Are you looking for stocks that could make some big moves in a short amount of time? If so, you’ll want to look at these biotech stocks.
Each of these companies has a big catalyst coming up before the end of June that could push their share price up or pull it down. Read on to see why you can expect extra volatility from these three drugmakers over the next week and a half.
|Company (Symbol)||Stock Performance in 2021||Market Cap|
|Corbus Pharmaceuticals (NASDAQ:CRBP)||(-29%)||$240 million|
|Gemini Therapeutics (NASDAQ:GMTX)||(-13%)||$452 million|
|Intellia Therapeutics (NASDAQ:NTLA)||17%||$5.4 billion|
1. Corbus Pharmaceuticals
This clinical-stage biotech is developing cannabinoids for patients with rare diseases who lack effective treatment options. Corbus Pharmaceuticals’ lead candidate, lenabasum, is a novel synthetic cannabinoid that reduces chronic inflammation.
Before the end of June, Corbus Pharmaceuticals is expected to report topline results from a phase 3 trial with dermatomyositis patients. In addition to skin rashes, patients with this disorder suffer from debilitating muscle weakness and there aren’t any treatment options that get at the source of inflammation.
As the first available treatment for dermatomyositis, lenabasum could generate blockbuster sales for Corbus Pharmaceuticals and push its stock price through the roof in the process.
2. Gemini Therapeutics
This company is developing a potential new treatment for the leading cause of vision loss in adulthood, age-related macular degeneration (AMD). Before the end of June, Gemini Therapeutics is expected to present topline results for a phase 2 trial with its lead candidate, GEM-103.
Gemini’s lead candidate is a complement factor H (CFH) replacement therapy meant for a genetically defined group of dry AMD patients who can’t produce enough of their own. The company thinks there are around six million Americans losing their vision to dry AMD who could benefit from regular injections of GEM103 into their eyes.
Treating the much smaller population of wet AMD patients with regular injections of vascular growth factor inhibitors is already a huge business. The leading wet AMD treatment, Eylea generated $7.5 billion in sales last year, so success for Gemini Therapeutics in the larger dry AMD indication could send this stock to the moon.
3. Intellia Therapeutics
Last November, Intellia Therapeutics began the first study with a drug that uses CRISPR/Cas9 to edit genes on the fly in the body. Until now, CRISPR-based drugs have relied on harvesting stem cells which are edited outside the body before they’re reinfused.
On Jun. 26, 2021, we’ll get our first look at clinical data for Intellia Therapeutics’ lead candidate, NTLA-2001 as a potential cure for people living with hereditary ATTR amyloidosis with polyneuropathy (hATTR-pn). This is a progressive, fatal disorder with symptoms that usually don’t show themselves until adulthood. The company is scheduled to present interim data from the first handful of patients treated with the lowest doses in the ongoing ascending dose study.
Since earning approval to treat the same group of hATTR-pn patients in 2018, sales of Onpattro from Alnylam (NASDAQ:ALNY) have climbed steadily to reach an annualized $408 million in the first quarter. Alnylam priced Onpattro at around $450,000 per year, so we could see a lot of demand for a once-and-done solution from Intellia.
What to look for
If you’re looking for a sure thing on this list you can forget it. Betting on Corbus Pharmaceuticals to produce compelling evidence of efficacy for lenabasum, formerly Resunab has been hazardous to biotech investors in the past. It’s probably best to watch this biotech stock from a safe distance until lenabasum has a chance to redeem itself.
Gemini Therapeutics completed a small phase 1 trial with GEM-103 before beginning its ongoing phase 2 study with dry AMD patients. While it appeared safe enough to move into larger studies, there it’s still too early to know if CFH replacement therapy is a viable approach for preventing dry AMD patients from going blind.
Intellia Therapeutics’ big $5.2 billion market cap says there’s already a lot of success for NTLA-2001 baked into the stock price. Results that are anything less than spectacular from the first patients to receive the revolutionary gene therapy could lead to some heavy losses.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
View more information: https://www.fool.com/investing/2021/06/22/biotech-stocks-with-big-catalysts-in-june/