Despite the overall strength of the economy, 2024 was a challenging year for the biotech industry. High borrowing costs – especially ahead of the Fed’s first rate cut in years in September – coupled with the changing landscape in the health care sector have dampened the outlook for many companies. As a result, the benchmark iShares Biotechnology ETF NASDAQ: IBB was highly volatile but ultimately fell 1.2% in the year to January 17, 2025.
However, biotech is a high-risk, high-reward industry as a large number of young companies in the industry work to raise enough funding to sustain operations long enough to hopefully see an important new product come to market. When it all comes together, it can be a huge boon for investors: Blockbuster drug approvals and even positive clinical trial results can sometimes send stocks soaring by hundreds of percentage points.
As always, trying to time the market is likely futile. But investors are looking to buy shares of two popular companies – Avadel Pharmaceuticals plc. NASDAQ: AVDL and Sana Biotechnology Inc. NASDAQ: SANA— maybe you’ll be lucky in early 2025. At the same time, a third firm with a recent history of consolidation, ADMA Biologics Inc. NASDAQ: ADMAmay still provide opportunity for future growth.
Avadel Pharmaceuticals: Disappointing Recommendations Open Up Buying Opportunity
Avadel Pharmaceuticals stock forecast today
$21.00
Growth potential 170.97%Buy
Based on ratings of 7 analysts
| High forecast | US$30.00 |
|---|---|
| Average forecast | $21.00 |
| Low forecast | $13.00 |
Avadel Pharmaceuticals Stock Forecast Details
Avadel is known for its Lumriz, a one-of-a-kind treatment for excessive daytime sleepiness in adults with narcolepsy. Although the company reported fourth-quarter net product revenue of $50 million, up more than 150% year over year, shares fell in early January along with news that Avadel had set net guidance product revenue in the range of $240-260 million, below analysts’ expectations.
Lamriz faces a patient churn problem, but Avadel is actively working to improve acceptance rates among patients switching from other medications. The company is also enrolling patients in a phase 3 study to evaluate several other aspects of Lumriz’s effectiveness and safety. Fortunately for investors, Avadel has some leeway to address its underlying issues: The company has more than $70 million in cash and positive cash flow that is likely to generate between $20 million and $40 million this year.
Investors willing to take the risk of a long-term play for Avadel may find now is a good time to invest – as of January 17, 2025, the stock is down more than 48% over the past year.
Sana Biotechnology: Potential to Discover New Treatments for Type 1 Diabetes
Sana Biotechnology stock forecast today
$14.25
Growth potential 350.95%Moderate purchase
Based on ratings of 5 analysts
| High forecast | US$16.00 |
|---|---|
| Average forecast | $14.25 |
| Low forecast | $11.00 |
Sana Biotechnology Reserve Forecast Details
Sana is a clinical-stage gene and cell therapy biotechnology firm and penny stock that fell 48.5% in the year to January 17, 2025. But what might set this company apart from the plethora of similar penny-stock biotechs? its experimental allogeneic cell therapy is being studied in type 1 diabetes.
In early January, Sana released data from its study involving allogeneic transplantation—the transplantation of healthy donor cells into the body of a patient seeking treatment. Specifically, Sana said, the study showed “allogeneic graft survival without immunosuppression or an immunoprotective device.” This is potentially the first study of its kind. This could open up new treatments for type 1 diabetes and various other diseases if the company can replicate safe cell transplantation without immunosuppression.
Immediately after the news was announced, Sana’s share price more than doubled. As of Jan. 17, it’s still up about 65% over the past month, and four out of five analysts still view the stock as a Buy, with over 350% upside potential, based on a consensus price target of $14.25.
ADMA Biologics: Accelerating Growth
ADMA Biologics Stock Forecast Today
US$21.25
Growth potential 32.65%Buy
Based on ratings from 4 analysts
| High forecast | $26.00 |
|---|---|
| Average forecast | US$21.25 |
| Low forecast | $14.00 |
ADMA Biologics Stock Forecast Details
ADMA had a strong year in 2024; as it moved to increase commercialization of some of its products, revenue and net income grew significantly. In the third quarter of 2024, revenue grew 78% year-over-year to nearly $120 million, and net income increased an incredible 1,300% to just under $36 million.
Revenue and profit growth should help ADMA strengthen its balance sheet, with the company saying it expects to reach a leverage-neutral position in the fourth quarter of 2024. It also raised its 2025 revenue forecast to more than $485. with more than $415 million as 2026 revenue is expected to exceed $600 million. Moreover, ADMA believes the company’s total annual revenue will reach $1 billion through 2030, suggesting the growth rate could continue.
Although ADMA shares are up 228% over the past year, analysts believe there is still plenty of upside potential.
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