Biopharma Spotlight - 6/5/24

Biopharma stocks are seen as high risk yet potentially high reward, with great examples being Amgen and Moderna. Like its wider biotech sector, the success of these companies hinges on trial results and FDA approval. However, exciting new medical advances and the fast pace of technological innovation make these stocks attractive investments—if you know where to look. Kyverna Therapeutics (KYTX) and Structure Therapeutics (GPCR) are two lesser-known biopharmaceutical companies that analysts at J.P. Morgan are especially bullish on. Data shows important therapy breakthroughs that are currently in clinical trials and analysts are starting the significant potential for both companies.

Kyverna Therapeutics (KYTX)

Kyverna Therapeutics (KYTX) is a biopharma company developing chimeric antigen receptor T-cell (CAR-T) therapies for autoimmune diseases. Its lead candidate, KYV-101, is being evaluated in multiple clinical trials for lupus nephritis, systemic sclerosis, myasthenia gravis, and multiple sclerosis. Autoimmune disorders are typically challenging for biotech companies, so this possible treatment is getting attention. The company went public in February, and it reported $369.8 in liquid assets. J.P. Morgan analyst Brian Cheng expects upcoming clinical data to be a significant milestone for the company. He has a $39 price target, implying a potential 12-month upside of 210%. KYTX has a consensus strong buy rating based on 4 recent analyst reviews. The stock is currently trading at $13.71, up 5.71%.

Structure Therapeutics (GPCR)

Structure Therapeutics (GPCR) is a clinical-stage biopharmaceutical company developing oral small-molecule therapies for chronic pulmonary and metabolic diseases. Its lead candidate, GSBR-1290, is a selective GLP-1R agonist targeting obesity. Results from its Phase 2a study are expected this month. The company also has a Phase 2-ready candidate, ANPA-0073, for potential weight loss and idiopathic pulmonary fibrosis (IPF). J.P. Morgan analyst Hardik Parikh believes the opportunity for oral GLP-1 therapies for obesity and type 2 diabetes is underappreciated. He anticipates that the market can potentially reach $30 billion in sales by 2035. Parikh has a $65 price target on GPCR, suggesting a potential upside of 90%.

Neither Julie Stoller nor Stocks.News has positions in the stocks mentioned in this article. Please see our disclosure page for more information.