Scotiabank ranks three biotech companies as “top picks,” with each company’s share price likely to more than double over the next 12 months. The bank’s optimism about these companies and the broader biotech industry is based in part on expected changes in the macroeconomic environment. Scotiabank equity analyst Greg Harrison said in a note to clients on Oct. 15 that “the shift in macro monetary policy to interest rate cuts is a significant driver that could reignite more interest in the sector.” Broad investment interest”. Cylinder, with its strong execution and numerous products in development, has the potential to redefine the standard of care for various disease indications, and we believe valuations position the industry with significant upside potential. Of the 15 stocks Scotiabank initiated research on, Rocket Pharmaceuticals, Liquidia Corp and Ocular Therapeutix were the three chosen as top picks. Investors should be aware that investing in biotechnology carries inherent risks, including regulatory hurdles and clinical trial outcomes. Rocket Pharmaceuticals Scotiabank believes Rocket is uniquely positioned to enter the commercial stage of medical development with two potential gene therapies on the horizon. “We expect Kresladi and RP-L102 to launch in 2025, and given the unmet need and lack of competition for LAD-1 and Fanconi anemia, we see few barriers to entry for these two gene therapies,” Harrison noted. Leukocyte adhesion deficiency (LAD-1) is a rare immunodeficiency disease. The investment bank expects shares to rise to $50 over the next 12 months, or 165% of current shares. RCKT 1Y Series Liquidia Corp Scotiabank is optimistic about the company’s Yutrepia therapy, scheduled to launch in May 2025, to treat pulmonary arterial hypertension. “We see tremendous opportunity in the pulmonary hypertension (PH) area associated with interstitial lung disease… This is a new and growing market that we estimate Yutrepia can generate at conservative patient penetration rates,” Harrison said. $1 billion in sales. Scotiabank expects shares to rise nearly 170% to $30 per share over the next 12 months LQDA 1Y Series Oural Therapeutix The bank sees Ocular’s Axpaxli treatment for wet age-related macular degeneration (wAMD). is a potential game-changer. According to the UK’s National Health Service, wAMD is a common condition that affects vision, making it difficult for people in their 50s and 60s to read and recognize faces. “Long-lasting implants will revolutionize the wAMD treatment landscape in the coming years, and we believe Ocular’s Axpaxli is differentiated in terms of efficacy and treatment durability based on prior clinical data,” the company said in a note to clients. Sen estimates that even modest market penetration could generate more than $1 billion in annual sales, with shares of Oural Therapeutix expected to nearly double from $11.33 currently to $22 over the next 12 months.
