Title: Top 2 Biotech Stocks to Invest in this December
Biotech in 2024 has lagged behind the broader market, with the SPDR S&P Biotech ETF climbing only 9% compared to the S&P 500's 28% rise. But that doesn't mean there aren't solid long-term picks in the industry. Two such stocks are CRISPR Therapeutics and Exelixis.
Let's begin with CRISPR Therapeutics. The genome-editing specialist made its mark with Casgevy, the first approved medicine to use the CRISPR technique. Despite being the first approved medicine, CRISPR Therapeutics' shares have underperformed since November 2023 when Casgevy got its approval. The company is still unprofitable, which has put off some investors.
However, Casgevy has massive potential. It treats transfusion-dependent beta-thalassemia (TDT) and sickle cell disease (SCD), two rare blood-related disorders with few treatment options. CRISPR Therapeutics has little competition in the U.S. and virtually none in other regions, opening up a market of around 58,000 patients. If they manage to treat 20,000 patients at an average price of $1.5 million, it could be a $30 billion opportunity. And that's before considering label expansions.
Despite Casgevy's slow uptake, CRISPR Therapeutics is far from desperate. It has a partnership with Vertex Pharmaceuticals, which has boosted its cash reserves to over $1.9 billion. The company also has several exciting phase 1 and phase 2 gene editing candidates in the pipeline.
Now, let's shift our focus to Exelixis. The biotech's boost this year comes from a significant regulatory win that will keep generic competition for its cancer medicine Cabometyx off the market until 2030. Cabometyx has been a star performer for Exelixis, consistently delivering new indications and maintaining its position as the top-prescribed therapy in some markets.
Exelixis is also pushing forward with other cancer therapies. Zanzalintinib, a product with high expectations, is making its way through phase 3 studies. Exelixis also boasts several early-stage programs. Exelixis' shares have soared this year, and with Cabometyx continuing to drive growth and more label expansions on the horizon, there's plenty of upside potential for investors.
As for 2025, it's hard to predict whether the biotech industry will keep up with the broader market or swim against the tide. However, with innovative companies like CRISPR Therapeutics and Exelixis, the future looks promising for the industry.
In light of the industry's current performance, some investors might be hesitant about investing in biotech, but companies like CRISPR Therapeutics and Exelixis offer promising opportunities in the finance sector. CRISPR Therapeutics, despite facing challenges, has a significant market opportunity with Casgevy and a solid financial position due to its partnership with Vertex Pharmaceuticals, making it an attractive investment option in the field of finance and money.
