3 Top Stocks That Could Keep Rising in 2024

Investors looking for stocks that could make dramatic moves in a short, defined time frame want to turn their attention to the biopharmaceutical industry.

There are less than three months left until the end of 2024, but there is plenty of time to see some dramatic share price activity from BridgeBio Pharma (BBIO 2.19%), PTC Therapeutics (PTCT -2.91%)and Vertex Pharmaceuticals (VRTX -1.86%).

The US Food and Drug Administration (FDA) is reviewing applications from all three drugmakers, and those reviews are expected to be completed by the end of the year.

A positive decision from the FDA could push these stocks to new heights, but the agency is more concerned with public health than the performance of its stock portfolio. Here’s what everyday investors should know about upcoming events that industry experts will be watching closely.

1. BridgeBio Pharma

At this moment, PfizerVyndaqel is the only easy-to-swallow treatment approved by the FDA to treat people with amyloid transthyretin cardiomyopathy (ATTR-CM). If all goes well for BridgeBio Pharma, Pfizer could have a rival to compete with before the end of the year.

The FDA is reviewing an application for Bridge Bio’s acoramidis as a treatment for ATTR-CM, and a decision is expected on or before November 29. The green light is far from guaranteed as, in 2021, the candidate failed to improve on the walking test distances. compared to a placebo.

More recently, BridgeBio produced evidence showing that acoramidis reduced patients’ risk of death by 42% compared to a placebo after 30 months of treatment. It also reduced the risk of hospitalization due to cardiovascular events by 50% compared to a placebo.

Vyndaqel’s sales hit $5.3 billion annualized in the second quarter, and the stock market apparently doesn’t expect BridbeBio to gain a significant share of the lucrative ATTR-CM space. Right now, BridgeBio has a relatively small market cap of $4.7 billion, as the future of acoramidis is uncertain. Given the benefit we’ve seen in mortality, I cautiously expect a positive decision in November, which could see this stock’s modest market cap grow.

2. PTC Therapeutics

PTC Therapeutics is a commercial company with two approved therapies that it markets itself. The company also receives royalties from Roche for Evrysdi, a gene therapy for the treatment of spinal muscular atrophy.

In the second quarter, PTC Therapeutics reported product sales of $118 million plus another $53 million in royalties from Roche. That wasn’t enough to cover operating expenses, but a potential FDA approval of Upstaza could drive the company’s bottom line into profitable territory.

Upstasis is a gene therapy for a rare disease called AADC deficiency. It is already approved in the EU, but the US FDA is still reviewing its application. The agency is expected to announce its decision on or before November 13.

With recurring revenue from three marketed products, Upstaza is not as important to PTC Therapeutics as acoramidis is to BridgeBio. That said, a positive decision could push shares higher. PTC Therapeutics’ recent market cap is $2.8 billion, which is awfully low for a company that could launch its fourth drug in the U.S. this year.

3. Vertex Pharmaceuticals

Cystic fibrosis (CF) is an inherited disease caused by defective sodium channels in the cells that line the lungs and other tissues. Before Vertex launched its first CF treatment in 2012, managing symptoms that steadily worsened was the best patients could hope for.

Currently, CF is a manageable condition for more than 68,000 patients on one of Vertex’s treatments. The company’s lead drug, Trikafta, is a combination of tezacaftor and two other drugs that patients must take twice a day. It is the main driver of product sales that are expected to exceed $10.5 billion this year.

Vertex Pharmaceuticals stock could see a significant rally in late 2024. The FDA is reviewing a new, longer-lasting regimen that requires a daily dose. An approval decision is expected on or before January 2. Although the date is slated for early next year, the government agency is likely to announce its decision before the New Year holiday.

Trikafta’s patents are expected to maintain market exclusivity for Vertex until 2037 in both the US and the EU. If the FDA approves the company’s new, longer-lasting triple therapy, it could block the CF drug market for even longer.

Is it time to buy?

FDA decisions could push these stocks much higher before the end of the year, but there are no guarantees. With strong profits right now, Vertex Pharmaceuticals is the least risky of these three stocks that could rally by the end of the year.

Vertex is the best option for people who don’t have a high risk tolerance, but BridgeBio Pharma has a lot to gain if it gets a positive FDA approval decision this year. That said, BridgeBio is so risky that it is only a suitable investment for those who are very young or already have enough savings to retire.