By Lenny Feder, Financial Newsletter
The biotech sector is one that is truly unique in the investment world, as even small-scale businesses with minimal staff have the potential to skyrocket in value and bring substantial wealth to investors in a short period of time.
The constant stream of new scientific breakthroughs has led to more efficient and effective treatments for serious diseases, which can transform the healthcare landscape on a global scale, as demonstrated during the COVID-19 pandemic.
The potential to make a significant impact on a large population through novel treatments or vaccines is what makes the biotech sector so attractive to investors. Few sectors can offer such promising prospects for exponential growth and significant returns.
As most investors already know, biotech is one of the few market sectors that can generate substantial returns and create outsized fortunes. Therefore, it is crucial to carefully scrutinize biotech stocks with high potential for successful treatments and conduct thorough due diligence before committing to any investments.
To that end, here are 3 biotech stocks poised for significant upside in the months ahead and are worth closer examination by investors:
Top Biotech Stock #1 – Catalyst Therapeutics, Inc. (Nasdaq: CPRX)
Catalyst Therapeutics, Inc. (Nasdaq: CPRX) is a unique biotech that has performed well since the beginning of July 2022.
Catalyst Therapeutics is a commercial-stage biopharmaceutical company focusing on developing and commercializing therapies for people with rare debilitating, chronic neuromuscular, and neurological diseases in the United States.
It offers Firdapse, an amifampridine phosphate tablets for the treatment of patients with lambert-eaton myasthenic syndrome (LEMS); and Ruzurgi for the treatment of pediatric LEMS patients.
The company also develops Firdapse for the treatment of MuSK antibody positive myasthenia gravis, and spinal muscular atrophy type 3, as well as to treat hereditary neuropathy with liability to pressure palsies. It has license agreements with BioMarin Pharmaceutical Inc.; and collaboration and license agreement with Endo Ventures Limited for the development and commercialization of generic Sabril tablets.
There are a number of potential catalysts that could drive growth for the company in the months ahead. These include a possible label expansion of Firdapse as well as its purchase of the U.S. rights to Fycompa, an epilepsy treatment developed by Japan-based Eisai.
Top Biotech Stock #2 – iTeos Therapeutics, Inc. (Nasdaq: ITOS)
iTeos Therapeutics, Inc. (Nasdaq: ITOS) a clinical-stage biopharmaceutical company, engages in the discovery and development of immuno-oncology therapeutics for patients.
iTeos Therapeutics is a cancer-fighting specialist and represents a high-risk, high-reward opportunity for investors.
The company’s product pipeline includes inupadenant, a small molecule antagonist of the adenosine A2AR antagonists that is in Phase 2 clinical trials; and EOS-448, an antagonist of TIGIT or T-cell immunoreceptor with Ig and ITIM domains, which is in Phase 1/2 clinical trial, as well as used to engage the Fc gamma receptor, or Fc?R to activate dendritic cells and macrophages and to promote antibody-dependent cellular cytotoxicity, or ADCC activity.
The company’s balance sheet is a strong one, with $752 million of cash on hand and debt of just $4.5 million. The company’s cash per share of $21.15 is higher than the current share price which is just over $16.
Shares of iTeos Therapeutics have declined over the past several months, meaning this stock – which one analyst recently assigned a price target of $54 to – could now be trading at a significant discount.
Top Biotech Stock #3 – Anavex Life Sciences Corp. (Nasdaq: AVXL)
Anavex Life Sciences Corp. (Nasdaq: AVXL), a clinical stage biopharmaceutical company, engages in the development of drug candidates for the treatment of central nervous system (CNS) diseases.
Its lead drug candidate is ANAVEX 2-73, which is in Phase III clinical trial for the treatment of Alzheimer’s disease; Phase III clinical trial to treat pediatric patients with Rett syndrome; Phase II clinical trial for the treatment of Parkinson’s disease; and preclinical clinical trials to treat epilepsy, infantile spasms, Fragile X syndrome, Angelman syndrome, multiple sclerosis, and tuberous sclerosis complex.
The consensus analyst price target for Anavex is $41.80, which represents an upside of more than 300% from where the stock is right now. While some analysts are less bullish, analysts by and large expect to see Anavex rise in value in the near term.
The company has had very encouraging results so far in potential treatments for Alzheimer’s, Parkinson’s and Rett Syndrome.
An approved Alzheimer’s treatment could generate billions of dollars in revenue for the company, so it’s easy to see why analysts and investors have high hopes for the stock. While regulatory approval is far a certainty – and could take an extended period of time – the company appears to be in good position for high-upside potential.
