The biotech industry is pivotal in revolutionizing healthcare through its development of innovative drugs that target critical, unmet medical needs. By pushing the boundaries of scientific discovery and therapeutic innovation, biotech companies are shaping a future where new treatments offer hope and solutions previously unimaginable.
Projections indicate that the global biotechnology market is poised to hit a stunning $5.7 trillion by 2033, demonstrating a compound annual growth rate (CAGR) of almost 14% from 2024 to 2033. Given this optimistic outlook, investors looking to capitalize on this promising industry might want to consider these five affordable “Strong Buy” rated biotech stocks trading under $10, each offering over 100% upside potential to analysts' mean price target.
Biotech Stock #1: ADC Therapeutics
Switzerland-based ADC Therapeutics SA (ADCT) is a global leader at the forefront of antibody-drug conjugates (ADCs), revolutionizing the treatment of hematologic malignancies and solid tumors. Its flagship product, ZYNLONTA, a CD19-directed ADC, has secured accelerated approval from the FDA and conditional approval from the European Commission for treating relapsed or refractory diffuse large B-cell lymphoma.
Beyond ZYNLONTA, ADC Therapeutics boasts a robust pipeline of ADCs in various stages of clinical and preclinical development. Plus, the company recently joined the widely followed Russell 2000 Index (RUT). Its market cap presently stands at $313.7 million.
Shares of ADC Therapeutics have rallied 128.3% on a YTD basis, easily outperforming the broader S&P 500 Index’s ($SPX) 17% return over the same time frame.
Analysts have a consensus rating of “Strong Buy” on ADCT stock, with a mean target price of $10. This indicates an impressive upside potential of about 163.8% from current levels. Out of seven analysts covering the stock, five advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and the remaining one gives a “Hold” rating.
Biotech Stock #2: Rezolute
With a market cap of about $171.7 million, California-based Rezolute, Inc. (RZLT) is a clinical-stage biopharmaceutical company focusing on developing therapies for metabolic diseases driven by chronic glucose imbalances. Its lead candidate, RZ358, a human monoclonal antibody in Phase 2b trials, aims to transform care for congenital hyperinsulinism. The company’s innovative approach extends to RZ402, an oral plasma kallikrein inhibitor targeting diabetic macular edema.
Even after accounting for a pullback of nearly 30% from its June high of $6.10, shares of Rezolute have surged a remarkable 103.8% over the past 52 weeks. In 2024 alone, the stock has rallied a staggering 331%.
Overall, analysts are highly bullish on RZLT stock, with a unanimous “Strong Buy” rating from the seven analysts offering recommendations for the stock. Plus, the mean target price of $10.33 indicates an upside potential of 141.3% from current levels.
Biotech Stock #3: Trevi Therapeutics
Valued at $197.9 million by market cap, Connecticut-based Trevi Therapeutics, Inc. (TRVI) is a dynamic clinical-stage biopharmaceutical company committed to pioneering treatments for severe neurologically mediated conditions. At the forefront of its innovative pipeline is Haduvio (oral nalbuphine ER), targeted for chronic cough in idiopathic pulmonary fibrosis patients and refractory chronic cough (RCC).
RCC impacts up to 10% of adults, and the potential expansion of Haduvio into this realm promises much-needed relief for those grappling with moderate to severe symptoms, marking a pivotal advancement in addressing a pressing treatment gap in the U.S.
On a YTD basis, shares of Trevi Therapeutics have soared 109.7%.
TRVI stock has a consensus "Strong Buy" rating overall. Out of five analysts covering Trevi, four recommend a "Strong Buy," and the remaining one gives a "Moderate Buy" rating. The mean price target of $7.40 implies a potential upside of 163.3% from the current price levels.
Biotech Stock #4: Elevation Oncology
With a market cap of $147.5 million, Elevation Oncology, Inc. (ELEV) is at the forefront of oncology innovation, and is dedicated to discovering and developing targeted therapies for a diverse range of solid tumors with pressing unmet needs. The company specializes in ADCs and focuses on two validated oncology targets, Claudin 18.2 and HER3.
Its star candidate, EO-3021, is a potential breakthrough ADC designed to specifically target Claudin 18.2, and is currently undergoing evaluation in a Phase 1 trial for advanced solid tumors. Looking forward, Elevation Oncology anticipates selecting a development candidate for its HER3-targeting program in 2024, reinforcing its commitment to advancing transformative treatments for patients worldwide.
ELEV stock has skyrocketed in 2024, boasting an impressive 402.8% surge on a YTD basis.
Analysts are highly optimistic about ELEV stock, unanimously rating it as a "Strong Buy" based on recommendations from all seven analysts. The mean price target of $8.17 implies a potential upside of 209.5% from the current price levels.
Biotech Stock #5: Cardiol Therapeutics
Headquartered in Oakville, Canada, Cardiol Therapeutics Inc. (CRDL) is pioneering clinical-stage therapies aimed at revolutionizing heart disease treatment. Its lead candidate, CardiolRx (cannabidiol) oral solution, targets inflammation and fibrosis associated with myocarditis, pericarditis, and heart failure by inhibiting the inflammasome pathway.
Plus, its novel CRD-38 subcutaneous formulation aims to tackle heart failure, a major contributor to healthcare costs, underscoring Cardiol's commitment to advancing cardiovascular care.
Valued at a market cap of around $143.5 million, shares of Cardiol have climbed an impressive 146.7% on a YTD basis.
Analysts have a consensus rating of “Strong Buy” on CRDL stock, with a mean target price of $9.50. This indicates a whopping 356.7% upside potential from current levels. Out of four analysts covering the stock, three advise a “Strong Buy” rating, and the remaining one gives a “Moderate Buy” rating.
On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
