Biotechnology offers breakthrough drugs and treatments that open new doors in the field of medicine. Companies are releasing more drugs and developing state-of-the-art methods to treat previously untreatable conditions. And their stocks show potential to soar upon Food and Drug Administration (FDA) approval and public market release.
This excellent opportunity that biotech stocks present can provide investors with potentially exponential returns.
Let’s learn about these three biotech stocks and their unimaginable potential with cutting-edge treatments and exciting approvals.
Regeneron (REGN)
Regeneron (NASDAQ:REGN) manufactures its most prevalent drugs, Eylea and Dupixent, for treating eye disease and eczema. Ever-increasing popularity of these treatments drives Regeneron’s stock to new heights, having fueled its steady growth since 2020.
In fact, Regeneron’s most recent quarterly report reported earnings and revenue misses due to inventory issues with its two top sellers. While this may discourage some investors, this incident indicates Regeneron’s sheer volume of demand for its products.
There is no reason to think that upon solving Regeneron’s inventory issues, its sales will return to normal levels and likely continue to increase. In other words, any backlash that lowers Regeneron’s price is an opportunity for investors with patience.
Eylea is a more favorable option for many patients than its leading competitors’ alternatives and shows no signs of losing demand. To increase future growth, REGN is expanding its reach into new, in-demand fields like gene therapy. So, it could see exciting products coming down the pipeline in the coming years.
Sarepta Therapeutics (SRPT)
Sarepta Therapeutics (NASDAQ:SRPT) develops and produces a niche set of treatments for the rare disease Duchenne Muscular Dystrophy (DMD). Elevidys has gained the most attention from these treatments, creating excitement among investors. Elevidys is a gene therapy treatment that earned FDA approval last June.
Initially, the approval was part of an accelerated approval process. This means that Sarepta didn’t have to go through the entire process but instead passed the “reasonable” threshold required. However, SRPT has taken the necessary steps to receive full approval from the FDA. So, it has received FDA Acceptance of an Efficacy Supplement this year.
This allows Sarepta Therapeutics to expand Elevidys’s labeled indications and send them on their way to receiving full FDA approval after a review, set to take place late June. The expanded indications allow for a broader scope of patients.
In addition to the anticipated news, Sarepta’s most recent Q1 2024 report included an EPS beat and 55% revenue growth year-over-year (YOY). Elevidys’ predicted success will accelerate the company’s future growth. Therefore, it’s not too late for investors to grab shares while they are still reasonably priced.
CRISPR Therapeutics (CRSP)
CRISPR Therapeutics (NASDAQ:CRSP) specializes in gene-editing treatments for some of the most complex conditions, such as transfusion-dependent beta-thalassemia and sickle cell disease. The company’s leading product is Casgevy, developed in partnership with the popular biotech giant Vertex Pharmaceuticals (NASDAQ:VRTX).
In February, CRISPR announced approval for Casgevy in the U.S., E.U., Great Britain, Bahrain and the Kingdom of Saudi Arabia. The company identified 35,000 patients with sickle cell disease or transfusion-dependent beta-thalassemia in the U.S. and Europe alone that need the treatment.
Additionally, CRISPR is improving its treatment through in vivo editing of stem cells, which could further expand Casgevy’s patient demographic. The company has a host of products in its pipeline, such as CTX211, a treatment for Type 1 Diabetes.
The company has just begun to climb, so investors won’t want to miss their chance to own this stock before it reaches new heights.
On the date of publication, Joel Lim 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.
