It’s Time to Get Bullish on Biotech Again

Keep an eye on biotech stocks.

According to analysts at Evercore ISI, “After 3 years of painful underperformance, winter is finally thawing and spring just might be in the air,” as quoted by CNBC.

Driving interest in biotech has been new innovation, including the latest obesity treatments, millions of retiring baby boomers, demand for better care, pharmaceutical companies nearing patent expirations, a resurgence of mergers and acquisitions, and even gene-editing.

At the moment, some of the top biotech stocks to watch are involved with obesity.

Look at Viking Therapeutics (VKTX), for example.

Interest in weight loss medications is through the roof. In fact, according to Goldman Sachs, at current pace the market could be worth about $100 billion by 2030.

With Viking Therapeutics, the company is seeing good success with its GLP-1 obesity drug trials. It already reported that its Phase 2 VENTURE trial successfully achieved is primary endpoint and all secondary endpoints. It also said patients receiving VK-2735 demonstrated weight loss after 13 weeks, rating up to 14.7% from baseline weight.

Better, VKTX is about to start Phase 2 trials of its once-a-day weight loss pill. Viking said patients who received the pill once a day lost up to 5.3% of their weight on average, or up to 3.3% more than those who took a placebo, at 28 days, as noted by CNBC.

Or, look at gene editing stocks, like CRISPR Therapeutics (CRSP), which 

Several weeks ago, the U.S. Federal Drug Administration approved a new gene-editing treatment for sickle cell disease and transfusion-dependent beta-thalassemia, a genetic disorder that prevents the production of hemoglobin in the blood. 

Better, with a pipeline full of other potential treatments for immune-oncology, autoimmune diseases, cardiovascular disease and Type 1 diabetes, the CRSP stock could race higher. 

Just something to think about if you’re looking for biotech opportunities.