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3 Beaten-Down Biotech Stocks to Buy for a Turnaround in 2025
ALLOAllogene Therapeutics(ALLO) ZACKS·2024-12-26 19:10

Industry Overview - The biotech sector experienced a volatile performance in 2024, starting positively but facing declines in the second half due to disappointing third-quarter results, guidance cuts, pipeline setbacks, and the appointment of Robert F. Kennedy Jr. as head of Health and Human Services [1] Company Summaries Immunocore Holdings (IMCR) - IMCR is focused on developing TCR bispecific immunotherapies, with Kimmtrak being the first FDA-approved immunotherapy for metastatic uveal melanoma, generating 226millioninsalesinthefirstninemonthsof2024,a32226 million in sales in the first nine months of 2024, a 32% year-over-year increase [3] - Despite strong sales growth, IMCR's stock has dropped 58% year to date due to perceived risks in pipeline development, particularly concerning brenetafusp's efficacy beyond cutaneous melanoma [12] - Analysts expect a significant upside for IMCR in early 2025 with anticipated positive updates on an investigational HIV therapy and ongoing late-stage studies for Kimmtrak [13] Allogene Therapeutics (ALLO) - ALLO is developing allogeneic CAR T therapies for cancer treatment, with a strategic pivot that has delayed the initial market introduction of its lead drug cema-cel to 2027 [6] - The stock has declined 35% year to date, but loss per share estimates for 2025 have improved from 1.45 to 1.34[7][15]−ALLOisalsoexploringCAR−Ttherapiesformultiplemyelomaandrenalcellcarcinoma,withplanstoinitiateastudyforlupusbyearly2025[16]DayOneBiopharmaceuticals(DAWN)−DAWNfocusesontherapiesforpediatriccancer,withitsdrugOjemdabeingtheonlysystemictherapyforpLGGintheU.S.,generatingover1.34 [7][15] - ALLO is also exploring CAR-T therapies for multiple myeloma and renal cell carcinoma, with plans to initiate a study for lupus by early 2025 [16] Day One Biopharmaceuticals (DAWN) - DAWN focuses on therapies for pediatric cancer, with its drug Ojemda being the only systemic therapy for pLGG in the U.S., generating over 28 million in revenue in the first nine months of 2024 [8][17] - The company is conducting a pivotal late-stage study for Ojemda and has two other investigational candidates in its pipeline [9] - DAWN's stock has decreased over 13% year to date, but loss per share estimates for 2025 have improved from 2.03to2.03 to 0.99 [10]