The 3 Best Biotech Stocks to Invest in for Big Gains in 2024

Stocks to buy

The quest for prime biotech stocks for gains will always be relevant. Moreover, 2024 promises a surge in technology and science, positioning biotech firms at the forefront of novel medical breakthroughs. Grand View Research underscores this optimism, projecting a robust 13.96% CAGR for the biotech market from 2024 to 2030. Fueling this growth is an expanding clinical trial pipeline and robust regulatory backing for startups.

Moreover, strides in DNA sequencing, mRNA, and cell-based assays signal a burgeoning era for biotech. Investing in biotech stocks goes beyond mere financial returns as it signifies backing revolutionary progress. The sector thrives on the potential for transformative advancements and disruptive technologies, offering a promising growth-filled future. Steering your portfolio towards these innovators lets you observe their growth and involves you in it. As biotech companies expand and innovate, your investment grows and aligns with the heartbeat of scientific breakthroughs.

Ardelyx (ARDX)

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Ardelyx (NASDAQ:ARDX) is making waves in the biotech sector, with its share price soaring 202% over the past year, reflecting its innovative approach to oral medication. 2023 was a milestone year for Ardelyx, marking its debut as a commercial entity. The launch of XPHOZAH, a synergistic addition to their already successful IBSRELA, significantly broadened their treatment spectrum.

Moreover, the company demonstrated impressive latest quarter results, showcasing a monumental 1030.99% year-over-year revenue jump to $56.39 million. This leap is supported by a steady rise in IBSRELA prescriptions, translating into a solid 22% uptick in net sales revenue. With IBSRELA’s projected peak annual U.S. net product sales surpassing $1 billion, the company’s financial robustness is underscored by its substantial $165.1 million in liquid assets.

TipRanks analysts echo the market’s optimism, rating Ardelyx as a ‘strong buy’ with a potential 34.62% growth. This reflects the company’s strategic strength and innovation capability within its specialized markets.

Alkermes (ALKS)

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Dublin-based Alkermes (NASDAQ:ALKS) is redefining its market presence, now focusing purely on neuroscience after segregating its oncology division into Mural Oncology (NASDAQ:MURA). This strategic pivot enhances its core competency in addressing psychiatric and neurological disorders.

Moreover, the company’s commitment to innovation is evident from the encouraging phase 3 results of LYBALVI, demonstrating its efficacy in maintaining metabolic stability and controlling symptoms in schizophrenia and bipolar I disorder patients over four years.

Financially, Alkermes revealed a substantial 51% year-over-year surge in total sales, amounting to $380.9 million. The earnings per share outperformed expectations by 21 cents, standing at 64 cents, while net income skyrocketed by 174.6% year-over-year, reaching $47.7 million. These strong financial results and positive clinical trials position it well in the biopharmaceutical market. TipRanks analysts reinforce this view, giving Alkermes a ‘moderate buy’ rating and foreseeing a 25% upside, reflecting confidence in the company’s strategic direction and growth potential in the sector.

Viking Therapeutics (VKTX)

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Viking Therapeutics (NASDAQ:VKTX) is charting a strong course in biopharmaceuticals, focusing on metabolic and endocrine disorders. The company’s stock has surged 182% over the past year, buoyed by VK2735’s Phase 1 success in obesity treatment, significantly reducing body weight. The completion of Phase 2 clinical trial enrollment amplifies expectations, securing Viking’s spot as an influential entity in the sector​​​​​​.

Simultaneously, VKTX is advancing VK2809, its leading thyroid hormone receptor beta agonist aimed at NASH and fibrosis, and is set to unveil key histology results from the VOYAGE study next year. With a strong balance sheet of around $376 million, the company is advancing its clinical pipelin e and reinforcing its financial foundation.

Reflecting this upward trajectory, TipRanks analysts bestow VKTX with a ‘strong buy’ rating, foreseeing a substantial 50.5% upside potential. This positive outlook encapsulates the company’s strategic advancements and the transformative potential of its product pipeline in reshaping treatment landscapes. This makes it one of those biotech stocks for gains.

On the date of publication, Muslim Farooque 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

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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