The global biotechnology market is projected to surpass $1.55 trillion in 2024 thanks to innovations in gene editing, AI-driven drug discovery, and novel therapeutic approaches. This momentum has been further bolstered by recent pro-business policies introduced by President-elect Donald Trump that are aimed at fostering domestic innovation and reducing barriers for emerging biotech firms.
The Trump administration’s latest proposed initiatives have included expanded tax incentives for research and development, streamlined regulatory frameworks, and increased funding for public-private partnerships in healthcare.
Building on this foundation, analysts at Jefferies have highlighted two emerging companies with the potential to deliver extraordinary returns. These firms – potential “monster” stocks for 2025 – are projected to achieve gains of up to 1,000%, presenting significant opportunities for investors focused on the future of biotechnology.
Metagenomi (MGX)
Metagenomi (MGX) is in the gene-editing niche, targeting diseases such as hemophilia, refractory hypertension, and other cardiovascular conditions.
The stock’s performance in 2024 reflects both its potential and volatility. MGX trades at $3.90 as of Dec. 12, showing significant recent gains. Over the past five days, the stock surged nearly 112% and shares are up 77% over the past month. Over the past six months, however, shares are down 35%.
Despite these fluctuations, MGX’s price-to-sales ratio of 2.86x is below the biotech industry average of 3.75x, suggesting potential undervaluation. With a market capitalization of $147.8 million, Metagenomi is positioned as a promising mid-cap player with room for growth.
Metagenomi reported third-quarter 2024 revenue of $11.5 million — a 6.9% year-over-year decline but above analyst expectations of $10.6 million. Its net loss narrowed to $18.8 million ($0.51 per share) from $19.8 million ($3.33 per share) in Q3 2023, reflecting improved cost management as it advances its pipeline.
Analysts project Q4 revenue at $9.23 million with a loss per share of $0.75. With $274.6 million in cash reserves ensuring operational runway into 2027, Metagenomi is well-positioned to sustain its ambitious R&D efforts while managing financial challenges.
Recent advancements further highlight Metagenomi’s leadership. At the ESGCT Congress in October 2024, the company presented adenine base editors (ABEs) with over 95% genome targetability and no detectable adverse effects. According to the company, these results are promising signs of its ability to target and edit a wide range of genes.
At the AIChE CRISPR Technologies Conference that same month, it showcased its SMART platform’s ability to effectively target tissues beyond the liver. In December, preclinical data for MGX-001 revealed sustained Factor VIII activity for over 16 months in nonhuman primates, positioning it as a potential one-time curative treatment for hemophilia A with an IND filing planned for 2026.
Analyst sentiment remains overwhelmingly positive with a “Strong Buy” consensus and a mean price target of $15.17 — representing upside of approximately 262%. Jefferies has a price target of $21 on shares, representing upside potential of 440%. At the time that price target was issued, Jefferies was calling for upside of 1,035%.
Structure Therapeutics (GPCR)
Structure Therapeutics (GPCR) is making a name for itself in the biotech world with its focus on oral small molecule therapies for chronic metabolic diseases like obesity and Type 2 diabetes.
Despite its strong pipeline, GPCR’s stock performance in 2024 has been mixed. The stock trades at $31.95, reflecting a modest five-day gain of 2.8%. However, it has dropped 13% over the past month and is down 21% year-to-date.
Over the last 52 weeks, GPCR has declined by 43%, highlighting broader challenges faced by early stage biotech stocks. Still, its trailing price-book (P/B) ratio of 2.22x is competitive within the industry, and its market capitalization of $1.96 billion underscores its ability to weather short-term volatility while advancing its clinical programs.
The company reported a Q3 2024 net loss of $34 million, up from $23.9 million in Q3 2023, driven by increased R&D expenses ($32.6 million vs. $17.5 million).
The company’s lead candidate, GSBR-1290, is a GLP-1 receptor agonist currently undergoing a Phase 2b study to evaluate doses up to 120 mg over 36 weeks, with topline results expected in Q4 2025. Additionally, the ACCESS II study will begin dosing higher doses of 180 mg and 240 mg by the end of 2024, marking critical progress toward Phase 3 readiness.
Complementing this is Structure’s amylin receptor agonist program, which aims to develop combination therapies for obesity, with a development candidate expected by year-end. To support these efforts, Structure raised $476 million in Q4 2024 through a public offering.
Analysts project a Q4 loss per share of $0.23, while Structure’s robust cash reserves of $915.3 million are expected to fund operations through at least 2027, ensuring financial stability as it progresses toward key milestones.
Analysts remain highly optimistic about GPCR’s long-term potential, with all 11 covering the stock rating it a “Strong Buy.” The mean price target stands at $87.18, representing upside potential of 170%. A price target of $79 from Jefferies would mark upside of 150%.
Conclusion
Both Metagenomi and Structure Therapeutics stand out as promising players in the biotech sector, each leveraging groundbreaking innovation to address critical medical needs. While MGX focuses on precision gene-editing therapies, GPCR is advancing metabolic treatments with its oral small molecule programs. Despite some stock volatility, their robust pipelines, strong financial positions, and optimistic analyst ratings highlight their long-term potential. These “monster” stocks could deliver significant returns heading into 2025 and beyond.
