3 Biotech Stocks With the Strongest Clinical Pipelines
Biotech is still one of the most exciting sectors on the market. Recession-proof, the sector is still thriving with millions of retiring baby boomers, mergers and acquisitions, new innovation, the introduction of artificial intelligence with drug discovery and demand for new treatments. Plus, with industry heavyweights nearing patent expirations, many are on the hunt for fresh new ideas — great news for biotech stocks to buy with strong pipelines.
In fact, according to Genetic Engineering & Biotechnology News, “a significant number of blockbuster drugs are losing their exclusivity in the next five years, and we expect that generic and biosimilar competition will be particularly fierce and intense due to cost-containment pressures,” reported Fitch Solutions. “We expect M&A and market consolidation rates to increase in the short to medium term as pharmaceutical companies turn to acquisitions to maintain a constant revenue stream and protect against the upcoming patent cliff.”
Again, that’s great news for these top biotech stocks to buy, including these three.
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Biotech Stocks to Buy: CRISPR Therapeutics (CRSP)
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CRISPR Therapeutics (NASDAQ:CRSP) has been wildly explosive. Since November began, the gene-editing stock rallied from a low of about $43.75 to $58.58. All after, a U.S. FDA advisory panel said its treatment for sickle cell anemia, exa-cel, is safe and effective. Now, if the FDA itself approves the treatment on Dec. 8, it could potentially help tens of thousands of people.
Even better, the company’s strong diabetes platform has multiple drugs in Phase 3 trials and could soon reach the market, as well. It also has ongoing clinical trials for CAR-T targeting CD-19 in B-cell malignancies. Plus, it has ongoing clinical trials for CAR-T targeting CD70 in T cell malignancies and solid tumors.
There’s also an ongoing trial for VCTX211, an allogeneic, gene-edited, stem cell-derived product candidate for the treatment of Type 1 Diabetes. The company is advancing CTX310, which will target angiopoietin-related protein 3, which, according to NIH.gov, is “an inhibitor of both lipoprotein lipase and endothelial lipase in humans.”
Exelixis (EXEL)
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There’s also Exelixis (NASDAQ:EXEL), which is working to discover, develop and commercialize new treatments for cancers. At the moment, its product portfolio includes Cabometyx, Cometriq and Cotellic. Its chief product, Cabometyx, is gaining big attention as a “leading tyrosine kinase inhibitor for the treatment of renal cell carcinoma,” as noted by Seeking Alpha.
The company also posted Phase 3 results for Cabometyx for the treatment of patients with neuroendocrine tumors. Apparently, the treatment met its primary objectives and showed “dramatic improvement.” Analysts at Bank of America (NYSE:BAC) like EXEL, raising their price target to $27 from $25, with a Buy rating. HC Wainwright also initiated coverage with a buy rating and a $28 price target.
Acadia Pharmaceuticals (ACAD)
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Investors may also want to pay close attention to Acadia Pharmaceuticals (NASDAQ:ACAD).
Not only does the company have two FDA-approved drugs on the market for Parkinson’s disease psychosis and Rett syndrome, but it also has a dominant position with treatments for neurological issues. Better, it has a strong pipeline of candidates for Prader-Willi syndrome — a genetic disorder that can lead to obesity and intellectual disability — Alzheimer’s disease psychosis and issues having to do with schizophrenia.
Even better, analysts at Mizuho (NYSE:MFG) just upgraded ACAD to a Buy, with a price target of $35 — all thanks to the company’s Daybue oral therapy for the treatment of Rett syndrome. The firm also believes ACAD’s Phase 3 trial for “pimavanserin in negative schizophrenia has a high likelihood of reading out positive data in Q124,” as noted by Seeking Alpha.
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.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
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