The biotech industry is expected to see significant growth in 2024, with the global biotechnology market projected to reach USD 4.25 trillion by 2033. The U.S. market is also expected to increase at a CAGR of 11.90% to reach USD 763.82 billion by 2033. Despite the risks associated with mergers and acquisitions, the healthcare industry, particularly biotech, is anticipated to be profitable.
Biotech equities such as Vincerx Pharma, Corbus Pharmaceuticals, and Viking Therapeutics have seen significant gains in 2024, with returns ranging from 134% to 446%. Positive weight loss drug trial findings have contributed to the success of companies like Viking Therapeutics.
Investors interested in biotech stocks should keep an eye on FDA approval news, scientific and clinical risks, and the disease categories that companies are targeting. Healthcare Equity Strategist Jared Holz emphasizes the potential in well-positioned small-cap choices and large-cap biotech equities.
To rank the best biotech penny stocks to buy now, large biotech companies priced under $5 were identified. The top 10 were ranked based on the number of hedge fund holders in Q1 2024. Vigil Neuroscience, Inc. and Black Diamond Therapeutics, Inc. are among the top biotech penny stocks to consider for investment.
Vigil Neuroscience, Inc. specializes in developing therapeutic agents for neurodegenerative diseases, with a focus on microglia activation. The company’s medication candidates have shown promising results in clinical trials. Analysts have given Vigil Neuroscience a “Strong Buy” rating, with price estimates indicating potential growth.
Black Diamond Therapeutics, Inc. is focused on discovering targeted therapies for cancer patients. The company has 15 hedge fund holders in Q1 2024 and is a promising biotech stock to consider for investment.
Overall, the biotech industry is expected to see growth opportunities in 2024, and investors should consider investing in promising biotech penny stocks for potential returns. The company is a leader in targeting unique oncogenic protein isoforms, with a focus on creating precision medicines for specific cancer types. At the recent 2024 ASCO Annual Meeting, Black Diamond unveiled promising Phase 1 clinical data for BDTX-1535 in glioblastoma patients with recurrent disease.
The medication demonstrated dose-proportionate plasma exposure and an average half-life of 15 hours, supporting daily use. Peak worldwide sales for BDTX-1535 are projected to exceed $1 billion if successful in treating glioblastoma multiforme (GBM) and Tagrisso-resistant non-small cell lung cancer (NSCLC).
Black Diamond Therapeutics, Inc. (NASDAQ:BDTX) has received a Strong Buy rating based on research conducted by five Wall Street analysts in the last three months. With a price target range of high $16.00 to low $11.00, the average target price is $13.50, representing a predicted increase of 187.23% from the current trade price of $4.70. As of Q1 2024, 15 hedge fund holders owned shares of the company, with RA Capital Management holding the largest position.
In Q1 2024, Black Diamond reported a net loss of $18.2 million, down from $20.9 million in the same period in 2023. The basic and diluted net loss per share for Q1 2024 was $0.35, a decrease of 38.6% from Q1 2023. The company’s cash, cash equivalents, and investments decreased to around $115.2 million as of March 31, 2024, from $131.4 million at the end of 2023. Research and development costs decreased to $13.5 million in Q1 2024, mainly due to lower investment in early discovery programs, while overall operational expenses dropped to $20.2 million.
Biomea Fusion, Inc. (NASDAQ:BMEA) is a clinical-stage biopharmaceutical company focused on developing irreversible small molecules for genetically defined cancers and metabolic diseases. Its lead candidate, BMF-219, initially showed promise in treating type 2 and type 1 diabetes but faced setbacks due to drug-induced hepatotoxicity concerns. Despite this, CEO Thomas Butler reaffirmed the medication’s potential and tolerability.
Based on research conducted by nine Wall Street analysts, Biomea Fusion has a moderate buy rating, with an average price target of $20.56, representing a potential increase of 353.86% from the current market price of $4.53. In Q1 2024, 15 hedge fund holders held shares of the company, with Cormorant Asset Management having the largest position.
Savara Inc. (NASDAQ:SVRA) is a biopharmaceutical company focused on developing therapies for rare respiratory diseases. Its main candidate, Molgramostim, has shown positive outcomes in Phase 3 trials for autoimmune pulmonary alveolar proteinosis (aPAP) and received important FDA designations. Despite a net loss of $20.3 million in Q1 2024, the company remains dedicated to addressing unmet medical needs.
Inozyme Pharma, Inc. (NASDAQ:INZY) is emerging as a top player in rare disease therapeutics, specializing in treatments for genetic disorders affecting mineralization in the body. Its lead candidate, INZ-701, has shown promising results in Phase 1/2 trials for ENPP1 Deficiency and has been designated as an orphan medication by regulatory bodies. Inozyme Pharma plans to share more Phase 1/2 trial data for both ENPP1 Deficiency and ABCC6 Deficiency (PXE) at upcoming medical conferences. The company has been rated as a Strong Buy by five Wall Street analysts, with an average 12-month price target of $16.25, indicating a potential rise of 259.51% from the current market price of $4.52. In Q1 2024, Inozyme Pharma reported a net loss of $23.347 million, with total operating expenses increasing to $24.345 million year-over-year, driven by higher research and development costs. The company’s CEO stated that current cash reserves are enough to fund operations into Q4 2024.
Editas Medicine, a clinical-stage biotechnology company focused on gene editing therapies using CRISPR technology, is rated as a Moderate Buy by ten Wall Street analysts, with an average 12-month price target of $11.50, suggesting a potential rise of 142.62% from the current market price of $4.74. In Q1 2024, Editas Medicine reported a net loss of $62.0 million, with R&D expenses increasing to $48.8 million year-over-year. The company held $376.8 million in cash, cash equivalents, and marketable securities as of March 31, 2024.