomyopathy (ATTR-CM), a serious disease of the heart muscle that can lead to heart failure. The trial showed that patients on acoramidis had an on-treatment survival rate of 81%, versus those in the placebo group who had a survival rate of 74%. Moreover, patients given the drug experienced 50% statistically significant reduction in being hospitalized for cardiovascular issues. These positive developments could eventually lead to another approved pharmaceutical drug and a reliable source of cash flows in long-run.
BridgeBio’s shares have rallied 272.8% YTD but remain below their $35 a share peak. Investors willing to bet on a company that has produced some promising results should put this biotech stock on their buy list.
On the date of publication, Tyrik Torres 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.
