For investors looking to add growth drivers to their portfolios, beyond focusing on established growth companies that are already generating considerable revenue, seeking out future winners with disruptive potential is also a good option. Based on the expectations of Wall Street analysts, the following two high-profile biotech companies have potential upside of 58% and 200% respectively over the next 12 months.
CRISPR Therapeutics has achieved a significant milestone in recent years: its first gene-editing therapy, Casgevy, was approved for marketing in 2023 for the treatment of blood disorders. This marks the approval of the world’s first therapy based on CRISPR gene-editing technology, powerfully demonstrating the technology’s application potential in the field of disease treatment. CRISPR gene editing works by cutting DNA and utilizing the cell’s natural repair processes to correct defective genes. Because it can repair disease-causing genes, it can serve as a “functional cure” and is expected to be a true industry game-changer.
Looking ahead, the company expects to release clinical trial data covering multiple disease indications within this year, suggesting several potential stock-moving catalysts on the horizon. For example, the company plans to release updates on its candidate drug zugo-cel in the field of autoimmune diseases, as well as trial updates for CTX310 targeting an indication that can lead to heart disease. Notably, CRISPR Therapeutics currently holds a cash reserve of over $1.9 billion, providing solid financial support for the continued advancement of its pipeline. Wall Street analysts expect the stock to have 58% upside over the next 12 months.
Unlike CRISPR, Viking Therapeutics currently does not have any commercialized products, but its drug candidates have entered late-stage clinical trials and are targeting one of the markets with the greatest growth potential in the healthcare sector—the weight loss drug market. The company is developing both injectable and oral formulations of VK2735. The injectable formulation has now entered Phase III clinical trials, and the oral formulation is planned to initiate Phase III studies in the third quarter of this year.
To date, both formulations of VK2735 have shown solid data in trials, aiming to enter the market dominated by GLP-1 drugs in the near future. These drugs work by stimulating hormone pathways related to digestion to regulate blood sugar levels and appetite. Currently, GLP-1 drugs commercialized by Eli Lilly and Novo Nordisk have become popular worldwide, helping people effectively lose weight. Additionally, Viking plans to initiate clinical trials this year for a novel weight loss candidate drug that works by interacting with amylin and calcitonin receptors, which play key roles in metabolism.
According to Wall Street’s average expectations, Viking Therapeutics’ stock price could achieve upside of up to 200% over the next 12 months. Even if this gain takes longer to materialize, it would represent a massive success for early-stage investors.
