3 Biotech Stocks That Could Be Multibaggers in the Making: July Edition

Core Insights - The biotech sector is characterized by high dependency on FDA drug approvals and patent protections, making stock predictions challenging [1] - The sector requires substantial investment in R&D, necessitating high cash reserves and aggressive borrowing [1] Company Summaries Moderna (MRNA) - Moderna is developing vaccines for bird flu, receiving $176 million from the U.S. government for this initiative due to rising concerns over the H5N1 virus [3] - The stock has seen a decline of nearly 10% from the previous month and is currently at about a quarter of its peak price of $449.38 from Q3 2021, with a trailing price-to-earnings ratio of 7.06x, significantly lower than the industry average [16][11] Halozyme Therapeutics (HALO) - Halozyme reported a 21% increase in annual revenue in Q1, driven by a 21% growth in royalty revenue [5] - The company's adjusted EBITDA is projected to grow from $426 million in 2023 to between $535 million and $585 million in 2024, indicating a year-over-year increase of 26% to 37% [5] - Halozyme has secured a new patent for its Enhanze drug delivery technology across 37 European countries [13] Viking Therapeutics (VKTX) - Viking Therapeutics ended Q1 with $963 million in cash and short-term investments, a significant increase from $362 million in December 2023 [7] - The company is developing VK2735, an oral tablet for obesity treatment, which has shown safety and efficacy in early trials, helping patients lose an average of 3.3% of body weight [19] - VK2735 is currently in Phase 1 clinical trials, with a Phase 2 trial expected later this year [19] Industry Overview - The biotech sector is projected to have a Compounding Annual Growth Rate (CAGR) of 14% from 2023 to 2032 [9] - When invested correctly, biotech stocks have the potential to yield significant returns for investors [10]