Biotech: the top stocks to watch in 2024

Biotech: themes that are driving a rebound for 2024

In the dynamic field of biotechnology, 2023 has been marked by an increased interest in financing early stages of innovation, according to the Novotec report "Navigating the Biotechnology Landscape" published in December. In other words, investment in unlisted companies.

Despite a tight financing context, investors have targeted preclinical projects as well as series A and B financing phases, with particular attention to the oncology sector. This trend highlights the recognition of the fundamental importance of upstream research, which lays the foundations for tomorrow's medical discoveries. Companies capable of demonstrating significant advances in understanding and treating cancers are therefore in the forefront to attract funds.

In parallel, the biotechnology landscape has experienced a wave of consolidations, notably small innovative companies benefiting from promising pipelines and favorable ratings. These entities become attractive takeover targets, often spurred by the approach of their patent expirations, a telltale sign of the intrinsic value of their research and their market potential.

On the other hand, demand for new treatments in the fields of obesity, diabetes, anti-inflammatories, and anti-cancer therapies remains strong, signaling an opportunity for companies positioning themselves at the forefront of these treatments. Furthermore, the exploration of microbiome technologies opens up new perspectives, promising an era of innovations and personalized treatments based on a deeper understanding of human biology.

Ad

Valneva: 2 highly anticipated vaccines for 2024

In the bustling biotech sector, Valneva stands out with significant growth potential. This company has crossed a major milestone with the approval of its vaccine against chikungunya in the US market, and is also making progress in the fight against Lyme disease through a strategic partnership with Pfizer. These promising advances could mark a turning point in the prevention of vector-borne diseases that have been previously overlooked, paving the way for a future where control of these conditions could be greatly improved.

Biosynex: a potential rebound thanks to acquisitions

In the meantime, Biosynex anticipates a revival of dynamism with also an interesting growth potential. Although the company has experienced a sharp decline in COVID-19 test sales, a return to growth as early as 2024 is envisaged. Engaged in a proactive expansion approach, Biosynex is not only consolidating its market position but is also looking to enrich its expertise. The recent acquisition of Theradiag, a player in in-vitro diagnostics, aligns with this evolution and diversification strategy, signaling the formation of a center of excellence dedicated to the monitoring of biotherapies.

Nanobiotix: highly anticipated results in oncology

Nanobiotix, on the other hand, presents itself with a upside potential supported by a robust treasury and a strong partnership. The nanoparticles developed by this Parisian company hold the hope for a revolutionary cancer treatment. This outlook led an American investment bank to recommend the purchase of the shares, with an optimistic forecast of over 80% gains for the year. The scientific community and investors are awaiting significant clinical results in the treatment of head and neck cancer, expected for the second half of the year, which could consolidate Nanobiotix's position.

2 ETFs to watch

For individuals interested in the biotechnology sector, one investment solution is to choose an ETF.

An ETF (Exchange-Traded Fund) is an investment fund that trades in the same way as an ordinary share. It generally follows a specific index, which provides investors with a simple and inexpensive way to diversify their portfolio while benefiting from management fees generally lower than those of mutual funds.

In terms of Biotechs, investors can for example target the American ETFs iShares Nasdaq US Biotechnology UCITS ETF (ISIN: IE00BYXG2H39) or Invesco Nasdaq Biotech UCITS ETF (ISIN: IE00BQ70R696). At the moment, no ETF on the Next Biotech index has been detected.