Novavax (NASDAQ:NVAX) stock was among the laggards in the race for the vaccine against COVID-19. Unsurprisingly, NVAX stock plunged from highs of $320 in 2021 to recent lows of $3.5.
However, with the company announcing a deal with Sanofi (NASDAQ:SNY), the stock skyrocketed by 280% last month. With the likelihood of the return of the meme stock frenzy, it’s a good time to look at biotech stocks to buy for returns that can replicate the performance of NVAX stock.
Therefore, I am looking at speculative ideas for multibagger returns in the blink of an eye. The column does not discuss blue-chip or high-quality biotech stocks. The biotech stocks discussed represent companies with the possibility of positive news regarding drug pipeline outcomes.
The possibility of rate cuts in the second half of 2024 strengthens my conviction on a broad-based rally for speculative ideas. Easy money policies translate into higher trading activity across risky asset classes. Let’s, therefore, discuss three biotech stocks to buy before they skyrocket.
Acasti Pharma (ACST)
Acasti Pharma (NASDAQ:ACST) is a micro-cap biotech stock that looks poised for a big rally after being sideways in the last 12 months. As an overview, Acasti is a clinical-stage company working on products for rare and orphan diseases in Canada.
The company’s pipeline includes GTX-104, an injectable formulation of nimodipine being developed for intravenous infusion (IV) in aSAH patients. The other molecular entities in the pipeline include GTX-102, GTX-101 and GTX-201.
However, GTX-104 is in the third stage of clinical trials and is a potential catalyst for ACST stock upside. It’s worth noting that Acasti plans to submit the new drug application (NDA) for GTX-104 in the first half of 2025. This will be an important development, and I expect ACST stock to rally prior to the NDA submission.
Another important point is that the company secured a $7.5 million private placement last quarter. With this, the cash runway extends into Q2 2026.
Entera Bio (ENTX)
It’s worth noting that Entera Bio (NASDAQ:ENTX) has skyrocketed by almost 300% year-to-date. However, a market valuation of $85 million indicates a headroom for further upside, with clinical trials delivering encouraging results.
As an overview, Entera Bio focuses on developing and commercializing orally delivered peptide and protein therapeutics.
The company has five clinical programs with EB613 (for osteoporosis) set to enter phase three trials. It’s worth noting that 200 million women globally have osteoporosis. Further, more than one billion women will enter menopause in the coming years.
This presents a big opportunity for EB613, with no new osteoporosis therapy being approved since 2019. It’s, therefore, not surprising the ENTX stock is surging higher as clinical trials are set to enter the critical third stage. Bone mineral density (BMD) endpoint qualification for EB613 is expected by January 2025. That’s a potential catalyst for a sustained rally in ENTX stock.
Karyopharm Therapeutics (KPTI)
Karyopharm Therapeutics (NASDAQ:KPTI) is a commercial-stage biotech company. KPTI stock has been in a correction mode with a downside of 55% in the last 12 months. However, the selling is overdone and the stock is poised for a big rally.
It’s worth noting that the company’s commercialized candidates, XPOVIO and NEXPOVIO, have approvals in 40 countries.
Further, the last-stage pipeline (SELINEXOR) comprises candidates for endometrial cancer, multiple myeloma and myelofibrosis. With the current late-stage pipeline, the company expects a $2 billion peak revenue potential in the United States.
Earlier this month, $148 million of existing convertible notes due in 2025 were extended to 2029. The company also issued a $100 million senior secured term loan due 2028. With refinancing, Karyopharm Therapeutics is better positioned from a financial perspective.
For 2024, the company has guided for revenue of $140 to $160 million. U.S. XPOVIO net product revenue is expected at $100 to $120 million. With approval in multiple countries, there is headroom for healthy revenue growth in the coming years.
On the date of publication, Faisal Humayun did not hold (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.
