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Three Unstoppable Stocks to Buy in April with Your Fist in Your Hand
The "It Factor". Some stocks do. Some don't. But where you find stocks that have the "It Factor", you'll want to buy them.
Three contributors to the Motley Fool believe they have found three stocks that meet the requirements. Here is what they thinkCRISPR Therapeutics (NASDAQ Resonance Symbol: CRSP),come with a gift medication(New York Stock Exchange Stock Code: LLY(math.) andVertex Pharmaceuticals (NASDAQ: VRTX)Reasons why it is an unstoppable stock and worth buying in April.
The Sky's the Limit for Rising Biotech Stocks
Prosper Junior Bakiny (CRISPR Therapeutics):If you were to make a list of notable biotech companies, CRISPR Therapeutics would almost certainly not make it. The gene-editing specialist has only one product on the shelves and a market capitalization of $5.6 billion. However, considering the progress the company has made over the past few years, CRISPR Therapeutics seems to have a lot of upside potential.
CRISPR Therapeutics created Casgevy, a gene-edited treatment for sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT) that has been approved in several countries since late last year. Koon has shrewdly partnered with biotech giant Vertex Pharmaceuticals to develop and market the treatment. While this meant that CRISPR Therapeutics was only able to make Casgevy 40% profits, thanks to this carotte relationship, the company was able to gain regulatory approval in areas that it might not have otherwise ventured into, or might have done so at a much later date.
Smaller biotech companies tend to focus almost exclusively on the more lucrative U.S. market, and Casgevy has received approvals in the U.S., the U.K., the European Union, Saudi Arabia, and Bahrain, and is the first CRISPR-based gene editing therapy on the market. CRISPR Therapeutics' product line includes several other gene editing programs.
CRISPR Therapeutics, Inc. has had a strong year. It is expected that the company will continue to report solid results over the long term.
Lilly is a growth machine that won't stop anytime soon.
David Jagielski (Lilly): Eli Lilly and Company (Eli Lilly) is one of those stocks that seems to be on a roll these days. Although its stock price has risen 1,30% in the past 12 months, it still has a lot of room to rise over the long term. Considering the growth opportunities on the horizon, I wouldn't be surprised to see the stock join the $1 trillion club by the end of the year.
Today, the game in the healthcare industry is weight loss. Companies are working feverishly to bring a drug to market that could be the battle of the future.
Eli Lilly's "Zepbound" is an early hit drug that isn't easy to beat. If you haven't heard of it like you have Ozempic, it's because it was only approved last year. But in clinical trials, the drug's potential is impressive.
Using tiotropium, the active ingredient in Zepbound and Mounjaro (approved for the treatment of diabetes mellitus), patients lost nearly 271 TP3T of weight after making lifestyle changes and taking the medication, and that's only in 84 weeks!on average weight loss, with some patients experiencing even greater weight loss.
With future sales of these drugs peaking at more than $68 billion (according to analysts), Eli Lilly's potential is hard to overestimate. Add to that the potential approval of its early-stage Alzheimer's drug donanumab, and in a few years you might regret not buying this stock at its current price. While a price-to-earnings ratio of 133 times may seem outrageous right now, it's still a bargain considering the potential earnings growth that Eli Lilly and Co. could bring in the future.
A large biotech company with the potential to grow even larger
Keith Speights (Vertex Pharmaceuticals).: The success in treating cystic fibrosis (CF) has helped Vertex become a major biotech company. I expect it will grow even more in the coming years.
Cystic fibrosis should bring some of the expected growth, and Vertex has a monopoly on treating the underlying causes of this rare genetic disease. The company plans to apply for approval of its vanzacaftor triple name this summer. I predict that this drug will be Vertex's biggest CF earner to date.
As Prosper noted above, Vertex and CRISPR Therapeutics have a potential winner in Casgevy for SCD and TDT. Gene editing therapies are Vertex's first major win outside of the CF space, but I don't think it will be the biotech company's last.
Vertex has high hopes for its pain drug VX-548. The company is on track to apply for U.S. approval in mid-2024. VX-548 has great commercial potential because it does not have the addictive and negative side effects of opioids.
I am also optimistic about another late-stage Vertex project, Inaxaplin, which targets APOL1-mediated kidney disease (AMKD), for which there is no approved treatment for the underlying cause. There is currently no approved treatment for the underlying cause of the disease, and with the number of people with AMKD exceeding CF globally, this is another huge potential market for Vertex.
Last but not least, Vertex is evaluating two early-stage cellular therapies that have the potential to cure type 1 diabetes. If these programs are successful, Vertex could become one of the world's top five drugmakers in the next decade.
Should you invest $1,000 in Vertex Pharmaceuticals now?
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David Jagielski does not own any of the stocks mentioned above.Keith Speights has a position in Vertex Pharmaceuticals.Prosper Junior Bakiny has a position in Vertex Pharmaceuticals.The Motley Fool has a recommended position in CRISPR Therapeutics and Vertex Pharmaceuticals.The Motley Fool has a disclosure policy. CRISPR Therapeutics and Vertex Pharmaceuticals.The Motley Fool has a disclosure policy.
Three Unstoppable Stocks to Buy With Your Fist in Your Hands in April was originally published by The Motley Fool.