Over the past year, two stocks have doubled or more in price, yet market analysts suggest they may still possess further upside potential. These two stocks are clinical-stage biotechnology company Abivax (ABVX) and gene therapy firm Krystal Biotech (KRYS). Although both have significantly outperformed the broader market, positive signals in their respective clinical progress and commercial expansion provide support for their continued trajectory.
First, Abivax’s share price has surged more than 1,500% over the past 12 months, a performance primarily attributable to positive clinical data for its core investigational drug, obefazimod, in the treatment of moderate-to-severe ulcerative colitis. The drug has shown favorable efficacy both as an induction and maintenance therapy. Although initial data from the maintenance trial raised some safety concerns, the company has responded to and resolved these issues. The inflammatory bowel disease market, which includes ulcerative colitis and Crohn’s disease, is substantial and has long been dominated by large pharmaceutical companies, but Abivax is well positioned to carve out a share in this space. Unlike many immunosuppressants that work by weakening the immune system, obefazimod does not increase patients’ risk of infection, and as an oral medication, it offers greater convenience than many subcutaneous injection therapies. Abivax plans to submit a marketing application by the end of 2026 and is also conducting a Phase 2 clinical trial of the drug for Crohn’s disease. Should subsequent data prove positive, the stock could move even higher. Of course, as a small biotech firm, the risks of clinical and regulatory setbacks are ever present, but given obefazimod’s substantial potential, the stock remains attractive.
Second, Krystal Biotech has delivered steady growth driven by its approved product, Vyjuvek. Vyjuvek is the first therapy approved to treat dystrophic epidermolysis bullosa, a rare genetic disorder that leaves patients’ skin extremely fragile and prone to damage from even minor friction. In the first quarter of this year, the company’s revenue, all from this product, reached $116.4 million, a year-over-year increase of 32%; net income was $55.9 million, up 56.5% year over year. In overseas markets, as of the beginning of the year, more than 90 patients in Japan, France, and Germany had received prescriptions for Vyjuvek, while the company’s addressable patient potential in these three markets exceeds 1,300 individuals, implying considerable room for sales and earnings growth. Additionally, Krystal Biotech is developing pipeline products for a variety of other diseases. Though the company is not large, its pipeline is relatively robust, and it is expected to achieve positive clinical and regulatory milestones over the next five years. The stock has risen 167% over the past 12 months, and market observers believe it may not have peaked yet.
In summary, while Abivax and Krystal Biotech have already posted substantial gains, their respective fundamentals still harbor positive factors that could provide further support for their stock prices. Of course, investors should remain mindful of potential risks such as clinical failure, regulatory approvals, market competition, and macroeconomic volatility. Overall, the progress of these two companies within their respective niches warrants continued attention.
