With rapid innovations in biotechnology, companies are developing improved therapies and diagnostic tools addressing rare diseases and improving patient outcomes. Moreover, the use of modern technologies like artificial intelligence (AI) is also transforming the biotech sector.
Amid this backdrop, investors could scoop up shares of fundamentally stable emerging biotech stocks, Veracyte, Inc. (VCYT), Amicus Therapeutics, Inc. (FOLD), and Harmony Biosciences Holdings, Inc. (HRMY) which are pioneering next-gen therapies.
The world is standing at the cusp of a new era of innovation. The induction of breakthrough technologies, widespread access to data, and deeper insights into complex biological systems are revolutionizing how the industry approaches drug discovery.
With a 4% growth in clinical trial volume from 2020 to 2024, the pipeline for novel drugs is growing at a rapid rate.
As the AI-driven drug discovery industry continues to expand, newer pipelines are being discovered in a shorter amount of time, resulting in a more expanded reach for the biotech sector. As of the beginning of 2025, over 3000 drugs have been developed or repurposed using AI, highlighting its far-reaching prospects.
According to a study by Grand View Research, the global biotechnology market is forecasted to reach $3.88 trillion by 2030, growing at a CAGR of 14%. This significant growth showcases the ample investment opportunities present in the sector.
Now, let us dive deep into the fundamentals of three emerging Biotech stocks, starting with #3.
Stock #3: Veracyte, Inc. (VCYT)
VCYT is a diagnostics company that offers Afirma Genomic Sequencing Classifier, Decipher Prostate Biopsy and Radical Prostatectomy, Prosigna Breast Cancer Assay, Percepta Nasal Swab Test and Envisia Genomic Classifier for the diagnosis of various cancers.
On February 5, VCYT announced new data to reinforce the ability of its Decipher Bladder Genomic Subtyping Classifier to improve staging for patients with bladder cancer, based on their tumors’ molecular subtype. The data showcases the company’s Decipher Bladder test’s ability to better identify patients’ ability to benefit from neoadjuvant chemotherapy.
For the fiscal 2024 third quarter that ended September 30, 2024, VCYT’s total revenue increased 28.6% year-over-year to $115.86 million. Its income from operations came in at $12.02 million, compared to a loss from operations of $31.74 million in the previous year’s quarter.
Moreover, the company’s non-GAAP net income and non-GAAP EPS rose 112.2% and 94.1% from the previous year’s quarter to $25.99 million and $0.33, respectively.
Street expects VCYT’s revenue for the fiscal 2024 fourth quarter, which ended in December 2024, to increase 18.8% year-over-year to $116.69 million. Also, the company has surpassed the consensus revenue estimates in all four trailing quarters, which is impressive.
In addition, the company’s revenue for the fiscal 2025 first quarter (ending in March) is expected to increase 14.3% year-over-year to $110.73 million.
VCYT’s stock has surged 31.8% over the past six months and 78.6% over the past nine months, closing the last trading session at $41.11.
The stock’s fundamentals are mirrored in its POWR Ratings. VCYT has an A grade for Growth and a B for Sentiment. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
Within the Biotech industry, VCYT is ranked #41 out of 337 stocks. Click here to access VCYT’s Value, Quality, Momentum, and Stability ratings.
Stock #2: Amicus Therapeutics, Inc. (FOLD)
FOLD is a biotechnology company that focuses on discovering, developing, and delivering medicines for rare diseases. The company’s offerings include Galafold, and Pombiliti + Opfolda, for the treatment of Fabry disease.
On January 12, FOLD reported a total preliminary revenue of $528.5 million for 2024, representing a year-over-year increase of 32%.
For the fiscal 2024 third quarter that ended September 30, 2024, FOLD’s net product revenues increased 36.7% year-over-year to $141.52 million. Its income from operations came in at $21.66 million, compared to a loss from operations of $17.02 million in the previous year’s quarter.
Additionally, non-GAAP net income and non-GAAP net income attributable to common stockholders per common share amounted to $30.79 million and $0.10, compared to a net loss and loss per share of $3.97 million and $0.01 in the previous year’s quarter, respectively.
For the full fiscal 2025, the company expects a 17% to 24% total revenue growth. Additionally, FOLD has also highlighted robust sales of its drug pipeline.
Analysts expect FOLD’s revenue for the fiscal 2024 fourth quarter, which ended in December 2024, to increase 28.5% year-over-year to $147.87 million. The company has surpassed the consensus revenue estimates in three of the four trailing quarters.
Its revenue for the fiscal 2025 first quarter (ending in March) is expected to increase 26.1% year-over-year to $139.24 million.
FOLD’s stock has surged 6% over the past month to close the last trading session at $9.76.
FOLD’s POWR Ratings reflect its sound fundamentals. The stock has an overall rating of B, translating to a Buy in our proprietary rating system.
FOLD has an A grade for Growth and a B for Value. Within the Biotech industry, it is ranked #37 out of 337 stocks.
In addition to the POWR Rating highlighted above, you can check FOLD’s ratings for Sentiment, Stability, Quality, and Momentum here.
Stock #1: Harmony Biosciences Holdings, Inc. (HRMY)
HRMY is a commercial-stage pharmaceutical company, focusing on developing and commercializing therapies for patients with rare and other neurological diseases. It offers WAKIX (pitolisant), for treating narcolepsy and HBS-102.
For the fiscal third quarter that ended September 30, 2024, HRMY’s net product revenue increased 16.1% year-over-year to $186.04 million. Its operating income amounted to $61.71 million.
Moreover, the company’s non-GAAP adjusted net income and non-GAAP adjusted net income per share rose 1.4% and 6.2% from the prior year’s quarter to $59.60 million and $1.03, respectively.
HRMY has revealed robust preliminary, unaudited net product revenues of $201 million for the fourth quarter of fiscal 2024 and $714 million for the full year. It has also highlighted a sharp focus on maximizing its neuroscience pipeline in each of the upcoming quarters, charting a clear course toward sustained growth and a potential $3 billion in future net revenue.
The consensus revenue and EPS estimates of $201.36 million and $0.73 for the fiscal 2024 fourth quarter, which ended in December 2024, reflect a year-over-year increase of 19.6% and 62.4%, respectively. Moreover, the company has surpassed the consensus revenue estimates in all of the four trailing quarters, which is noteworthy.
HRMY’s stock has surged 18.1% over the past three months and 30.5% over the past nine months, ending the last trading session at $38.98.
HRMY’s strong fundamentals are mirrored in its POWR Ratings. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
HRMY has an A grade for Value and Quality. Within the same industry, it is ranked #6 out of 337 stocks.
To access HRMY’s Momentum, Sentiment, Growth, and Stability ratings, click here.
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VCYT shares rose $0.36 (+0.88%) in premarket trading Tuesday. Year-to-date, VCYT has gained 4.72%, versus a 4.46% rise in the benchmark S&P 500 index during the same period.
About the Author: Aritra_Gangopadhyay
Aritra is a financial journalist dedicated to breaking down complex financial topics into simple, actionable insights. Holding a Master’s degree in Economics, he uses his analytical expertise to help investors uncover unique opportunities for long-term success.
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