雅虎香港財經 3 Biotech Stocks with Blockbuster Drug Pipelines: April Edition
Biotech stocks offer the opportunity to invest in life-saving treatments and drugs. So not only can you make massive gains but you are also investing in the advancement of modern medicine. But not all biotech companies are the same. Some are established pharmaceutical giants while others are pre-revenue startups that are banking on a drug breakthrough.
What this means is that an FDA approval or denial can have major consequences on the stock. If you want to invest in biotech stocks, you will need to keep up with the company’s clinical trial progress as well as study other offerings by the competition. Here are our top three choices for biotech stocks with blockbuster drug pipelines that could pay off massively in the future.
Moderna (MRNA)
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Moderna (NASDAQ:MRNA) is an American pharmaceutical company based in Massachusetts. This company is best known for its mRNA vaccine for the novel coronavirus which catapulted the stock to the mainstream. MRNA is down by nearly 20% over the past year but Wall Street analysts still see about 25% upside with an average one-year price target of $132.36.
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As its name suggests, Moderna focuses primarily on RNA and mRNA vaccines. Its current pipeline shows how vast the scope of Moderna’s research is. Moderna is currently developing treatments for the endemic stage of COVID-19, RSV, influenza and various oncology treatments. As of 2023, Moderna had more than 45 different treatments at the clinical or pre-clinical trial stages.
Revenue has dipped for Moderna since the windfall of the COVID-19 vaccine. Still, the company has a 10-year revenue CAGR of 43%. Shares are trading at 6.1x sales which is higher than in recent years for mRNA but lower than the average P/S ratio of the biotech industry which sits at about 8.1x sales.
Twist Biosciences (TWST)
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Twist Biosciences (NASDAQ:TWST) is a San Francisco-based biotech company that specializes in DNA and synthetic DNA treatments. Shares of TWST are down by about 9.0% in 2024 but Wall Street analysts remain optimistic. They have an average one-year price target of $40.25 which represents about 30% upside from its current price.
This biotech company has a unique business strategy that has allowed it to stand apart from its competition. Twist can write up to one million DNA sequences directly onto a silicon chip which is used by drug makers for research and development. The technology is unique and is highly supported by Cathie Wood.
Incredibly, TWST has increased revenue for 26 consecutive quarters and has a 5-year CAGR of 52%. Shares are trading at a very reasonable 6.8x sales. Like Moderna, this is below the industry average of 8.1x sales. Twist has a unique technology and clearly business is booming. If you’re bullish on biotechs and genomics, TWST is a nice play on the technology side of drug pipelines.
Axsome Therapeutics (AXSM)
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Axsome Therapeutics (NASDAQ:AXSM) is an American biotech firm that was founded in 2012. Shares of AXSM have lost about 7.0% in 2024 but analysts remain upbeat on the stock with an average price target of $123.00. This represents nearly 75% upside and this jumps to about 175% when you compare it to the street-high price target for AXSM of $190.00.
This company has a budding pipeline of treatments for a wide range of diseases. Axsome currently has five treatments that are in the clinical or pre-clinical stages of research for diseases such as migraines, Alzheimer’s, smoking cessation and fibromyalgia. As you might be able to tell, Axsome focuses primarily on Central Nervous System (CNS) diseases which have minimal or limited current treatments.
Quarterly revenue for Axsome has exploded from $8.8 million in June 2022 to $270 million in the quarter ending December 2023. Due to this, Axsome’s P/S ratio has fallen from 50.12x sales in 2023 to 12x sales for the current quarter. This biotech company continues to exhibit massive growth with its strategy of targeting diseases with minimal drug competition.
On the date of publication, Ian Hartana and Vayun Chugh did not hold (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.
Chandler Capital is the work of Ian Hartana and Vayun Chugh. Ian Hartana and Vayun Chugh are both self-taught investors whose work has been featured in Seeking Alpha. Their research primarily revolves around GARP stocks with a long-term investment perspective encompassing diverse sectors such as technology, energy, and healthcare.
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