Piper
Sandler
named
three
biotech
stocks
as
its
“top
picks”
for
2024
—
citing
attractive
valuations
and
pipeline
of
product
launches.
The
biotech
sector
has
underperformed
the
S
&
P
500
index
over
the
past
two
years,
after
being
in
the
spotlight
at
the
height
of
the
Covid-19
pandemic
in
2021.
But
things
are
looking
up:
The
sector
is
picking
up
and
is
expected
to
get
a
boost
from
interest
rate
cuts
from
the
U.S.
Federal
Reserve
next
year.
“After
another
difficult
year,
there
are
signs
that
biotech
is
recovering
into
2024.
A
pause
or
even
reversal
in
interest
rate
hikes
is
constructive
for
biotech
financing
and
M
&
A
(mergers
&
acquisitions)
remains
active,”
Piper
Sandler’s
analysts
Edward
Tenthoff
and
Thad
Barney
wrote
in
a
Dec.
22
note
to
investors.
Arrowhead
Pharmaceuticals
Piper
Sandler’s
analysts
like
Arrowhead
,
reiterating
their
overweight
rating
for
the
stock.
They
cited
the
company’s
plan
to
release
phase
3
trial
data
for
plozasiran
for
the
treatment
of
familial
chylomicronemia
syndrome
in
mid-2024,
and
phase
3
trials
for
its
use
in
severe
hypertriglyceridemia,
among
other
developments.
It
is
also
looking
to
do
a
cardiovascular
outcome
trial
on
either
plozasiran
or
zodasiran
to
assess
their
impact
on
mortality
and
non-fatal
strokes.
Plozasiran
and
zodasiran
are
therapies
targeting
specific
genes
involved
in
the
oxidation
of
fatty
acids
for
energy
production
and
other
needs
of
the
body.
Data
from
analytics
company
GlobalData
,
shows
that
sales
of
plozasiran
and
zodasiran
will
hit
$651
million
by
2030,
and
$399
million
by
2029
respectively.
ARWR
YTD
mountain
Year-to-date
share
price
of
Arrowhead
Pharmaceuticals
Year-to-date
shares
in
Arrowhead
Pharmaceuticals
were
down
nearly
20%
to
$31.03
on
Dec.
27.
Piper
Sandler
expects
the
company’s
trial
pipeline
to
raise
its
stock
price
by
90%
over
the
next
12
months
to
$59
a
share.
Legend
Biotech
Legend
Biotech
is
another
one
of
Piper
Sandler’s
top
picks.
The
investment
bank
said
the
pharmaceutical
company’s
Carvykti
drug
—
which
is
used
to
treat
adults
with
bone
marrow
cancer
—
is
“the
best
in
class,”
with
“demand
far
outpacing
supply.”
Legend
Biotech
developed
and
commercialized
the
Carvykti
drug
with
Johnson
&
Johnson’s
Janssen
Biotech.
Piper
Sandler
expects
Carvykti
revenue
to
jump
from
$506
million
in
2023
to
$1.05
billion
in
2024,
and
notes
that
Legend
and
Janssen
are
planning
to
increase
global
supply
to
10,000
doses
annually
by
the
end
of
2025.
Peak
revenue
could
exceed
$5
billion,
supported
by
the
rise
in
production
levels,
according
to
the
analysts.
Aside
from
Carvykti,
Legend
is
“developing
a
rich
pipeline”
of
CAR-T
Cell
therapies
for
the
treatment
of
different
cancers,
the
analysts
wrote.
In
line
with
this,
the
company
announced
a
license
agreement
with
Novartis
last
month
to
develop
and
commercialize
cell
therapies.
LEGN
YTD
mountain
Year-to-date
shares
in
Legend
Biotech
Year-to-date
shares
in
Legend
Biotech
were
trading
20.5%
up
at
$58.70.
Piper
Sandler
expects
shares
to
rise
53.3%
to
$90
over
the
next
12
months.
Alnylam
Pharmaceuticals
Alnylam
also
made
Piper
Sandler’s
list
of
top
picks,
given
the
potential
of
its
phase
3
trials
on
Amvuttra
—
a
drug
used
in
the
treatment
of
polyneuropathy,
a
condition
that
involves
the
simultaneous
malfunction
of
nerves.
Piper
Sandler
expects
Amvuttra
sales
to
jump
from
$550
million
in
2023
to
$1.13
billion
in
2025.
It
also
cited
Alnylam’s
plans
to
make
progress
on
drug
trials
and
studies
to
treat
patients
with
severe
hypertension
and
Alzheimer’s
disease.
ALNY
YTD
mountain
Year-to-date
shares
in
Alnylam
Pharmaceuticals
Shares
in
Alnylam
were
down
nearly
16%
year-to-date
to
$196.57.
Piper
Sandler
expects
its
share
price
to
reach
$217
in
the
next
12
months,
giving
it
around
10.3%
potential
upside.
—
CNBC’s
Michael
Bloom
contributed
to
this
report.
