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Wall Street Favorites: 3 Biotech Stocks with Strong Buy Ratings for May 2024 

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With innovation, millions of retiring baby boomers, demand for better care, patent cliffs, gene-editing, massive interest in weight-loss treatments, and an increase in mergers, biotech stocks to buy have a good deal of upside ahead.

Look at weight loss stocks, like Viking Therapeutics (NASDAQ:VKTX), for example. Since December, the stock ran from about $12 a share to a recent high of $78.03. All on excitement for its injectable and oral treatments for weight loss, both of which are still in trials.

Look at CRISPR Therapeutics (NASDAQ:CRSP), which ran from about $40 to $90. All thanks to the U.S. FDA’s approval of its treatment for sickle cell disease. Biogen (NASDAQ:BIIB) exploded from a low of about $190 to a recent high of $235.44. All after the U.S. FDA gave its Eisai (OTCMKTS:ESAIY)-partnered Alzheimer’s treatment a fast-track designation, as noted by Investors’ Business Daily.

Even better, there are even more exciting biotech stocks to buy just like these. Here are three you may want to consider today.

Prime Medicine (PRME)

An image of a scientist holding forceps, taking a piece of a DNA helix

Source: Panuwach/Shutterstock

Prime Medicine (NASDAQ:PRME) is using prime editing to attack defective genes.

According to BiopharmaDive.com, the company “adapts CRISPR technology to rewrite defective genes without breaking both strands of the DNA double helix. It’s sometimes likened to a kind of genetic ‘word processor,’ rather than the ‘scissors’ analogy often used to describe standard CRISPR editing.”

Helping, the U.S. FDA just cleared the company’s first clinical trial for the treatment of chronic granulomatous disease. Even more impressive, Alphabet (NASDAQ:GOOG) just bought another 3.2 million shares of Prime Medicine. That now raises its stake to 15.1 million shares. 

Aside from Alphabet, other top shareholders include Cathie Wood’s ARK Invest, Jim Simons’ Renaissance Technologies Israel Englander’s Millennium Management.

The company is also working on treatments for liver diseases, such as Wilson’s Disease, Glycogen Storage Disease 1b. They are addressing lung issues, such as cystic fibrosis and ocular issues such as retinitis pigmentosa and rhodopsin. Additionally, Prime Medicine is looking at neurological issues such as Friedreich’s Ataxia, and muscular issues, such as myotonic dystrophy Type 1. 

Altimmune (ALT)

A variety of pills, pill bottles, and droppers arranged on a table in multiple bright colors.

Source: Shutterstock

The last time I mentioned Altimmune (NASDAQ:ALT), it traded at around $8 on April 11. It’s another one of the top biotech stocks to buy now.

At the time I noted, “It’s still a strong, long-term opportunity. Citing data from its MOMENTUM trial, the company said its pemvidutide treatment led to weight loss while preserving lean mass, as noted by Seeking Alpha.” Today, the stock is up to $8.87 and just starting to pivot higher.

Helping, the company just reported further progress with its pemvidutide trials.

In May, the company saw “notable advancements in its pemvidutide program for obesity and nonalcoholic steatohepatitis (NASH) during the first quarter 2024 earnings call. The company highlighted significant weight loss results from the Phase 2 MOMENTUM trial and plans to discuss Phase 3 guidance with the FDA in Q3 2024,” as noted by Investing.com.

The Phase 2 MOMENTUM trial of pemvidutide resulted in significant weight loss, 74.5% of which was body fat.

Atossa Genetics (ATOS)

a scientist with protective equipment and microscope in a lab, OBSV stock

Source: luchschenF / Shutterstock.com

The first time I mentioned Atossa Genetics (NASDAQ:ATOS), it traded at 75 cents on April 4, 2023. It’s now up to $1.61 and could potentially retest its high of about $2.30 near term. 

Recently, the company posted solid data from a Phase 2 study of its drug (Z)-endoxifen as a neoadjuvant treatment for breast cancer. It’s being tested as a treatment for “premenopausal women with Grade 1 or 2 ER+/HER2- breast cancer,” as noted by Seeking Alpha

“The 40mg EVANGELINE data is extremely encouraging as it shows that (Z)-endoxifen can not only stop ER+ breast cancer from growing, but it can also shrink or eliminate the tumor, as measured by MRI imaging,” said Dr. Steven Quay, Atossa’s President and Chief Executive Officer in a recent press release.

Better, analysts at Maxim Group reiterated a buy rating on the ATOS stock, with a price target of $4. The firm is especially encouraged by the “progress of Atossa’s Endoxifen programs, which are showing potential as effective treatments for various breast cancer indications,” as noted by TipRanks.com.

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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