Biotechnology companies offer intriguing investment opportunities for those seeking dramatic growth potential. However, the industry’s speculative nature and volatility mean that average investors should tread lightly. Here are three groundbreaking biotech stocks that have recently experienced significant growth and may continue to do so in the near term.
Invivyd (NASDAQ:IVVD) is a pharmaceutical manufacturer that offers antibody-based products to prevent and manage illnesses such as COVID-19 and Influenza. It currently has six COVID-19 and one influenza treatment within clinical trials. Invivyd reported a net loss that shrank by 13% compared to the year before and had a cash position of approximately $265 million for the end of the third quarter. The stock surged by 120% following its announcement on Dec. 18 that it received positive top-line results regarding VYD222, a preventive treatment for COVID-19. On Jan. 3, IVVD announced that it submitted an emergency use authorization (EUA) to the U.S. FDA regarding its COVID-19 treatment VYD222. If the EUA gets approved by the FDA, it would likely increase its share price.
Ardelyx (NASDAQ:ARDX) is an oral medication provider that develops and distributes treatments for irritable bowel syndrome, chronic kidney disease, and hyperkalemia. Over the past year, its stock price has more than tripled due to improved earnings results and sales estimates. Ardelyx reported groundbreaking revenue growth that increased by over 11-fold compared to the year before. The jump in sales was primarily due to increased demand for its irritable bowel syndrome treatment, Ibsrela, its first commercialized product. In January, its stock price surged by over 20%, resulting from updated sales estimates for Ibsrela, in which the company expects the total revenue generated through the end of 2023 to be around $80 million and a peak of $1 billion in revenue before the patent expires sometime in 2024.
BridgeBio Pharma (NASDAQ:BBIO) discovers and produces medications for genetic diseases and oncology treatments. The company has seen its stock quadruple in the past 12 months, primarily from positive top-line results regarding its heart drug to treat cardiomyopathy under the name acoramidis. BridgeBio reported that total revenue jumped from 338 thousand in Q3 2022 to over $4 million in Q3 2023. In mid-January, BBIO announced that it entered into a groundbreaking royalty agreement with Blue Owl Capital (NYSE:OWL) in which BridgeBio is seeking $500 million in cash for a 5% royalty in the total sales for acoramidis pending FDA approval, making the deal worth $1.25 billion.
These three biotech stocks have shown promising growth and groundbreaking developments, making them worth considering for investors seeking high growth potential in the biotechnology industry.
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