8 Best Biotech Stocks to Buy for 2024 | Investing | U.S. News – U.S News & World Report Money

Biotechnology stocks are among the most high-risk, high-reward stocks in the market. Many biotech companies are working to develop one or even a handful of world-changing drugs to address billion-dollar markets. The fates of these often-volatile stocks are tied closely to study data and approval decisions from the U.S. Food and Drug Administration or other drug regulators.

The biotech group struggled as a whole in 2023, but analysts say the innovation that has always supported the biotech industry is alive and well. Here are eight of the top biotech stocks to buy that Morgan Stanley analysts love:

Regeneron Pharmaceuticals Inc. (REGN)

Regeneron Pharmaceuticals is a biotech company focused on developing therapies to treat metabolic disorders, inflammatory diseases, cancer and respiratory conditions. Regeneron shares took a big hit in June 2023 after the FDA rejected the high-dose formulation of wet age-related macular degeneration drug Eylea, but analyst Terence Flynn says the weakness is a buying opportunity for long-term investors given the company’s best-in-class growth profile and durable Eylea franchise. Flynn says Regeneron still has a growth runway for Duplixent and additional upside from its oncology business. Morgan Stanley has an “overweight” rating and $941 price target for REGN stock, which closed at $917.56 on Jan. 3.

Iqvia Holdings Inc. (IQV)

Iqvia is a clinical research company that provides health care data solutions. Analyst Tejas Savant says Iqvia is a bellwether for contract research organizations, which are companies that provide services to the pharmaceutical, biotech and medical device industries. Savant says the company’s technology assets and clinical expertise make Iqvia a market leader in biopharmaceutical research and development. He says the company’s customer engagement strategy will enhance its technology and analytics solutions business over time, and he predicts that double-digit revenue growth and cost-cutting measures will boost earnings. Morgan Stanley has an “overweight” rating and $225 price target for IQV stock, which closed at $220.01 on Jan. 3.

Argenx is a biotech company developing therapies for autoimmune diseases and cancer. The company’s only approved drug is Vyvgart Hytrulo for the treatment of myasthenia gravis. Argenx shared tanked in December 2023 when the company reported that Vyvgart Hytrulo failed to show a significant benefit in trials for treating autoimmune skin disease pemphigus. The drug also recently failed to demonstrate efficacy in treating thrombocytopenia. Despite the setbacks, analyst Vikram Purohit says Vyvgart still has a significant commercial opportunity in the chronic inflammatory demyelinating polyradiculoneuropathy, or CIDP, market. Morgan Stanley has an “overweight” rating and $510 price target for ARGX stock, which closed at $382.12 on Jan. 3.

Legend Biotech Corp. (LEGN)

Legend Biotech is a biopharmaceutical company developing novel cell therapies to treat cancer and other conditions. The company’s Carvykti is approved for treating adults with relapsed or refractory multiple myeloma, or RRMM. Analyst Jeffrey Hung says Carvykti has had a strong commercial launch, and Legend has opportunities for both sales growth and expansion into earlier lines of treatment. Hung says additional clinical trial data has been encouraging, and he expects a potentially market-moving FDA decision on Carvykti label expansion by April 2024. Morgan Stanley has an “overweight” rating and $85 price target for LEGN stock, which closed at $57.93 on Jan. 3.

BeiGene is a biotechnology company focused on addressing 80% of the world’s cancers. The company’s drugs include cancer treatments Brukinsa, Tevimbra and Partruvix. Hung anticipates significant Brukinsa sales growth in 2024 after the drug’s market share increased from 3% in December 2022 to about 9% in December 2023. He says additional adoption for Brukinsa has been driven by approval for the treatment of chronic lymphocytic leukemia and small lymphocytic lymphoma. He projects Brukinsa sales of $1.8 billion in 2024 as positive data further boosts uptake. Morgan Stanley has an “overweight” rating and $318 price target for BGNE stock, which closed at $181.43 on Jan. 3.

Neurocrine Biosciences Inc. (NBIX)

Neurocrine Biosciences is a commercial-stage biotech company with three drugs already on the market: Ingrezza for tardive dyskinesia and Huntington’s disease chorea, Ongentys as an adjunctive treatment for Parkinson’s disease, and Oriahnn for heavy menstrual bleeding related to uterine fibroids. Neurocrine reported $1.43 billion in Ingrezza net product sales in fiscal 2022 and has exclusivity on the drug through 2038. Hung says Neurocrine plans to produce 20 development candidates over the next five years across a range of modalities via both internal development and external sources. Morgan Stanley has an “overweight” rating and $130 price target for NBIX stock, which closed at $132.73 on Jan. 3.

United Therapeutics Corp. (UTHR)

United Therapeutics is a commercial biopharma company focused on treating pulmonary arterial hypertension. Flynn says sales of key product Tyvaso have exceeded expectations, and Tyvaso sales have accelerated significantly following a 2021 label expansion for the drug that includes treatment of patients with pulmonary hypertension associated with interstitial lung disease. Flynn says Tyvaso still has additional growth catalysts ahead, including the potential to further expand its label into idiopathic pulmonary fibrosis treatment. He says IPF approval could nearly double Tyvaso sales. Morgan Stanley has an “overweight” rating and $314 price target for UTHR stock, which closed at $228.18 on Jan. 3.

Sarepta Therapeutics Inc. (SRPT)

Sarepta Therapeutics is a biopharma company developing gene therapies to treat Duchenne muscular dystrophy, or DMD, and limb-girdle muscular dystrophy, or LGMD. Hung anticipates an FDA decision on a potential label expansion for Sarepta’s Elevidys beyond ambulatory patients ages 4 to 5 into the broader population of DMD patients in the first half of 2024. He says positive FDA feedback, a high unmet need and the significant benefits of secondary endpoints in Elevidys trials all point to likely label expansion, which could be a significant bullish catalyst. Morgan Stanley has an “overweight” rating and $146 price target for SRPT stock, which closed at $93.70 on Jan. 3.