2 ‘Strong Buy’ Biotech Stocks With 120% or More Upside Potential

The biotechnology sector is a formidable force, heralding groundbreaking innovations that have transformed healthcare paradigms. Within this sector, the obesity drug market has surged dramatically in recent years, propelled by an increased awareness of obesity’s significant impact on overall health. Biotech companies are rising to the challenge, developing pioneering therapies that not only reshape healthcare but also create new wealth for investors. Industry projections indicate that the obesity drug market could reach a staggering $200 billion by 2031, highlighting vast growth opportunities. While established players like Novo Nordisk and Eli Lilly have set the standard, emerging entities like Viking Therapeutics, Inc. (VKTX) and Corbus Pharmaceuticals Holdings, Inc. (CRBP) are rapidly advancing. Recently, Piper Sandler issued a positive outlook on these two biotech stocks, showcasing their transformative potential. Supported by a consensus of “Strong Buy” ratings on Wall Street and an impressive prospect for triple-digit returns, let’s delve deeper into VKTX and CRBP.

Biotech Stock #1: Viking Therapeutics

Founded in 2012 and based in San Diego, Viking Therapeutics is an innovative, clinical-stage biopharmaceutical company dedicated to advancing treatments for metabolic and endocrine disorders. The crown jewel of its pipeline, VK2735, is a dual GLP-1/GIP agonist for obesity, which has demonstrated encouraging safety and clinical benefits in early testing. With both injectable and oral formulations in development, Viking is also making significant headway with VK2809, an oral medication for non-alcoholic steatohepatitis (NASH) and fibrosis; recent successful Phase 2 trials bolster its potential in these therapeutic areas.

Currently valued at approximately $5.7 billion, Viking’s shares have generated remarkable returns of **193%** over the past year and **171%** on a year-to-date basis. This performance eclipses the S&P 500 Index’s annual returns of only **33%** and **27.4%** year-to-date gains. The firm has demonstrated remarkable productivity in 2024, showing significant advancements in multiple clinical trials. In the first quarter of this year, Viking disclosed robust outcomes from the Phase 2 VENTURE trial of subcutaneous VK2735 for obesity, which revealed notable reductions in body weight after **13 weeks** of treatment.

Moreover, preliminary findings from a Phase 1 trial of an oral formulation of VK2735 in healthy volunteers exhibited promising weight loss and good tolerability. The company also reported favorable **52-week histology results** from the Phase 2b VOYAGE trial for VK2809, with significant reductions in liver fat and notable improvements in liver conditions.

On October 23, following its third-quarter earnings announcement, Viking’s shares surged an impressive **21.3%** in subsequent trading sessions. The firm reported a smaller-than-expected loss of **$0.22** per share, a slight improvement from the **$0.23** loss in the prior year quarter. Interestingly, the company’s research and development expenses totaled **$22.8 million**, up from **$18.4 million** the previous year, indicating ongoing investments in promising drug candidates. As of September 30, Viking held a robust cash position of **$930 million**, significantly up from the **$362 million** at the end of fiscal 2023. This strong financial base enables Viking to focus on key milestones in its clinical programs.

Looking ahead to Q4, Viking is preparing for an End-of-Phase 2 meeting for subcutaneous VK2735 in obesity and plans to initiate a Phase 2 study of its oral formulation. Piper Sandler notably commended Viking for its solid metabolism pipeline encompassing both obesity and NASH therapies, emphasizing the potential of VK2735 oral as a leading competitor in the incretin class owing to lower gastrointestinal side effects and robust efficacy. With all **14** covering analysts assigning a “Strong Buy” rating and an average analyst price target of **$111.08**, VKTX showcases potential upside of **122.7%** from current price levels.

Biotech Stock #2: Corbus Pharmaceuticals

Massachusetts-based Corbus Pharmaceuticals Holdings, Inc. is emerging as a leader in oncology and obesity, dedicated to developing cutting-edge therapies for serious health conditions. The company’s pipeline features **CRB-701**, a next-generation antibody-drug conjugate targeting Nectin-4 on cancer cells and delivering a powerful cytotoxic payload to combat tumors. Corbus is also advancing **CRB-913**, a highly peripherally restricted CB1 inverse agonist designed to treat obesity.

With a market cap of around **$185 million**, Corbus shares have experienced remarkable growth, boasting gains of **156%** over the past year and **152%** year-to-date. The company shared its Q3 earnings on November 7, resulting in a **1.4%** uptick in shares in subsequent trading sessions. The reported quarterly loss of **$1.15** per share showed significant improvement from the previous year’s **$2.27** loss. Operating expenses climbed to roughly **$15.5 million** for the quarter, up from **$9.5 million** last year, primarily due to increased clinical trial expenses for CRB-701 and IND-enabling studies for CRB-913.

On a positive note, as of September 30, Corbus reported a solid financial position with **$159.4 million** in cash and equivalents, sufficient to fund its operations through Q3 of fiscal 2027. The company also successfully raised **$35.6 million** through its ATM program, fully paying off its **$11.8 million** loan. Notably, Corbus CEO Yuval Cohen stated that CRB-701 is en route to deliver the first data from its U.S. bridging study in Q1 2025, while CRB-913 is set for its first study participant dosing in Q1 2025, following the presentation of preclinical data at Obesity Week 2024.

Piper Sandler views CRB-701 as a potential standout treatment for cervical cancer and other solid tumors, projecting peak risk-adjusted sales at **$555 million**. The firm envisions CRB-913 as an important player in targeting obesity patients who drop out of GLP-1 therapy due to tolerability challenges, potentially combining with incretin treatments. With Phase 1 trials expected to commence in Q1 2025, Piper set a target price of **$35** and an “Overweight” rating for Corbus. Wall Street maintains an optimistic outlook for CRBP stock, with a consensus “Strong Buy” rating; of the nine analysts tracking the stock, eight recommend a “Strong Buy,” while one suggests a “Moderate Buy.” The average analyst price target of **$58.67** indicates **283.5%** upside potential from current levels.

In summary, both Viking Therapeutics and Corbus Pharmaceuticals represent attractive investment opportunities within the dynamically evolving biotech landscape, particularly in the lucrative obesity treatment niche.