Three Mid-Cap Shares with Potential for Significant Growth in 2025
Investing in mid-cap stocks – companies valued between $2 billion and $10 billion – can yield impressive returns, especially if they're on a growth trajectory. This year, three promising mid-cap healthcare stocks worth considering are Iovance Biotherapeutics (IOVA), CRISPR Therapeutics (CRSP), and Viking Therapeutics (VKTX).
Iovance Biotherapeutics (IOVA)
With a market cap of approximately $2.3 billion, Iovance Biotherapeutics gained momentum in 2024 when the Food and Drug Administration granted accelerated approval for Amtagvi (lifileucel), a cell therapy for unresectable or metastatic melanoma. This breakthrough treatment has the potential to generate around $1 billion in annual sales, though it may take a few years to reach such heights.
Iovance successfully reduced its losses in recent quarters and delivered more positive trial results. This could renew investor interest, sending the stock soaring. Shares of Iovance peaked at $18.33 earlier, falling around 60% since then. Investors hope for new positive news to bring the stock price back up.
CRISPR Therapeutics (CRSP)
This biotech stock, with a market cap of $3.6 billion, has underperformed despite important approvals for its gene therapy treatment, Casgevy, for sickle cell disease and beta thalassemia – two rare blood disorders. A one-time, $2.2 million treatment, Casgevy has significant profit potential for CRISPR and its development partner Vertex Pharmaceuticals.
CRISPR faces financial challenges dependent on insurance coverage for Casgevy. If the company manages to show improved financial results, it could rekindle investor enthusiasm. The recent 37% decline in CRISPR's stock price leaves room for potential gains this year.
Viking Therapeutics (VKTX)
Viking Therapeutics, the most valuable stock on the list with a market cap of $4.7 billion, saw a 116% surge in 2023. Investors are optimistic about its potential weight loss drug, VK2735. An average of 15% weight loss over 13 weeks in phase 2 trials and an oral formulation have investors buzzing about VK2735's future approval and brand-name potential.
Viking could attract acquirers seeking to bolster their weight loss drug portfolios. The company's strong cash position supports its R&D, but much depends on the FDA approval. Considering the massive obesity drug market, any small player could generate substantial returns.
[1] Source: Iovance Biotherapeutics Q4 2023 Financial Report[2] Source: CRISPR Therapeutics Q4 2024 Earnings Release[3] Source: Viking Therapeutics Q4 2024 Earnings Release
- Pursuing investments in megacap stocks like Viking Therapeutics (VKTX), with a market cap of $4.7 billion, can offer diverse opportunities, given their substantial size and potential market reach.
- While some individuals might be hesitant about the risks associated with investing in biotech stocks such as CRISPR Therapeutics (CRSP), its significant profit potential might be enticing, given its one-time, $2.2 million treatment for sickle cell disease and beta thalassemia.
- Financially savvy individuals tend to be cognizant of the returns on investment in mid-cap stocks like Iovance Biotherapeutics (IOVA), which recently exhibited promising growth, particularly after the Food and Drug Administration's approval of Amtagvi for unresectable or metastatic melanoma.
- Managing money wisely can involve diversifying one's portfolio by considering investments in various types of stocks, like those representing promising healthcare companies that have the ability to generate revenue from treatments for conditions like thalassemia, such as CRISPR Therapeutics (CRSP).
