Some of the market’s favorite biotech stocks have created immense wealth, as in the recent weight-loss drug stock boom.
On May 26, Viking Therapeutics (NASDAQ:VKTX) was trading around $20.25. Today, after hitting a high of $99.41, it trades at $69.55 – again – an impressive opportunity. Or, look at Eli Lilly (NYSE:LLY). In May 2022, it traded near $375. Now, after hitting a high of $784, it’s at $770.
That, plus innovation, demand for better treatment, pharmaceutical companies strengthening pipelines, and a resurgence of M&A, biotech stocks could offer some of the most explosive opportunities.
Also, according to Market.us, the global biotech market that was valued at $1.023 trillion in 2022 could be worth over $3.67 trillion by 2032.
With plenty of catalysts ahead, let’s examine three more of the market’s favorite biotech stocks to buy and hold today.
Terns Pharmaceuticals (TERN)
Investors may want to keep an eye on Terns Pharmaceuticals (NASDAQ:TERN). While it already ran from a low of $3.50 to $6.60, it offers plenty of future upside potential.
The clinical-stage biopharmaceutical company owns a portfolio of small-molecule product candidates to address serious diseases, including oncology and obesity. It expects to post data from its Phase 1 study for its oral GLP-1 obesity drug TERN-601 in the second half of the year. As we near that data, expect TERN to run even more.
Further, the company has $263.3 million in cash on hand. That’s sufficient to support its expenses through 2026.
Outside of obesity, the U.S. Food and Drug Administration (FDA) just granted orphan drug designation for its TERN-701 treatment of chronic myeloid leukemia. This treatment is currently in Phase 1 clinical development with interim data expected in the second half of the year.
Immunovant (IMVT)
Another one of the Street’s favorite biotech stocks is Immunovant (NASDAQ:IMVT), where recent weakness is an opportunity.
First, analysts see promise in the company’s lead drug candidate, batoclimab, for issues such as thyroid eye disease and myasthenia gravis. Next, the company just noted that a “Phase 3 trial of batoclimab showed that the monoclonal antibody led to sustained improvement for patients with generalized myasthenia gravis (gMG), as compared with placebo,” according to AJMC.com.
Also, LifeSci analysts are maintaining a buy rating on IMVT and a $53 price target. Goldman Sachs initiated coverage with a buy rating with a $50 target.
“Goldman Sachs has projected peak sales for IMVT-1402 [a potential treatment of IgG-mediated autoimmune diseases] to reach $4.4 billion, assuming the drug’s efficacy aligns with that of the most advanced competitors. However, the firm also suggests there could be an upside potential of up to $6.2 billion in peak sales if IMVT-1402 proves to be best-in-class in terms of efficacy,” noted by Investing.com.
Even George Soros is a fan of the stock, holding a $6 million stake in IMVT. Steven Cohen’s Point72 also just bought 2.67 million shares of IMVT, as noted by Hedge Follow.
ProShares Ultra NASDAQ Biotechnology ETF (BIB)
Or, if you’d prefer to gain exposure to 225 biotech stocks at a low cost, examine the ProShares Ultra NASDAQ Biotechnology ETF (NASDAQ:BIB).
With an expense ratio of 0.95%, the fund seeks daily investment results of two times the daily performance of the Nasdaq Biotechnology Index. Since November, the ETF ran from a low of $41.74 to a recent high of $62. Now at $57.81, I’d like to see the BIB ETF closer to $70 near-term and $100 over the long haul.
Some of BIB’s top holdings include Amgen (NASDAQ:AMGN), Biogen (NASDAQ:BIIB), Gilead Sciences (NASDAQ:GILD) and Vertex Pharmaceuticals (NASDAQ:VRTX).
What’s nice about an ETF like the BIB is that we can gain exposure to a good deal of solid biotech stocks. All will be impacted by the catalysts mentioned earlier. And instead of paying $27,600 for 100 shares of Amgen, for example, we can pay $5,600 for 100 shares of an ETF that exposes us to AMGN. It’s cheaper and safer.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
