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The Zacks Analyst Blog Highlights Sarepta Therapeutics, ADMA Biologics, Exelixis and Alnylam

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For Immediate Release

Chicago, IL – December 20, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Sarepta Therapeutics (SRPT - Free Report) , ADMA Biologics (ADMA - Free Report) , Exelixis (EXEL - Free Report) and Alnylam Pharmaceuticals (ALNY - Free Report) .

Here are highlights from Thursday’s Analyst Blog:

4 Biotech Stocks Most Analysts Are Bullish About

It was a choppy ride for the biotech sector in 2024. While the year started on a positive note, much of the gains were pared thereafter, and the sector is down 10.5% as of now. New drug approvals and a surge in mergers and acquisitions (M&A) activity were expected to keep the sector going in 2024, but a slowdown in collaboration deals despite a drop in interest rates and market volatility hit hard.

Nonetheless, given the continuous need for innovative medical treatments, irrespective of the state of the economy, the biotech industry will continue to grab investors’ interest despite the inherent volatility and uncertain macroeconomic environment.

M&A activity will likely accelerate in 2025 with a change in administration and expected deregulation. Pharma and biotech bigwigs always look to bolster their product portfolios and pipelines through collaborations and buyouts. While oncology and immuno-oncology companies have always been acquisition targets, those with obesity drugs in their portfolio/pipeline and gene-editing companies hold great potential. This, in turn, will put the spotlight on smaller biotech companies with promising candidates in their kitty.

Here, we discuss four biotech stocks that put up a robust show in 2024 and are likely to maintain the same in 2025 on the back of a solid portfolio and a promising pipeline. These are Sarepta Therapeutics, ADMA Biologics, Exelixis and Alnylam Pharmaceuticals.

Sarepta Therapeutics

Sarepta’s portfolio received a significant boost with the FDA approval for Elevidys — the first-ever gene therapy for the Duchenne muscular dystrophy (DMD) indication. Since its launch, the gene therapy has demonstrated blockbuster potential. In June 2024, the FDA granted label expansion approval to Elevidys to treat all DMD patients aged four years and older.

SRPT is also working to add new gene therapy treatments to its portfolio. It is developing gene therapy programs for Limb-girdle muscular dystrophy (LGMD) and plans to submit a regulatory filing with the FDA in mid-2025 for its LGMD candidate, SRP-9003. The company is also developing potential therapeutic candidates for other neuromuscular and central nervous system disorders.

Apart from Elevidys, Sarepta has three other therapies — Exondys 51, Vyondys 53 and Amondys 45 — in its commercial portfolio targeting the DMD patient population.

Sarepta has put up a strong performance in 2024, with shares surging 24.7%. Positive regulatory updates and good pipeline progress should help the stock gain further. The current average target price of $184.15 for SRPT represents an upside of 46.43%.

SRPT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ADMA Biologics

ADMA Biologics markets plasma-derived biologics for the treatment of immune deficiencies and prevention of certain infectious diseases.

The targeted market has significant potential. Asceniv is a plasma-derived IVIG that contains naturally occurring polyclonal antibodies. Its strong sales growth is driving the top line. The ongoing post-marketing study for Asceniv may provide a label expansion opportunity to include pediatric-aged PI patients. Incremental additional penetration of Asceniv should accelerate near-term revenue growth.

ADMA’s higher-margin product portfolio now accounts for more than 50% of its total revenues. The company is working to increase Asceniv's supply. If successful, Asceniv will account for a significant portion of ADMA's total revenues over time, further advancing its potential margin expansion and earnings growth.

The company has put up a stupendous performance in 2024, buoyed by strong quarterly performances and a consecutive increase in guidance. Shares have skyrocketed 291.6% so far in 2024.

The stock currently carries a Zacks Rank #2. Earnings per share (EPS) estimates for 2024 and 2025 have increased 3 and 14 cents, respectively, in the past 60 days. The current average target price of $25 for ADMA represents an upside of 34.19%.

Exelixis

Exelixis has been a consistent outperformer of late on the back of the strong performance of its lead drug, Cabometyx, and encouraging pipeline progress. Cabometyx maintains its status as the leading tyrosine kinase inhibitor (TKI) for the treatment of renal cell carcinoma. This is mainly attributable to its use in combination with Opdivo in the first-line setting. The drug also maintained growth in the hepatocellular carcinoma indication.

Management is focused on the label expansion of Cabometyx. The FDA accepted EXEL’s supplemental new drug application (sNDA) for cabozantinib for patients with previously treated advanced pancreatic neuroendocrine tumors (pNET) and those with previously treated advanced extra-pancreatic NET (epNET). It also assigned a standard review with a target action date of April 3, 2025, and granted the orphan drug designation to cabozantinib for the treatment of pNET. A potential label expansion should further propel its growth prospects.

The pipeline progress has also been impressive as Exelixis looks to expand its oncology portfolio beyond Cabometyx; another promising candidate in Exelixis’ pipeline is zanzalintinib, a next-generation oral TKI.

The company is also making efforts to increase shareholder value through repurchases.

EXEL currently carries a Zacks Rank 2. Shares of the company have surged 40.3% so far in 2024. EPS estimates for 2024 and 2025 have gained 10 cents and 14 cents, respectively.

Alnylam Pharmaceuticals

Alnylam’s marketed drugs, Amvuttra, Givlaari and Oxlumo, are performing well. The strong uptake of Amvuttra is being driven by new patients starting treatment as well as patient switches from Onpattro. The company is also working to expand Amvuttra’s label, which should further fuel sales.

Alnylam has collaborated with Regeneron, Sanofi and Roche among others to advance its pipeline. It also has a deep pipeline with promising candidates, namely cemdisiran, mivelsiran and zilebesiran. The successful development and commercialization of all these candidates would be a huge boost for the company.

ALNY currently carries a Zacks Rank 2. Shares of the company have surged 24.3% year to date. Loss per share estimates for 2024 and 2025 have narrowed 4 cents and 35 cents, respectively. The current average target price of $296.32 for ALNY represents an upside of 24.55%.

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