Uncovering Three Potential Giant Stocks in the Making
Titanic creatures like Godzilla and King Kong didn't start out colossal. They grew into their monstrous forms over time, even if their early years were left untold in movies. Similarly, many of today's massive corporations were once modest entities (except for perhaps some spin-offs). Genius investors who spotted their potential early had the chance to rake in huge profits.
Are there still colossal prospects waiting to be discovered? The team at Our Website thinks so, pointing to three stocks: CRISPR Therapeutics (CRSP, -1.79%), Summit Therapeutics (SMMT, 6.40%), and Viking Therapeutics (VKTX, 3.10%). Here's why they believe these stocks have the potential to balloon significantly.
A hidden gem with two approvals in its pocket
*David Jagielski*(CRISPR Therapeutics): If you're on the hunt for stocks with sky-high potential, you might be drawn to high-risk choices without any approved drugs. But CRISPR Therapeutics is different. This stock already has an approved treatment, albeit not yet widely available.
By December 2023, regulators gave the green light to Casgevy, a gene-editing therapy CRISPR has developed alongside Vertex Pharmaceuticals. It was authorised as a treatment for sickle cell disease in patients aged 12 and above. One month later, it was also approved to treat transfusion-dependent beta-thalassemia in the same age group. Casgevy could be a game-changer for patients with these rare blood disorders, as it offers a one-time cure.
CRISPR will reap a 40% share of Casgevy's profits, helping the company potentially break even. Currently, CRISPR boasts over $1.9 billion in cash and marketable securities, ensuring its operations are well-funded. Despite burning through $92.7 million in the past nine months, this substantial cash reserve provides CRISPR with ample runway to expand its operations and develop other treatments in its pipeline.
CRISPR has a meager market cap of just $4 billion, leaving plenty of room for growth as it expands and Casgevy generates revenue. Investing in this healthcare stock now could be a smart long-term move.
Already showing enormous promise
*Keith Speights* (Summit Therapeutics): It's surprisingly common for companies without any products on the market to have billion-dollar market caps. But Summit Therapeutics is no ordinary company.
In January 2023, Summit licensed cancer immunotherapy ivonescimab from Akeso. This move proved to be brilliant in hindsight. Early in the year, Akeso announced ivonescimab outperformed Merck's blockbuster immunotherapy Keytruda in a head-to-head late-stage study targeting non-small cell lung cancer (NSCLC).
Keytruda, Merck's star drug, raked in sales of about $25 billion in 2022. Summit now owns the commercial rights to ivonescimab in the US, Canada, and Europe. If approved, this cancer immunotherapy could be even more powerful than Keytruda.
However, Summit cannot rely on the clinical success of Akeso. The company must conduct its own studies to secure approval in the US and other regions. Fortunately, Summit is actively doing so, with initial results expected from a late-stage study of ivonescimab as a second-line therapy for NSCLC in mid-2025. Summit is also evaluating ivonescimab in another late-stage trial as a first-line treatment for NSCLC.
Despite the challenges, Wall Street predicts Summit's share price may surge more than 40% over the next year. While it's uncertain if this price target will be met, it wouldn't be surprising if it's an overly conservative estimate, assuming positive clinical results are announced next year.
Summit Therapeutics is already showing enormous promise. It seems poised to live up to that promise if ivonescimab secures US regulatory approval.
Opportunity to invest before its value skyrockets
*Prosper Junior Bakiny* (Viking Therapeutics): Weight management is the buzzword in the pharmaceutical industry right now. Major players are dominating the field, but a notable mid-cap biotech, Viking Therapeutics, is aiming to disrupt this market with its lead anti-obesity candidate, VK2735.
VK2735 showed remarkable results in phase 2 trials. It might still be a few years before it gains regulatory approval, but Viking Therapeutics isn't a one-hit wonder. The company is also working on an oral version of VK2735, which could be more convenient for patients than the weekly injections required for the original formulation.
Additionally, Viking Therapeutics has another promising weight-loss candidate in preclinical studies. On top of that, the drugmaker is developing VK2809, an investigational medicine for metabolic dysfunction-associated steatohepatitis, and Viking's VK0214, an investigational therapy for a rare nervous system disease called X-linked adrenoleukodystrophy. Smaller drugmakers often focus on a single drug to avoid spreading resources too thin. However, Viking Therapeutics is taking a different approach.
This mid-cap biotech offers an opportunity to invest before its value skyrockets.
The organization exhibits indicators of a crucial element thriving biotechs should possess: ingenuity. Despite the inherent dangers, there's a possibility that Viking's advanced trials for VK2735 might not yield favorable results. Nevertheless, the company appears more alluring with each passing day. In the next ten years, it could potentially ascend to the elite group of prominent pharmaceutical giants. The window for investment opportunities hasn't closed yet.
The text discusses three potential investment opportunities in the healthcare sector, highlighting their high growth potential. In the context of the original text about monstrous forms and growth, here are two sentences that could be derived:
The investors who recognized the potential of CRISPR Therapeutics early on and invested in its stock before its approval of Casgevy have been able to benefit from its significant growth in value.
Similarly, if the promising late-stage studies for Summit Therapeutics' cancer immunotherapy ivonescimab yield positive results, the company's share price could significantly increase, offering a lucrative investment opportunity for early investors.
