Investors know that the world of biotech stocks is home to a great percentage of opportunities that can triple and quadruple their capital. It’s also fairly easy to identify such stocks using screener tools that can tease out such opportunities. Investors willing to pursue these opportunities are clearly those who have a penchant for risk seeking behavior. Of course, risk and reward go hand in hand and the rewards here can be great.
AbCellera Biologics (ABCL)
AbCellera Biologics (NASDAQ:ABCL) continues to build a platform dedicated to drug discovery and development. This is one of the hotter areas within biotech stocks due to the emergence of artificial intelligence. AI and machine learning are speeding the time from molecule discovery to therapeutic commercialization at rates that couldn’t have been expected just years ago. That rapid development makes companies like ABCL particularly noteworthy.
The company’s platform identifies antibodies existent in natural immune responses. It continues to develop that platform and is collaborating with multiple partners including Eli Lilly (NYSE:LLY).
Generally speaking, demand is high for services such as those that the company provides. AbCellera Biologics delivers clinically relevant drug candidates to its partners much more quickly than was possible until very recently. In the high stakes world of pharmaceutical development which requires a long time frames, every second counts.
AbCellera Biologics stock is expected to increase in price by as much as 5X and carries a “strong buy” rating.
Vir Biotechnology (VIR)
Vir Biotechnology (NASDAQ:VIR) continues to undertake a pivot in early 2024 while remaining highly regarded and full of potential. Shares of the stock currently trade for approximately $10 and have true 10x potential while also maintaining a “buy” rating.
The company was very strong through 2022 and benefited from substantial collaboration revenues. Those revenues more than dried up in 2023, falling by more than 100% in Q3. Grant revenues more than doubled during the same time frame, but were insignificant in total value by comparison.
The company disclosed a strategy to pivot in late 2023 that will result in job losses and a new strategic focus.The firm is now focusing on multiple clinical programs related to hepatitis. It is also shutting down two of its locations resulting in a decrease in headcount of approximately 12%. That headcount reduction is expected to result in $40 million in cost savings.
Its drug Sotrovimab has emergency use authorization in 40 plus countries outside of the U.S. and has been shown to be effective in clearing the immune system of Covid-19.
Avidity Biosciences (RNA)
Avidity Biosciences (NASDAQ:RNA) continues to develop therapeutics used in the treatment of rare muscular diseases. Its stock has the potential to quadruple should its therapeutics prove efficacious in the treatment of diseases including muscular dystrophy.
The company is developing therapeutics based on the delivery of oligonucleotides that target the RNA in skeletal muscle. It is likely that investors will be able to take advantage of positive news from the company in the coming weeks.
The company will be presenting updated data from all three of its clinical programs in early March.
Oligonucleotides are also indicated in the treatment of cardiac conditions. Avidity Biosciences is also advancing partnered cardiology programs toward commercialization. The company plans to commence phase 3 trials of its program for adults living with myotonic dystrophy in mid 2024. Share prices rebounded sharply in late 2023 on the news of a collaboration with Bristol-Myers Squibb (NYSE:BMY). Avidity Biosciences remains one of the biotech stocks to watch in the treatment of rare muscular diseases.
On the date of publication, Alex Sirois 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.
