4 Biotech Stocks Most Wall Street Analysts Are Bullish About

Industry Overview - The biotech sector experienced volatility in 2024, starting positively but declining by 10.5% due to a slowdown in collaboration deals despite new drug approvals and increased M&A activity [1] - The continuous demand for innovative medical treatments is expected to keep investor interest in the biotech industry, despite macroeconomic uncertainties [2] M&A Activity - M&A activity is anticipated to accelerate in 2025 due to a change in administration and expected deregulation, with major pharma and biotech companies looking to enhance their product portfolios [3] - Companies focusing on oncology, immunooncology, obesity drugs, and gene-editing are likely to attract attention, benefiting smaller biotech firms with promising candidates [3] Company Highlights Sarepta Therapeutics (SRPT) - Sarepta's portfolio was significantly enhanced by the FDA approval of Elevidys, the first gene therapy for Duchenne muscular dystrophy (DMD), which has shown blockbuster potential [5] - The company is developing additional gene therapy programs and plans to submit a regulatory filing for its LGMD candidate in mid-2025 [6] - Sarepta's shares surged 24.7% in 2024, with a current average target price of $184.15, indicating a potential upside of 46.43$25, representing an upside of 34.19% [12] Exelixis (EXEL) - Exelixis has performed well due to its lead drug, Cabometyx, which is a leading treatment for renal cell carcinoma [13] - The FDA accepted a supplemental new drug application for Cabometyx, with a target action date of April 3, 2025, which could enhance growth prospects [14] - Shares have increased by 40.3% in 2024, with EPS estimates rising for 2024 and 2025 [16] Alnylam Pharmaceuticals (ALNY) - Alnylam's marketed drugs, including Amvuttra, are performing well, with efforts to expand Amvuttra's label to boost sales [17] - The company has collaborations with major firms to advance its pipeline, which includes promising candidates like cemdisiran and mivelsiran [18] - Alnylam's shares have surged 24.3% year to date, with a current average target price of $296.32, indicating a potential upside of 24.55% [19]