The biotech market is experiencing robust growth, fueled by demand for better treatment, personalized medicines, and an increasing number of orphan drug formulations. Further, cutting-edge technology, like AI and supportive government initiatives, are opening wider opportunities for the market.
Given the industry’s shiny prospects, investors could consider watching fundamentally sound biotech stocks MannKind Corporation (MNKD), Amicus Therapeutics, Inc. (FOLD), and Esperion Therapeutics, Inc. (ESPR).
Biotech is revolutionizing the face of the healthcare segment with the introduction of new therapies, vaccines, and processes targeting new and rare diseases and conditions. Supportive initiatives by the governments and the adoption of the latest technologies are further contributing to the advancements in the segment.
In this year alone, the U.S. Food and Drug Administration (FDA) has approved 46 new drugs for conditions such as lung cancer, refractory acute leukemia, breast cancer, schizophrenia, and more. These breakthroughs will help in treating numerous patients and position the sector for even more growth.
Also, with the ongoing advancements in science and technology, more breakthrough innovations are anticipated in the coming times. Amid this, a vast majority of global life sciences executives appear optimistic about the prospects of the market in 2025.
The global biotechnology market is projected to grow at a CAGR of 14%, resulting in a market volume of $3.88 trillion by 2030. Currently, the market is driven by efforts towards modernization of regulatory framework, demand for personalized medicine, an increasing number of orphan drug formulations, and emerging innovative technologies.
Also, in 2024, artificial intelligence (AI) continued to strengthen its position in the biotech industry, equipping the segment with rapid drug discovery, enhanced accuracy, customized drug design, and expanded data availability. Cutting-edge technology is accelerating the development process and helping design novel molecules.
Therefore, high-growth biotech stocks present promising opportunities for investors in the long term. In light of these encouraging trends, let’s look at the fundamentals of the three high-growth Biotech stocks, starting with number 3.
Stock #3: MannKind Corporation (MNKD)
MNKD is a biopharmaceutical company that focuses on the development and commercialization of inhaled therapeutic products for endocrine and orphan lung diseases. It offers Afrezza and the V-Go wearable insulin delivery device.
On December 11, MNKD and Cipla Ltd. announced that India's Central Drugs Standard Control Organisation (CDSCO) approved its Afrezza (insulin human) Inhalation Powder in adults. The decision followed the existing approvals in the United States and Brazil. MNKD will supply Afrezza to Cipla, and Cipla will distribute Afrezza in India and undertake its marketing and sales activities.
On September 18, MNKD received clearance from Japan's Pharmaceuticals and Medical Devices Agency (PMDA) to initiate the Phase 3 study (ICoN-1) of Clofazimine Inhalation Suspension for treating NTM lung disease. The approval will allow MMNKD to develop a potential therapy for those living with serious NTM lung infections and help them further.
For the third quarter that ended September 30, 2024, MNKD’s total revenues rose 36.7% year-over-year to $70.08 million. The company’s income from operations of $12.76 million indicates growth of 150.3% from the prior year’s quarter. Its non-GAAP adjusted net income came in at $15.35 million and $0.06 per share, up 260.7% and 200% year-over-year, respectively.
Analysts expect MNKD’s revenue for the fourth quarter (ending December 2024) to grow 28.1% year-over-year to $74.88 million, and its EPS is expected to increase 539.5% year-over-year to $0.03 for the same period. Moreover, the company has surpassed the consensus revenue and EPS estimates in three of the trailing four quarters.
Over the past six months, the stock has surged 24.3% and 59.3% over the past year to close the last trading session at $5.94.
MNKD’s bright prospects are reflected in its POWR Ratings. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
MNKD has a B grade for Growth and Quality. It is ranked #28 out of 331 stocks in the Biotech industry.
To check other POWR Ratings of MNKD for Value, Momentum, Stability, and Sentiment, click here.
Stock #2: Amicus Therapeutics, Inc. (FOLD)
FOLD is a biotechnology company focused on discovering, developing, and delivering medicines for rare diseases. Its commercial product and product candidates include Galafold and Pombiliti + Opfolda.
In terms of trailing-12-month gross profit margin, FOLD’s 89.99% is 54.2% higher than the industry average of 58.37%. Similarly, the stock’s trailing-12-month EBIT margin of 2.92% is 14.5% higher than the industry average of 2.55%. Further, its trailing-12-month asset turnover ratio of 0.64x is 52.9% higher than the industry average of 0.42x.
During the third quarter that ended September 30, 2024, FOLD’s net product revenues rose 36.7% year-over-year to $141.52 million. The company's gross profit grew 37.1% from the year-ago value to $128.24 million. Also, the company’s non-GAAP net income amounted to $30.79 million or $0.10 per common share for the quarter, respectively.
Analysts expect FOLD’s revenue for the first quarter (ending March 2025) to increase 28.6% year-over-year to $142 million. For the fiscal year 2024, the company’s revenue is expected to grow 31.7% year-over-year to $525.98 million. Also, the company topped the consensus revenue estimates in three of the trailing four quarters.
Shares of FOLD have plunged marginally over the past month to close the last trading session at $9.57.
FOLD’s POWR Ratings reflect its robust outlook. FOLD has an A grade for Growth. It also has a B grade for Value. It is ranked #44 among 331 stocks within the Biotech industry.
To see the other ratings of FOLD for Quality, Sentiment, Momentum, and Stability, click here.
Stock #1: Esperion Therapeutics, Inc. (ESPR)
ESPR is a pharmaceutical company that emphasizes developing and commercializing medicines for treating patients with elevated low-density lipoprotein cholesterol (LDL-C). Its marketed products include NEXLETOL (bempedoic acid) and NEXLIZET (bempedoic acid and ezetimibe) tablets.
On December 12, ESPR entered into a licensing agreement with Neopharm Israel for the exclusive rights to commercialize NEXLETOL® (bempedoic acid) and NEXLIZET® (bempedoic acid and ezetimibe) in Israel. Under the agreement, Esperion will receive upfront and near-term milestone payments and tiered royalties on sales of NEXLETOL/NEXLIZET in Israel.
During the third quarter that ended September 30, 2024, ESPR’s total revenues increased 52% year-over-year to $51.63 million, of which its collaboration revenue came in at $20.53 million, up 49.6% from the prior year’s quarter. In addition, the company’s cash and cash equivalents were $144.72 million as of September 30, 2024, compared to $82.25 million as of December 31, 2023.
Street expects ESPR’s revenue for the fourth quarter (ending December 2024) to increase 92.7% year-over-year to $62.14 million. Similarly, for the fiscal year 2024, the company’s revenue is expected to grow 181.2% year-over-year to $327.16 million. Furthermore, ESPR has surpassed the consensus revenue and EPS estimates in three of the trailing four quarters.
ESPR’s stock has gained 2.1% over the past month and 2.4% over the past year to close the last trading session at $2.16.
ESPR’s sound fundamentals are reflected in its POWR Ratings. The stock has a B grade for Growth, Value, and Quality. Within the same industry, ESPR is ranked #42 among the 331 stocks.
Click here to access additional ratings of ESPR for Stability, Sentiment, and Momentum.
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FOLD shares were trading at $9.80 per share on Thursday afternoon, up $0.23 (+2.40%). Year-to-date, FOLD has declined -30.94%, versus a 25.17% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari Saxena
Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.
3 High-Growth Biotech Stocks to Watch StockNews.com
