Top Biotech Picks For 2024: Piper Sandler Foresees Potential Sector Comeback
Portfolio Pulse from Surbhi Jain
Piper Sandler Cos has selected Arrowhead Pharmaceuticals, Legend Biotech, and Alnylam Pharmaceuticals as top biotech picks for 2024, predicting a sector comeback. Arrowhead's gene therapies, Legend's Carvykti for bone marrow cancer, and Alnylam's focus on neurological disorders are key highlights. Despite recent share price declines, Piper Sandler forecasts significant share price increases for these companies over the next 12 months. The biotech sector's performance, as tracked by the iShares Biotechnology ETF, has lagged behind the broader market, represented by the SPDR S&P 500 ETF.
December 29, 2023 | 1:34 pm
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POSITIVE IMPACT
Alnylam Pharmaceuticals is highlighted by Piper Sandler for its Amvuttra drug trials, with a projected 10.3% stock increase despite a recent dip in share price.
Alnylam's promising trials for Amvuttra and its commitment to severe health issues, along with a projected share price of $217, indicate a positive short-term outlook.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Arrowhead Pharmaceuticals is favored by Piper Sandler with a 90% expected share price increase due to its phase 3 trials for plozasiran and potential cardiovascular outcome trials.
Piper Sandler's overweight rating and the high sales projections for Arrowhead's therapies suggest a strong potential for stock appreciation, especially with the anticipated 90% increase.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
The iShares Biotechnology ETF, which tracks biotech performance, has underperformed compared to the broader market, but may benefit from a sector turnaround.
As a benchmark for biotech stocks, IBB's performance could improve with the sector's potential comeback, as suggested by Piper Sandler's top picks.
CONFIDENCE 65
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Legend Biotech's Carvykti drug and its collaboration with Novartis have led Piper Sandler to predict a 53.3% increase in its shares, with substantial revenue growth expected.
The 'best in class' status of Carvykti and the forecasted revenue surge support a bullish outlook for Legend Biotech's stock, justifying the anticipated 53.3% increase.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 85
NEUTRAL IMPACT
Piper Sandler Cos, having identified top biotech picks, may see its reputation and performance influenced by the accuracy of its predictions.
While PIPR's stock may not be directly impacted by the biotech sector's performance, the success of its stock picks could enhance its credibility and indirectly affect its stock.
CONFIDENCE 65
IMPORTANCE 55
RELEVANCE 60
NEUTRAL IMPACT
The SPDR S&P 500 ETF, representing the broader market, has outperformed the biotech sector, but may see changes if the biotech sector recovers as forecasted.
SPY's performance is not directly tied to the biotech sector, but a significant recovery in biotech could have a positive, albeit indirect, impact on the ETF.
CONFIDENCE 60
IMPORTANCE 50
RELEVANCE 50