| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
| $110.83 | 137.86B | 4.76 | 2.87% | Healthcare | 18,000 | 3 hours ago | |||
 Alkermes plc ALKS | $29.42 | 4.85B | 2.07 | 0.00% | Healthcare | 2,100 | 3 hours ago | ||
 Novavax, Inc. NVAX | $7.03 | 1.14B | 2.75 | 0.00% | Healthcare | 1,543 | 3 hours ago |
Biopharmaceutical stocks have been on a tear so far this year. Many key companies on the medicinal frontier have rewarded shareholders handsomely for their faith and favor—though a few of those hot stocks still have the legs to run further. Biopharma is a high-stakes, high-reward sector that thrives on innovation and the promise of groundbreaking treatments. However, potential investors must remain acutely aware of the inherent risks, as only a fraction of drugs that enter clinical trials ever make it to market. With that said, let’s dive into three biopharma runners that still have significant fuel left in the tank.
Editor's Note: Analysis and insight for this article were originally sourced from our friends at InvestorPlace
Entering the large-cap realm with a staggering market cap of $86.8 billion, Gilead Sciences (GILD) is a frontrunner in the biopharmaceutical sector, consistently delivering impressive results and promising potential.
Gilead recently set the biopharma world abuzz when it reported positive results from a Phase 2 study on idelalisib for chronic lymphocytic leukemia (CLL). The study boasted a phenomenal 97% response rate, pushing GILD shares to new all-time highs. The prognosis for patients who participated was especially promising, with 93% surviving progression-free at the end of two years.
In addition to its success with idelalisib, Gilead is making strides with its oral hepatitis C drug, sofosbuvir, now under formal review by the European Medicines Agency and the FDA. Should sofosbuvir gain approval, it has the potential to revolutionize hepatitis C treatment and significantly boost Gilead’s earnings. Gilead’s HIV drug portfolio, featuring the noteworthy Stribild regimen, further solidifies its position as a leader in infectious disease management.
Financially, Gilead’s metrics instill confidence. The company’s shares have more than doubled over the past year, supported by a forward P/E ratio of 19.5 and a PEG ratio of 1.1. These numbers indicate that despite significant gains, Gilead still holds substantial growth potential, making it a smart bet for investors who can handle some risk for potentially high rewards.
Analyst Ratings for Gilead Sciences (GILD)
| Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
|---|---|---|---|---|
| Hold | $77.55 | $69.96 | 10.85% | 57 |
Analyst Outlook Summary
Analysts have a moderate buy rating for Gilead Sciences (GILD). This consensus is based on 57 ratings, including 32 buy ratings, 25 hold ratings, and 0 sell ratings. The average price target is $77.55, which represents a potential gain of 10.85% from the current price of $69.96. Some analysts have higher price targets, such as $105.00, while the lowest forecast is $1.00.
Sources:
- Gilead Sciences (GILD) Stock Forecast & Price Target – Tipranks
- Gilead Sciences Inc. Research & Ratings | GILD – Barron’s
- GILD | Gilead Sciences Inc. Analyst Estimates & Rating – WSJ
- Gilead Sciences, Inc. Common Stock (GILD) Analyst Research
- Gilead Sciences (GILD) Price Targets – Zacks
Shifting our gaze to the mid-cap segment, Alkermes (ALKS) stands out with a market cap of $4.3 billion. Its impressive product portfolio and innovative approach to treating complex conditions position it as a compelling investment opportunity.
Alkermes boasts an array of 20 commercial products across critical disease areas, including multiple sclerosis, schizophrenia, narcotic and alcohol dependence, and type 2 diabetes. Key drugs like 5461, which targets opioid receptors to manage symptoms of major depression, and 3831, aimed at treating schizophrenia while mitigating traditional side effects like weight gain, highlight Alkermes’ cutting-edge approach to medicine. The anticipated presentation of clinical data on these drugs at the 53rd Annual New Clinical Drug Evaluation Unit meeting is eagerly awaited by investors.
Despite its higher valuation, reflected in a forward P/E of 28, Alkermes’ fundamentals remain strong. The company boasts a solid balance sheet with $209 million in cash against $370 million in debt, and a decent year-over-year revenue growth of about 8%. Most strikingly, Alkermes has a PEG ratio of 0.37, suggesting strong growth prospects that further enhance its appeal.
Alkermes’ innovative focus on opioid receptors could unlock treatments for conditions like obesity, making it an exciting, albeit risky, play. Investors might consider waiting until after the upcoming clinical data presentation to dive in for optimal timing and reduced risk.
Analyst Ratings for Alkermes (ALKS)
| Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
|---|---|---|---|---|
| Moderate Buy | $35.00 | $23.57 | 48.49% | 12 |
Summary of Analyst Outlook
Analysts provide a moderate buy rating for Alkermes (ALKS) based on 12 ratings. The average price target is $35.00, indicating a potential gain of 48.49% from the current price of $23.57. The ratings consist of high anticipation concerning Alkermes’ novel approaches to treating complex conditions.
Sources:
For those with a penchant for small-cap, high-risk, high-reward investments, Novavax (NVAX) offers an intriguing opportunity. With a market cap of $305.4 million, Novavax is pioneering new frontiers in vaccine development.
Unlike traditional vaccine approaches, Novavax leverages recombinant DNA technology to create tailored vaccines rapidly. This innovative method allows it to potentially bring vaccines to market in mere weeks—a capability that becomes invaluable during health crises. Novavax is currently developing vaccines for the H5N1 influenza strain and respiratory syncytial virus (RSV). Its strategic contracts with agencies like the U.S. Office of Biomedical Advanced Research and Development Authority and the Department of Homeland Security further underscore its prominence.
Recently, market speculation about Novavax developing a vaccine for the deadly H7N9 influenza strain has fueled investor excitement. Trading at around $2 per share and having gained 79% over the past year, driven primarily by advancements in clinical trials, Novavax is a quintessential high-risk, high-reward play.
Make no mistake; Novavax’s bleeding-edge approach involves considerable risk. However, the potential payoff for hitting a successful pandemic vaccine could be astronomical. Investors with a bit of mad money and a penchant for speculative plays will find Novavax a thrilling ride in the fast-paced biopharma sector.
Analyst Ratings for Novavax (NVAX)
| Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
|---|---|---|---|---|
| Hold | $19.33 | $11.82 | 47.44% | 5 |
Summary of Analyst Outlook
Consensus Ratings and Price Targets:
- Nasdaq: The average price target is $22.80 with a range of $10.00 to $38.00. The analysts forecast an increase of 75.93% from the last closing price of $12.96.
- Benzinga: The consensus price target is $54.43 with a high of $168 issued by Cantor Fitzgerald. The average of the most recent analyst ratings is $22 with a potential gain of 86.07% from the current trading price of $11.82.
- TipRanks: The average price target is $19.33 with forecasts ranging from $10.00 to $29.00. The potential gain is 47.44% from the current price of $13.11.
Recent Analyst Ratings:
- B. Riley Securities: Maintained a Strong Buy with a price target of $29.
- HC Wainwright & Co.: Reiterates a Buy with a price target of $19.
- B of A Securities: Maintained a Neutral rating with a price target of $18.
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