Next Big Thing: 3 Biotech Stocks to Watch for Groundbreaking Advances
The International Monetary Fund believes that most of the impact from tighter money policies has already affected the U.S. economy, with the rest expected this year. Despite worries about a recession, the U.S. has shown resilience and strong growth since interest rates started going up in March 2022. This suggests a positive outlook for the U.S. economy in the coming months. With our economy, looking to perform well this year you need to invest in these biotech stocks that will provide high returns this year, with their new advances.
Catalyst Pharmaceuticals (CPRX)
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Catalyst Pharmaceuticals (NASDAQ:CPRX) is a pharmaceutical company that focuses on licensing the rights to the cures of rare diseases. It has a valuation of $14.36, with a YoY decrease of 28.70%. However, it appears to be poised for growth.
Although Catalyst has consistently missed earnings estimates by small margins, 4 Yahoo Finance! investors have given it a buy rating. Additionally, 5 analysts have given it a price target of $26.20, far above its current valuation. It has a debt of $3.64 million, with a free cash flow of $120.97 million. This gives it plenty of liquid assets to invest in the development of new drugs.
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A few key drugs Catalyst has in its pipeline include drugs for Duchenne muscular dystrophy. This disease will have a market of $2.07 billion in 2031, with a CAGR of 4.7%. This is much more than Catalyst’s current market cap of $1.69 billion, showing potential for future growth. Additionally, sales for current drugs are expected to hold steady. This makes it one of those biotech stocks to consider.
Management is expected to continue buying the rights to and developing drugs for niche, in-demand disorders. This opens the possibility of future growth. Coupled with being perceived as undervalued at the moment, it becomes clear why Catalyst Pharmaceuticals is a stock you should invest in.
Estrella Immunopharma (ESLA)
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Estrella Immunopharma (NASDAQ:ESLA) is an American biopharmaceutical company focusing on the development of T-cell therapies. Headquartered in Emeryville, CA, ESLA has amassed a valuation of $1.03.
Developing innovative therapies for solid tumors using novel “mark-and-kill” methods, ESLA has amassed a valuation of $62.67 — down 14.17% in the past month.
Valued at $36.26 million, the biopharmaceuticals market size is estimated at $516.79 billion in 2024 and is expected to reach $761.80 billion by 2029, growing at a CAGR of 8.07% during the forecast period.
Financially, ESLA improved on almost every metric during Q3 2023. ESLA reported $-1.87 million in net income, a YoY increase of 35.17%. Total assets also received a massive surge of $27.35 million increasing over 750% YoY. Overall, Q3 ‘23 proved to be successful for ESLA, with the company outperforming previous years on net change in cash, increasing 1,886.80% YoY. This increase in liquidity makes it one of those biotech stocks for investors to pay close attention to.
ESLA is set up for success through recent research in novel drugs and therapies. It is developing advanced T-cell therapies, particularly focusing on its CD19-Redirected ARTEMIS T Cells. This approach is being applied initially to high-risk blood cancers. As ESLA continues to include an emphasis on research and development, expect ESLA valuation to climb as more customers gravitate towards the company’s products.
VolitionRX (VNRX)
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VolitionRX (NYSEAMERICAN:VNRX) is a biotech company that takes part in the creation of blood-based cancer tests, helping diagnose a range of cancers. The company is based in Henderson, NV, and has amassed a valuation of $0.86 with a strong increase of 48.88% in just the last month.
VNRX is fully established in the market but still shows signs of future growth. Valued at $67.94 million in 2023, The global biotechnology market size accounted for $368 Billion in 2021 and is anticipated to reach $1,334 Billion by 2030 with a CAGR of 15.5%.
Financially, VNRX improved on almost every metric during Q3 2023. VNRX reported $165.21K in revenue, a YoY increase of 405.02%. Net profit margin also received massive surges of $-5.07K, increasing over 70% YoY. Overall, Q3 ‘23 proved to be successful for VNRX, with the company YoY outperforming EPS by 23.64%.
VNRX is set up for success through recent announcements of closing on an aggregate of $5.5 million in financing from investors at Wallonie Entreprendre in Belgium. It has also recently partnered with leading laboratories in the UK and Ireland to launch a groundbreaking cancer test for the early detection and monitoring of cancer in dogs. As VNRX continues to include an emphasis on innovation, expect VNRX valuation to climb as more investors and clients gravitate towards the company’s services.
On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
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