In recent years, mountains of institutional capital have flowed into hundreds of biotech start-ups and so many of them have gone public that it’s impossible for anyone with a day job to keep track of them all.
I’ll let you in on a little secret. Those of us whose job it is to know things about the biopharmaceutical industry can’t keep up with all the new players that reach the Nasdaq exchange, either.
If trying to stay on top of all the new biotech stocks that you could buy has you feeling overwhelmed, relax. Most of them aren’t worth the effort. But these three stand out among the ones that continued to climb after the buzz around their initial public offerings faded away. Here’s why.
|Company||Initial Public Offering Date||Stock Price Gain Since IPO||Market Cap|
|Eidos Therapeutics (NASDAQ:EIDX)||6/20/2018||88%||$1.6 billion|
|Turning Point Therapeutics (Nasdaq: TPTX)||4/17/2019||100%||$1.8 billion|
|Stoke Therapeutics (NASDAQ:STOK)||6/19/2019||36%||$1.2 billion|
1. Eidos Therapeutics: Part of something much larger
Eidos Therapeutics has taken off since its IPO thanks to mid-stage clinical trial results that show its lead candidate, AG10 is really good at holding together a vital transport protein, called transthyretin (TTR). A drug like AG10 could make a big difference for an estimated 400,000 people around the world currently experiencing a painful, fatal buildup of TTR fragments in their hearts.
Nearly two-thirds of Eidos is owned by BridgeBio (NASDAQ:BBIO), and its former parent would like to repurchase all the Eidos shares that it doesn’t own, in exchange for 1.3 BridgeBio shares. BridgeBio doesn’t intend to develop drugs itself. Instead, it supports fledgling start-ups, like Eidos. Since its inception in 2015, BridgeBio has assembled subsidiaries with 15 active rare-disease programs, four of which are already in pivotal trials.
If AG10 puts up results good enough to contend with the first Food and Drug Administration-approved TTR stabilizer, a drug called Vydaqel from Pfizer (NYSE:PFE), shares of Eidos, and BridgeBio will continue to soar.
2. Turning Point Therapeutics: Buyout target
This has been a terrific year for developers of small-molecule cancer drugs, largely because biopharma companies with deep pockets keep buying them at a premium. Turning Point Therapeutics has doubled in its first few months because the company’s already moved its lead candidate, repotrectinib, into a registrational study that could make it a new treatment option for people with ROS1 positive non-small cell lung cancer, or NTRK positive solid tumors regardless of where they originated.
Repotrectinib is a kinase inhibitor designed to address acquired treatment resistance problems common among this class of treatment and it appears to work as advertised. Earlier this year, Turning Point presented results from the dose determination portion of an ongoing registrational trial that showed at 16 months, repotrectinib shrank ROS1 positive tumors for 83% of patients that hadn’t tried a kinase inhibitor before and 39% of those with previous kinase inhibitor experience.
The early results are worthy of attention, but they’re a little hard to interpret because there were seven different dosages tested. In late September, the company will present more results from its ongoing repotrectinib study. If they don’t make surprising data we saw earlier look like a fluke, this stock will soar several times higher…
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