The biotechnology industry has been experiencing significant growth, driven by emerging trends such as advancements in genomic research, personalized medicine, and innovative biotechnology platforms. These advancements have enabled more precise and targeted treatments, particularly in areas like oncology, rare diseases, and immunotherapies.
Among the key stocks leading the charge in this space are Harmony Biosciences Holdings, Inc. (HRMY), Treda Pharmaceuticals, Inc. (TRDA), and Puma Biotechnology, Inc. (PBYI), each focused on developing breakthrough therapies. So, they could be ideal buys now.
The biotech industry's rapid development is fueled by increased investment in biotech innovation, favorable regulatory environments, strategic collaborations, and growing demand for therapies that address unmet medical needs. Additionally, the aging global population and the rising demand for cutting-edge healthcare solutions are further accelerating growth. Emerging technologies like gene editing, biologics, and immunotherapies continue to play pivotal roles in shaping the future of healthcare.
The global biotechnology market was valued at $1.38 trillion in 2023 and is projected to reach $1.55 trillion in 2024. Over the next decade, the market is expected to grow significantly, reaching around $4.61 trillion by 2034, with a CAGR of 11.5% from 2024 to 2034. This impressive growth reflects the industry's ongoing innovation, regulatory support, and the increasing global demand for novel therapies, particularly in critical areas such as oncology and rare diseases.
Considering these conducive trends, let’s examine the biotech stocks in detail:
Stock #3: Entrada Therapeutics, Inc. (TRDA)
TRDA is a clinical-stage biotechnology company specializing in endosomal escape vehicle (EEV) therapeutics, targeting neuromuscular diseases. Its product pipeline includes treatments for Duchenne muscular dystrophy and myotonic dystrophy type 1, aimed at improving the lives of patients with severe genetic disorders.
During the fiscal third quarter that ended September 30, 2024, TRDA’s collaboration revenue stood at $19.57 million. Its cash, cash equivalents, and marketable securities stood at $449.34 million. Its total assets reached $ 554.59 million, and the company’s total liabilities came in at $132.14 million.
Street expects TRDA’s revenue for the fiscal year (ending December 31, 2024) to increase 44.7% year-over-year to $186.73 million. Its EPS for the same year is expected to be $1.03.
Over the past year, the stock has gained 46.2% to close the last trading session at $19.96. It soared 32.3% year-to-date.
TRDA’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
TRDA has a B grade in Value, Sentiment, and Quality. It is ranked #30 out of 335 stocks in the Biotech industry.
Beyond what we have stated above, we also have given TRDA grades for Growth, Momentum, and Stability. Get all the TRDA’s ratings here.
Stock #2: Harmony Biosciences Holdings, Inc. (HRMY)
HRMY develops and commercializes treatments for rare and neurological diseases in the U.S., including WAKIX for narcolepsy-related daytime sleepiness and HBS-102 targeting melanin-concentrating hormone receptors.
On October 30, 2024, HRMY announced the pricing of an 8 million-share public offering at $31 per share by Marshman Fund Trust II and Valor IV Pharma Holdings, LLC.
In the fiscal third quarter ended September 30, 2024, HRMY’s net product revenue increased 16.1% year-over-year to $186.04 million. Its gross profit was $143.26 million, up 11.9% from the year-ago value. Moreover, its adjusted net income and adjusted net income per share stood at $ 59.60 million and $ 1.03, up 1.4% and 6.2% over the prior-year quarter, respectively.
Analysts expect HRMY’s EPS and revenue for the fourth quarter ending December 31, 2024, to increase 52.2% and 17.9% year-over-year to $0.68 and $198.58 million, respectively. It surpassed the Street revenue estimates in each of the trailing four quarters, which is promising.
The stock climbed 8.1% year-to-date and has returned 11.7% over the past year to close the last trading session at $34.92.
HRMY’s POWR Ratings reflect strong prospects. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
It has an A grade for Value and Quality. It is ranked #14 in the same industry.
To access HRMY’s Growth, Momentum, Stability, and Sentiment ratings, click here.
Stock #1: Puma Biotechnology, Inc. (PBYI)
PBYI develops and commercializes cancer treatments, including NERLYNX for HER2-positive breast cancer and alisertib for various cancers. It partners with companies like Pfizer and Takeda for research, development, and distribution.
On November 20, PBYI launched the ALISCA™-Breast1 Phase II trial to evaluate alisertib with endocrine therapy for HR+/HER2- metastatic breast cancer. The trial will focus on determining the optimal dose, efficacy endpoints, and biomarker correlations with an interim safety and efficacy analysis.
PBYI’s total revenues increased 43.5% year-over-year to $80.50 million in the fiscal third quarter that ended on September 30, 2024. Its income from operations came in at $22.10 million, up 157% from the year-ago value. In addition, the company’s adjusted net income came in at $22.40 million and adjusted net income per share came in at $0.45, up 169.9% and 164.7% over the prior-year quarter, respectively.
Street expects PBYI’s revenue and EPS for the fourth quarter ending December 31, 2024, to $52.50 million and $0.09, respectively.
Shares of PBYI have gained 7.1% over the past month to close the last trading session at $3.16.
PBYI’s bright prospects are apparent in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
It has an A grade for Value and Quality. Within the same industry, it is ranked #12.
Click here to see PBYI’s ratings for Growth, Momentum, Stability, and Sentiment.
What To Do Next?
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HRMY shares were unchanged in premarket trading Thursday. Year-to-date, HRMY has gained 8.11%, versus a 28.95% rise in the benchmark S&P 500 index during the same period.
About the Author: Kritika Sarmah
Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities.
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