Top 4 Biotech companies to look out for in 2024

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The biotechnology industry is constantly evolving, with new companies emerging and established players making advancements every day. As we move through 2024, It’s important to recognise which companies are poised to make a significant impact. Currently, the market is leaning optimistically due to the high number of acquisitions into bopharma companies performed by biotech’s big players recently:

Recent biopharma Acquisitions

Company	M/A	$
AbbVie	Cerevel Therapeutics	$8,700M
AbbVie	ImmunoGen	$10,100M
Roche	Carmot Therapeutics	$2,700M
Roche	Telavant	$7,100M
Bristol Myers Squibb	Karuna Therapeutics	$14,000M

Considering the amount of recent movement in the market it is a very exciting time for the sector. Have a look at our list of the four most exciting biotech companies to keep your eye on in 2024:

Argenx SE (NASDAQ:ARGX)

Argenx is a global immunology company committed to improving the lives of people suffering from severe autoimmune diseases. They currently have an exciting drug development portfolio – notably:

Vyvgart (efgartigimod): Approved in 2021 for generalized myasthenia gravis (gMG), a rare, debilitating neuromuscular disease.
ARGX-117(Empasiprubart): In Phase III clinical trials for Multifocal Motor Neuropathy (MMN).

They have licensed their other technologies to giants such as AbbVie (argenx’s preclinical cancer immunotherapy ARGX-115) This provides them with a fantastic foundation with which to secure a large chunk of the neurology therapy market.

Argenx has been included in this list due to the extreme influx of patients adopting their Vyvgart Hytrudo solution. Their plans to expand its use for another high value indication (CIDP) is extremely promising and will be exciting to track progress for in 2024.

CSL Ltd (ASX:CSL)

Now I know what you’re thinking…the biopharma titan CSL had an uncharacteristic year in 2023. So what are they likely to change in the coming year?

1. The main reason for CSL’s drop in share price early 2023 was a negative forecast for foreign currency headwinds. Current predictions indicate that the Australian dollar is to rise by mid 2024, to $0.69/USD (ANZ), $0.68 (Westpac) and $0.71 (NAB). This will alleviate the main driver of investor uncertainty which resulted in CSL’s share price tank in early 2023.
2. CSL had their capital markets day in October 2023, where it was indicated they’re “Positioned for Annual Double-Digit Earnings Growth” which has appeared to spurn investor excitement.

These factors, along with their robust development pipeline, indicate that CSL is likely to have a strong year in 2024.

ResMed (ASX: RMD)

ResMed is a well-established company with a strong track record of growth and profitability. The company is known for its highly successful ventures into cloud-connected medical devices that transform care for people with sleep apnea, COPD and other chronic diseases. So why should we look out for them in 2024?

1. Brokers widely consider their shares to be undervalued. Goldman Sachs has a $32 price target for its shares, Morgan has $32.74 and Macquarie have a target of $33.40. At the time of writing this, ResMed is trading at $27.99 AUD, as per The Motley Fool. This indicates that ResMed is likely to have a very positive year with a potential upside of 16% predicted.
2. The market for sleep and respiratory health is still growing rapidly. With a CAGR of 8.74% from 2023-2032.

ResMed is a leader in their sector and are well-positioned to benefit from the growing demand for SDB and COPD treatment in 2024.

Amgen (NASDAQ:AMGN)

Amgen, a major player in the pharmaceutical scene, is making waves in the weight loss arena with their investigational drug, MariTide (maridebart cafraglutide). Unlike rival therapeutics Ozempic and Mounjaro (GLP-1 agonists), MariTide takes a unique approach by combining GLP-1 activation with GIP receptor inhibition, potentially leading to longer-lasting weight loss and less frequent dosing. While still in early stages, Amgen’s MariTide shows promise in its ability to achieve and maintain significant weight loss even after stopping the drug, potentially offering an exciting alternative in the weight management landscape.

Currently MariTide is in phase 2 testing with top-line data due for release in Q4. If positive, Amgen’s investor upside could be large due to the drug’s multibillion-dollar peak sales estimate – in line with recent competitors. Shaking up the weight loss drug landscape in 2024.

Disclaimer

Please note this is not financial advice, the information contained within this post has been provided as general information only. The contents have been prepared without taking account objectives, financial situation or needs. Please make informed financial decisions.