Investors seeking high returns may want to turn their attention to the healthcare sector, where several stocks have doubled in a short period. Among them, Precigen (PGEN) and Mineralys Therapeutics (MLYS) have each surged more than 100% since late July. Even after such significant gains, Wall Street analysts covering these names see further substantial upside.
From late July through September 5, Precigen’s stock climbed 155%, driven by the FDA’s approval of its first drug. The cell-based immunotherapy, Papipeos, treats recurrent respiratory papillomatosis (RRP), a rare disease that causes tumors in the airways.
It became the first and only therapy approved for an estimated 27,000 RRP patients in the U.S., receiving full approval rather than conditional clearance. In a single-arm trial, 18 out of 35 patients required no tumor-removal surgery for at least 12 months after treatment. Even more encouraging, 15 of those initial responders remained surgery-free after 24 months.
Swayampakula Ramakanth, an analyst at HC Wainwright, reiterated a Buy rating and a $8.50 price target, implying 95% additional upside over the next year.
Over the same period, Mineralys rose 146%, largely thanks to a successful $287.5 million secondary stock offering that will fund development of its lead drug candidate, lorundrostat. Phase III trial data released in August showed that patients taking the aldosterone inhibitor on top of existing treatment saw an average reduction of 16.9 mmHg in systolic blood pressure over six weeks — significantly better than the 7.9 mmHg reduction in the placebo group.
The stock also got a boost after AstraZeneca’s competing drug, baxdrostat, posted weaker 12-week data with only a 15.7 mmHg decrease. Before the secondary offering, BofA analyst Greg Harrison raised his target price to $43, suggesting 24% further upside.
Analysts offered contrasting views on the two companies. While Mineralys now holds $325 million in cash — enough to last through 2027 — its decision to raise equity suggests a lack of confidence in achieving timely drug approval, potentially putting its current $2.7 billion market cap at risk.
In contrast, Precigen, with a $1.3 billion market cap, appears undervalued. Papipeos is already approved and dominates a niche market. Although the target patient population is small, pricing exceeding $200,000 per patient per year could help peak annual sales surpass $1 billion. It’s worth noting that pharmaceutical stocks often trade at no more than 10 times sales.
