For those who are new to Biotech Frontiers, or for those who are looking to add to their current portfolio holdings, Erez Kalir highlights three current portfolio picks that are at an attractive buy point. We list them below. While we regularly alternate which companies we list as our “Best Buys,” removing a stock from the list does not necessarily mean we no longer recommend it up to its “buy up to” price. It’s only that the new picks present an even more compelling investment opportunity.
Here are the current “Best Buys” and Erez’ analysis…
Sagimet Biosciences (Nasdaq: SGMT) continues its quiet process of searching for a strategic partner to help fund the Phase III trial for its potential blockbuster denifanstat. Although the company has been understandably silent about this search, the longer it takes, the more optimistic Erez becomes. That’s because the duration of the process suggests two things: 1) management isn’t giving away the store for free by negotiating a bad deal, and 2) there may well be interest from strategic acquirors who are interested in buying the whole company. Erez remains hugely confident that management will land a good deal to fund the Phase III, and ultimately that denifanstat will prove to be a game-changing molecule in fatty liver illnesses, such as MASH. We re-recommended Sagimet to subscribers with an entry reference of $2.67 per share, leading to 85% gains based on the current share price. However, our buy-up-to price remains $5, and Erez would encourage subscribers who don’t yet own Sagimet to purchase a position below that level.
Roivant Sciences (Nasdaq: ROIV) is an upstart pharmaceutical company that looks at the drug-development gameboard through a new lens and uses its novel approach to turn things upside down in its favor. Erez continues to believe the company represents one of the safest, most attractive bets in the entire biotech universe – a rare setup where, at these prices, investors face very limited risk of permanent capital impairment. Roivant is a buy up to $13 per share.
Iovance Biotherapeutics (Nasdaq: IOVA) is the one laggard in our portfolio, with shares languishing well below our entry reference of $7.92 – and even more below our “buy up to” price of $8.75 per share (although the stock did more than double after we recommended it). Iovance’s poor recent stock performance is a classic tale of a disconnect between short-term expectations and likely long-term results. The market has become spooked about lifileucel’s slower-than-anticipated commercial launch, and pessimistic that lifileucel will deliver on blockbuster expectations. Suffice it to say, Erez doesn’t share the market’s concern. And he’s in good company. In the year since we originally recommended Iovance, Perceptive Advisors – arguably the most successful, storied biotech hedge fund of all time – has become the company’s third-largest shareholder, with an investment that now amounts to 8.7%. In dollar terms, Perceptive owns over $150 million worth of Iovance shares. Iovance shares are a buy up to $8.75, and Erez would encourage subscribers who don’t own it to take advantage of the opportunity to buy it at today’s level.
Published February 6, 2025