The 3 Most Undervalued Biotech Stocks to Buy in February 2024
With patience, some of the most undervalued biotech stocks can create massive wealth.
Look at ACADIA Pharmaceuticals (NASDAQ:ACAD), for example. At one point, it traded at 70 cents, as it developed treatment for Parkinson’s disease psychosis. Years later, it would hit a high of $45.10 for a win of about 6,300%.
Most recently, and in far less time, CRISPR Therapeutics (NASDAQ:CRSP) exploded from a low of about $40 to a high of nearly $77.50. Even Corbus Pharmaceuticals (NASDAQ:CRBP) popped from about $5 to a high of nearly $40 a share in months. All thanks to a positive Phase 1 trial of a potential cancer drug.
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The best news it that there’s plenty of undervalued biotech stocks with similar potential. In fact, here are three I’ve been watching for some time.
Viking Therapeutics (VKTX)
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Viking Therapeutics (NASDAQ:VKTX) already ran from about $8.50 to a recent high of $24.63. But it’s still severely undervalued, even with positive trial data on its obesity treatment. After all, when it comes to obesity treatments, the potential is significant.
Look at Eli Lilly (NYSE:LLY), for example. Now trading at $730 a share, it just blew earnings out of the water, thanks in part to obesity drug sales. In fact, sales of its Zepbound treatment soared to $175.8 million in less than a month, according to Seeking Alpha. That was well ahead of the $75 million expected by Wall Street.
VKTX could have similar potential. For example, in October, it posted promising data from a Phase 1 study of VK2735, which resulted in weight loss. Furthermore, speculation abounds that VKTX could be ta potential takeover target.
ADC Therapeutics (ADCT)
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ADC Therapeutics (NYSE:ADCT) is a pioneer in the field of antibody-drug conjugates (ADCs). The company’s pipeline comprises ADCs in clinical trials for both hematologic and solid tumor cancers. Also, it’s undervalued, even after rocketing from about 50 cents to $4.
For one, ADCs have become one of the hottest opportunities in biotech, according to Pfizer (NYSE:PFE) CEO Albert Bourla. That explains the reason PFE just bought Seagen for $43 billion, and why it wants to acquire even more ADC companies.
Additionally, ADCT may be a buyout target for a major company. This followed an announcement of a extremely successful trial of a combination treatment to address relapsed follicular lymphoma (the second most common subtype of non-Hodgkin lymphoma), as noted in a company press release.
“In this first-ever study evaluating the combination of Zynlonta and rituximab in patients with relapsed or refractory follicular lymphoma, the overall response rate was 96% and the complete response rate was 85%, with a significant number of patients achieving an early response,” added Mohamed Zaki, MD, PhD, Chief Medical Officer of ADC Therapeutics.
Intellia Therapeutics (NTLA)
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Finally, we have Intellia Therapeutics (NASDAQ:NTLA), a gene editing company. It just saw its closest competitor, CRISPR Therapeutics, explode on U.S. Federal Drug Administration (FDA) approval of its Sickle Cell Anemia treatment.
Currently sitting at triple-bottom support, NTLA is wildly undervalued, with a good deal of upside potential. Further, Cathie Wood’s Ark Invest just bought 131,000 NTLA shares, now owning 11% of the shares outstanding.
Also, the company recently announced the publication of positive interim Phase 1 data for NTLA-2002 in patients with hereditary angioedema in The New England Journal of Medicine.
“The interim NTLA-2002 clinical data published suggest that a single dose of NTLA-2002 may eliminate angioedema attacks for people suffering from hereditary angioedema,” said Intellia President and CEO John Leonard, M.D.
Lastly, the company is on track to initiate a global pivotal study for NTLA-2002 in the second half of this year. Therefore, undervalued shares of NTLA have solid catalysts moving forward.
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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