Two Potential Growth Stocks Poised for Significant Gains in 2025: Worthy Considerations for Your Investment Roster?
Two Potential Growth Stocks Poised for Significant Gains in 2025: Worthy Considerations for Your Investment Roster?
Venture capitalists seeking stocks with significant growth potential can find a few in the biotech sector. At the moment, two biotech stocks that analysts predict will surge in 2025 are currently attracting attention on Wall Street.
The Food and Drug Administration (FDA) approved CRISPR Therapeutics' (CRSP -0.99%) first treatment in December 2020, and its successful debut could propel the stock higher. Additionally, investment analysts anticipate that Iovance Biotherapeutics (IOVA -1.80%) will experience a meteoric rise in 2025.
Before diving headfirst into these promising price targets, it's essential to keep in mind that financial analysts who set ambitious projections may modify their expectations if anticipated outcomes fail to materialize. Restoring the damage caused by a poorly performing investment to your portfolio can be challenging. However, let's explore some of the reasons these stocks are poised for a takeoff and evaluate if they would be a good fit for your investment portfolio.
The case for CRISPR Therapeutics
CRISPR Therapeutics stock plummeted around 51% from its February peak. Nonetheless, Wall Street analysts who specialize in genetic therapy developers anticipate a recovery. The normalized price expectation for the stock suggests a potential 82% growth over the next 12 months.
After experiencing a dip in November following its third-quarter financials, CRISPR Therapeutics and its collaborator, Vertex Pharmaceuticals, are yet to see significant revenue from its FDA-approved treatment, Casgevy. Casgevy is a one-time therapy for sickle cell disease and beta-thalassemia, which doesn't involve pills or injections; rather, it's an infusion of genetically modified stem cells derived from the patient themselves.
CRISPR and Vertex have yet to record Casgevy sales, but as of mid-October, approximately 40 patients had already initiated the cell collection process. With an estimated list price of around $2.2 million per patient, a small number of treatments can generate a substantial revenue stream.
CRISPR Therapeutics closed Q3 with $1.9 billion in cash and liquid assets, having burned through $320 million during the first nine months of 2024. If Casgevy sales begin to roll in, the company's cash reserve may last for several years.
The upcoming treatment likely to emerge from CRISPR's pipeline is possibly easier to market. Candidate CTX112 is an off-the-shelf therapy for cellular lymphoma that has yielded some promising results in a phase 1/2 trial. Among the 12 patients administered with four ascending doses, six achieved complete remission, and two other patients saw their tumors decrease. Over half of the participants' cancer still showed no signs of progression six months after their initial response.
In comparison to CRISPR's other next-generation cell-based therapies under development, CTX112 is the most advanced in clinical trials. With a bulging cash reserve and anticipated income from a commercial-stage product, this gene therapy specialist's best days may still be on the horizon.
The case for Iovance Biotherapeutics
Shares of Iovance Biotherapeutics have dropped around 55% from their February peak, but analysts who follow the stock forecast a remarkable rebound in 2025. Their consensus price target of $23.77 implies a potential 204% surge over the next 12 months.
In February, Iovance Biotherapeutics won its first drug approval for Amtagvi as a therapy for advanced-stage melanoma. Similar to Casgevy, Amtagvi is an individual patient-specific treatment manufactured in limited batches using each patient's stem cells.
Though it was authorized only for the limited pool of melanoma patients whose cancer had progressed following treatment with immunotherapies such as Keytruda, Amtagvi's debut has been successful. Sales in Q3 reached an annualized rate of $234 million, and they're increasing rapidly. Management forecasts 2025 sales to remain in the range between $450 million and $475 million.
The U.S. launch of Amtagvi is progressing well, but at present, only cancer patients in the U.S. have access to it. The European Medicines Agency is now reviewing the treatment's application and is widely expected to grant approval in the second half of 2025.
In addition to a potential global melanoma market, Amtagvi could become a blockbuster lung cancer therapy. Amtagvi is currently being tested in a phase 2 trial with lung cancer patients, and the anticipated results in 2025 could propel the stock significantly.
Time to invest?
Generally, pharmaceutical stocks tend to trade at mid-single-digit price-to-sales ratios. Considering this metric, Iovance appears to be undervalued. The company's market cap has plummeted to around $2.4 billion, which might seem excessively low.
U.S. Amtagvi sales are projected to reach a range between $450 million and $475 million in 2025, and if this therapy is granted approval in the EU as expected, annual sales could surpass $1 billion within a few years.
Before purchasing shares in Iovance, it's crucial to bear in mind that governments have no concern for corporate stock prices. If your risk tolerance isn't substantial enough to overcome a share price decline if European regulators reject Amtagvi, you may wish to observe this situation from the sidelines.
Although CRISPR Therapeutics might be more popular, the delayed debut of Casgevy and its elevated evaluation make it a much riskier investment compared to Iovance. It might be wise to just keep an eye on this stock rather than including it in your investment portfolio.
Investors looking to diversify their finance portfolio might consider investing in biotech stocks such as CRISPR Therapeutics and Iovance Biotherapeutics. The potential for significant growth in these stocks, as predicted by analysts, could yield substantial returns. CRISPR Therapeutics, with its FDA-approved treatment Casgevy and promising pipeline, could see a rebound in stock price, while Iovance Biotherapeutics, with its recently approved Amtagvi for advanced-stage melanoma and potential approval in the EU, has a strong upside potential. It's essential to consider one's risk tolerance and investment strategy before making any investment decisions.