Key Points
- Biotechs Sarepta and BioMarin are developing million-dollar gene therapies for severe genetic disorders.
- Gene therapy is poised for explosive growth, with analysts predicting substantial market expansion.
- The global cell and gene therapy market is expected to reach approximately $82.24 billion by 2032.
- 5 stocks we like better than Sarepta Therapeutics
It’s not often that you see a company whose main product comes with a price tag of over $2 million, but that’s the case with biotechs BioMarin Pharmaceutical NASDAQ: BMRN and Sarepta Therapeutics NASDAQ: SRPT, which are developing gene therapies. ‘
Analysts say the gene therapy business is about to see an explosion in growth. That means gene therapy technologies could be the future drivers of big price gains, as we’ve seen with AI and weight-loss drugs this year.
No, those products priced at $2 million or more per treatment aren’t prescriptions you’ll pick up at your local pharmacy.
However, they are promising treatments for very serious genetic conditions. As you might guess, these are sophisticated gene therapies with the potential to disrupt the ways certain disorders are treated.
According to data from Precedence Research, the global cell and gene therapy market size was valued at $15.46 billion in 2022 and is projected to reach approximately $82.24 billion by 2032. That’s a compound annual growth rate of 18.3% from 2023 to 2032.
Sarepta Therapeutics
Sarepta specializes in targeted gene therapies, particularly for muscular dystrophy. The Cambridge, Massachusetts company currently has four products that have gotten the nod from regulators. Its treatments specialize in Duchenne muscular dystrophy (DMD), a progressive illness that shortens patients’ life expectancies.
In May, Sarepta stock gapped up 30.77% after the Food and Drug Administration OK’d an experimental treatment for DMD.
A look at the Sarepta Therapeutics chart shows you the stock has been correcting since then, but wild price swings are not unusual with biotech stocks, particularly those like Sarepta that are not yet profitable.
However, that situation is expected to change: Wall Street expects the company to pivot to profitability next year, with earnings of $3.32 a share.
Sarepta’s Elevidys treatment is priced at a cool $3.2 million, which, of course, no consumers are shelling out. The company’s cost-benefit analysis has shown that it will be a cost-effective expense for health insurers. It also believes the Elevidys treatment will be discounted.
BioMarin Pharmaceutical
The California company recently got a stock price boost from positive clinical trial results from its experimental drug Roctavian, a gene therapy for blood disorder hemophilia.
Roctavian has a list price of $2.9 million.
However, in this case, and with other biotechs whose products carry a price tag of $1 million or more, some analysts say insurance will pick up the tab, although others say high prices could make treatments prohibitive for more patients.
As is the case with Sarepta, this stock can show some volatile trade, as you can see on the BioMarin Pharmaceutical chart.
In 2022, it posted nearly $2.1 billion in total revenues. That total includes a significant contribution from the launch of Voxzogo, a prescription medicine to increase linear growth in children with achondroplasia, a genetic disorder causing dwarfism due to abnormal bone growth.
BioMarin has been profitable since 2017, and Wall Street expects that trend to continue, with earnings growing 181% next year to $2.56 a share.
Other Cutting-Edge Gene Therapy Companies
A number of other publicly traded healthcare stocks and biotech stocks are companies known for their work in developing cutting-edge gene therapies.
In addition to Sarepta and BioMarin, those companies include:
Gene therapies have the potential to revolutionize healthcare by providing one-time treatments with benefits that last for years.
While many of these treatments are becoming viable and getting the OK from regulators, their high prices may be a hurdle to overcome before the treatments are more widely available, which means delivering consistently high returns to healthcare stock and biotech stock investors.
Before you consider Sarepta Therapeutics, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Sarepta Therapeutics wasn't on the list.
While Sarepta Therapeutics currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
MarketBeat's analysts have just released their top five short plays for May 2024. Learn which stocks have the most short interest and how to trade them. Click the link below to see which companies made the list.
Get This Free Report
