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3 Monster Biotech Stocks to Buy Before 2025

These companies are almost at the sweet spot of risk versus reward in biotech.

Many investors rightly identify biotech stocks as riskier than average, and those stocks certainly have a habit of earning their reputation. Still, there are a few emerging biotechs that have revenue and a clear path to generate even more in the short term, making them much more stable than their earlier-stage peers, which aren’t yet certain to sell anything. not at all

With that in mind, let’s examine three monster biotechs worth buying before the end of this year.

1. Iovance Biotherapeutics

Purchase Iovance Biotherapeutics (IOWA) stock before the end of the year means exposure to a fast-growing business that offers many more opportunities for further expansion.

Amtagvi, its cell therapy for advanced melanoma, is its first product and is also likely to be the main driver of growth through the end of the decade.

Since the approval of Amtagvi in ​​the middle of the first quarter, the launch of the therapy has continued successfully; the company had total sales of $31.1 million in the second quarter. This is just the beginning; management expects revenue of up to $475 million for fiscal 2025. To achieve this, it is seeking approval in international jurisdictions right now and should receive responses in early 2025 from key regions such as the E.U.

Beyond next year, Iovance also has a pipeline full of programs investigating whether Amtagvi could be useful for treating other types of cancer, either as monotherapy or as a combination treatment with other oncology drugs. Most of these programs are in mid-clinical trials. So, over the next three years, the company is likely to gain approval for additional indications under investigation, and its addressable market could expand.

And that’s why it pays to buy the stock sooner rather than later. It may not get cheaper in the long run than it is now.

2. CRISPR Therapeutics

With its first cell therapy, Casgevy has been successfully commercialized for a pair of inherited blood disorders, CRISPR Therapeutics (CRSP) is in a state of maturity similar to Iovance.

To date, only 20 patients have been treated with the therapy, which is a functional cure for both sickle cell disease (SCD) and beta thalassemia. Wall Street analysts on average expect CRISPR Therapeutics to report revenue of $51 million this year — and about $288 million next year, once the company’s authorized treatment centers (ATCs) are established all over the globe.

Casgevy’s addressable market could be expanded somewhat with additional research and development (R&D), but fundamentally it targets a pair of rare diseases, so the total addressable market size is destined to be small. Therefore, the biotech’s roadmap for growth will likely stem from its cell therapies for oncology indications, four of which are in clinical development.

As these programs move toward approval and commercialization, favorable clinical data could boost the stock ahead of any real revenue — and at least one program will report data this year.

3. Zealand Pharma

Zealand Pharma (ZLDP.F) collects royalties and milestone payments from its drugs by licensing them to pharmaceutical companies rather than shouldering the burden of marketing the products itself. In Q2, revenue totaled just $4.9 million, but it’s unlikely to stay that low for much longer. Its pipeline focuses on drug development in a potentially very profitable area: weight loss.

The most advanced program in Zealand is already in the third phase of studies and has a major pharmaceutical partner, Boehringer Ingelheim, ready to go if the candidate is approved. More than one of Zeeland’s programs has reported favorable data from clinical trials, suggesting it could find market share due to its unique advantages compared to high-end products made by leaders such as Eli Lilly and Novo Nordisk. That means it probably won’t matter much that it hits the market a little late.

Another thing that positions Zealand Pharma strongly is its massive amount of cash. In its fiscal second quarter, it had more than $1.2 billion in cash, cash equivalents and short-term investments, while its total quarterly operating costs were just $42.1 million. This biotech won’t need to take on debt or issue more stock to generate capital anytime soon — so shareholders will be able to keep more of their earnings when they start trickling out again.

Alex Carchidi has no position in any of the shares mentioned. The Motley Fool has positions in and recommends CRISPR Therapeutics and Iovance Biotherapeutics. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.

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