The 3 Best Biotech Stocks to Buy in January 2024

Ian Cooper

Tue, Jan 9, 2024, 9:01 PM 4 min read

Look at obesity drug stocks, like Eli Lilly (NYSE:LLY) for example. The stock exploded from about $460 to a high of $626 just over excitement with its obesity treatment. After all, with obesity bursting at the seams, many are excited about the idea of a drug that can help them shed extra pounds.

Or, look at gene-editing stocks, like CRISPR Therapeutics (NASDAQ:CRSP), which exploded from $37.50 to $75 leading up to US FDA rulings.

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The point is—spot a hot opportunity in the biotech sector, and you could make a fortune.

That being said, here are three of the best biotech stocks you may not want to miss.

Viking Therapeutics (VKTX)

Photo of test tubes and droplet with purple and reddish-orange sunset visual effect, representing biotech

Source: shutterstock.com/Romix Image

With an obesity drug in the works, Viking Therapeutics (NASDAQ:VKTX) recently ran from about $9 to $19.50 and could see higher highs. Helping, the company just completed patient enrollment in its Phase 2 clinical trial of VK2735 for the treatment of obesity. From here, the company expects to post the results of this study in the first half of this year.

We already know Phase 1 helped reduce body weight by up to 8% — with hopes that Phase 2 data will be just as exciting.

Better, VKTX could be a potential acquisition target, as drug makers look to expand their presence with obesity drugs. Roche (OTCMKTS:RHHBY), for example, just acquired obesity drug maker Carmot Therapeutics in a $3.1 billion deal. Reportedly, “Carmot Therapeutics’ CT-388 demonstrated substantial weight loss in Phase 1b,” as noted in a company press release.

Altimmune (ALT)

Brown glass pill bottle on its side showing white pills inside, with other pill bottles behind it representing MACK stock.

Source: shutterstock.com/Champhei

Another one of the best biotech stocks to consider is Altimmune (NASDAQ:ALT), a clinical-stage biopharmaceutical company also focused on obesity treatments. Its lead product candidate, pemvidutide, is a GLP-1/glucagon dual receptor agonist that’s already showing success.

ALT just posted positive topline results for its Phase 2 obesity trial, which, according to JMP Securities, also performed better in terms of weight loss than Novo Nordisk’s (NYSE:NVO) Wegovy.

“Pemvidutide has a competitive profile based on the top-line MOMENTUM data with greater weight loss than semaglutide, better lipid changes, and tolerability than tirzepatide, and better cardiac safety than retatrutide,” JMP said, as quoted by Seeking Alpha.

Piper Sandler added the drug “is the most late-stage, de-risked asset in obesity marked by competitive weight loss, robust reduction in circulating lipids, clean safety and direct liver de-fatting effects with glucagon agonism thus potential NASH read through. With the massively growing interest in the obesity market, partnership interest remains high with expectations to line one up next year ahead of Phase 3,” as quoted by TipRanks.com.

While ALT did run from about $3 to $11.40 so far on obesity treatment excitement, I still believe it could double from here.

Omega Therapeutics (OMGA)

Pipette adding fluid to one of several test tubes; biotech NVTA Stock

Source: motorolka / Shutterstock.com

There’s also Omega Therapeutics (NASDAQ:OMGA), which is developing a new class of programmable epigenomic mRNA medicines to treat or cure a broad range of diseases, as noted on its site.

Since November, OMGA ran from a low of $1.30 to a recent high of $6.30. Now at $4.35 on healthy profit-taking, the stock could push higher again. All after inking a research deal with Novo Nordisk to develop a “novel epigenomic controller for obesity treatment using Omega’s proprietary platform technology and Novo Nordisk’s cardiometabolic research expertise,” as noted by a Novo Nordisk press release.

“By harnessing the human body’s innate mechanisms to control cellular identity and gene expression, Omega’s proprietary platform has the potential to create an epigenomic controller designed to enhance thermogenesis, and therefore metabolic activity,” they added.

Analysts at H.C. Wainwright raised their price target on Omega Therapeutics to $12 from $11, with a buy rating. Analysts at Wedbush have a $12 price target, believing the collaboration with Novo Nordisk is a validation of the OMGA platform.

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.