Investing

$10 Biotech Stock Wall Street Says Will Be Up Over 200% This Year

John Seetoo

Published: March 15, 2024 9:11 am

Dementia is a major healthcare problem across the globe. It is estimated by medical professionals that someone develops some form of dementia every three seconds, and about 55-60 million people currently suffer from it, with 78 million predicted by 2030. 

Alzheimer’s Disease and Parkinson’s Disease are two of the most common manifestations of dementia categorized neurodegenerative disorders. There are a number of competing drug treatments to help with Alzheimer’s and Parkinson’s Disease symptoms, but scant few addressing causes. The biotech industry has been actively trying to meet this need. 

Biogen Inc.’s (NYSE: BIIB) Lecanemab and soon-to-be-discontinued Aducanumab were the most promising treatments for slowing the progression of Alzheimer’s Disease by removing beta-amyloid from the brain, which has been shown to reduce the rate of cognitive decline. There are no FDA approved drugs at the time of this writing for reducing the spread of Parkinson’s disease.

A Different Approach For Treating Dementia Causes Instead of Only Symptoms

However, a new drug currently in FDA Phase III clinical trials from Annovis Bio, Inc. (NYSE: ANVS) has shown promise to enter that limited field. Buntanetap, is Annovis Bio’s primary product, and it is intended for treating both Alzheimer’s Disease and Parkinson’s Disease by not only reducing beta amyloids, but tau, alpha synuclein, and TDP43. This broader approach, which targets reduction of an array of neurotoxic proteins, may potentially not only slow the progression, but early indications show it might be able to reverse it. 

The Annovis Bio Story

Founded in 2008 by President and CEO Dr. Maria Maccecchini, Ph.D, Annovis Bio is Dr Macccecchini’s second stint as a biotech company CEO. She previously founded and was the CEO of Symphony Pharmaceuticals, which was sold to Transgenomic in 2001. She then started QR Pharma, which was renamed as Annovis Bio in 2019. 

The principal behind the Annovis approach of preventing neurodegenerative disease lies in preserving the nerve cells and preventing loss of neurons caused by neurotoxic proteins. Dr. Maccecchini’s use of Buntanetap to systematically target the removal of these proteins in the brain is what has shown in early studies to slow, and possibly reverse the mental decline from dementia;

In addition, to Buntanetap, Berwyn, PA based Annovis Bio is developing ANVS405, a prophylactic brain drug to help protect the brain during recovery from stroke or trauma, and ANVS301, which is in Phase I clinical trials for improving cognitive capability in late stage Alzheimer’s Disease and dementia. 

Who’s Following Annovis Bio

The Annovis Bio IPO only closed in Q4 2023, so historic trading in the stock is less than a full six months. Cannacord Genuity was the bookrunner on the deal. 

Of the analysts currently following ANVS, two of them, including H.C. Wainwright & Co., rate it a “strong buy” and the others with a “buy”, with only Brookline Capital changing from “buy” to “hold” at the end of February due to the recently announced extension required for FDA testing completion and results, due to the last patient visit occuring in mid-February, two weeks past the originally forecast completion date. 

According to Insider Monkey’s fourth quarter database, Adage Capital Management, run by Phill Gross and Robert Atchinson, is  the largest institutional stakeholder of the company, with 285,347 shares worth $5.3 million. 

The analysts’ 12-month target price consensus is $34.60. The stock is in the $9.06 range at the time of this writing. 

For another kind of stock that Wall Street analysts anticipate will make triple digit gains, see here.