Right now, biotech is one of the hottest sectors on the market, creating big opportunities for some of the best biotech stocks to buy in April.
All of this is thanks to new innovation, millions of retiring baby boomers, demand for better care, pharmaceutical companies nearing patent expirations, a resurgence of mergers and acquisitions, and even new treatments that’ll help you shed weight.
Look at obesity drug stocks, for example.
Since the start of the year, Eli Lilly (NYSE:LLY) jumped from about $560 to $778. Part of that was thanks to sales of its obesity drug, Zepbound which saw $175.8 million in its first month out. Even better, Eli Lilly is seeing positive results in Phase 2 drug trials for patients with NASH, or nonalcoholic steatohepatitis, which impacts about 115 million patients all around the world.
Or, look at Novo Nordisk (NYE:NVO), which jumped from about $95 to a high of $135 thanks to Wegovy obesity drug sales, too. The company even forecast another year of double-digit sales growth for this year, and expects to boost U.S. supplies of Wegovy again this year.
With even more growth ahead for biotech, here are another some of the best biotech stocks to buy in April.
Viking Therapeutics (VKTX)
I’ve been pounding the table over Viking Therapeutics (NASDAQ:VKTX). In fact, every time I talk about biotech stocks these days, it’s a must-mention because of its potential.
When I first mentioned Viking Therapeutics, it traded at around $20 around June 22. Today, after hitting an all-time high of $99.41, it’s now at $82. From here, I’d like to see it at $100, or even acquired at more than $100 a share for two reasons.
One, the company is seeing good success with its GLP-1 obesity drug trials. It already reported that its Phase 2 VENTURE trial successfully achieved is primary endpoint and all secondary endpoints. It also said patients receiving VK-2735 demonstrated weight loss after 13 weeks, rating up to 14.7% from baseline weight.
Better, VKTX is about to start Phase 2 trials of its once-a-day weight loss pill. Viking said patients who received the pill once a day lost up to 5.3% of their weight on average, or up to 3.3% more than those who took a placebo, at 28 days, as noted by CNBC.
Madrigal Pharmaceuticals (MDGL)
We can also look at Madrigal Pharmaceuticals (NASDAQ:MDGL), another one of the best biotech stocks to buy in April.
Since bottoming out in February, the stock ran from about $170 to a high of about $300. Now at $267.04, it’s a buy on the dip.
Most recently, the United States FDA granted accelerated approval of the company’s NASH liver disease drug. “Madrigal’s drug, which will be marketed as Rezdiffra, is specifically approved to treat patients with NASH who also have moderate-to-advanced liver scarring. The treatment must be used with diet and exercise, according to the FDA,” noted CNBC.
“Rezdiffra helped resolve symptoms of NASH and improve liver scarring without making the condition worse. Notably, the rate of serious adverse events was comparable between the patient group that took the drug and another group that received a placebo.”
The drug – which will reportedly be available this month – could help the nearly six to eight million NASH patients just in the U.S.
Analysts over at Evercore ISI also raised their price target on MDGL to $405 from $325, with an outperform rating on the stock.
Altimmune (ALT)
Altimmune (NASDAQ:ALT) still looks interesting, too.
After pulling back from about $15 to $8, it’s starting to pivot higher again. From its last traded price of $10.18, I’d like to see it retest $15 initially. It’s also working on an obesity drug, with good results, as well. Citing data from its MOMENTUM trial, the company said pemvidutide, led to weight loss while preserving lean mass.
“At the 2.4 mg dose—he highest tested—mean weight loss of 15.6% was seen at week 48. More than 30% of patients in this cohort achieved at least 20% weight loss. Results further showed that greater weight loss was seen with higher doses of the peptide-based GLP-1/glucagon dual receptor agonist,” as noted by Seeking Alpha.
Helping, analysts at B. Riley have a buy rating on the ALT stock with a price target of $20. The firm added that the 25% lean mass reduction – relative to more advanced weight loss drugs—makes pemvidutide an “ideal lifestyle anti-obesity drug,” as noted by TheFly.com.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.