Exploring Potential Investment Opportunities in Top Performing Biotech Stocks of 2024

Summary:

Don't jump on the bandwagon too quickly. Finding stocks that can triple in two years is hard enough. Finding those that can do so in a mere two months is that much more impressive. That's precisely what Viking Therapeutics (NASDAQ: VKTX) and Janux Therapeutics (NASDAQ: JANX) have accomplished since the year started -- and then some. Both companies' shares have soared by well over 200% since early January, thanks to impressive clinical progress. No doubt existing shareholders are happy, but is it worth investing in these mid-cap biotechs after their recent runs?

Viking Therapeutics:

Viking Therapeutics focuses on developing medicines for metabolic diseases. The company's portfolio includes VK2735, a potential anti-obesity therapy, and VK2809, which targets non-alcoholic steatohepatitis (NASH). Both niches are projected to grow rapidly through the end of the decade, so there are plenty of opportunities here for a mid-cap biotech. Viking Therapeutics recently completed a phase 2 study for VK2735 with flying colors, jolting its stock price.

Risks:

• Viking stock could drop if it fails to deliver as expected.
• Competitors' progress could impact its performance.
• Funding challenges due to no revenue generation and consistent losses.

Janux Therapeutics:

Janux Therapeutics is a cancer-focused biotech developing innovative T-cell engagers to fight cancer cells. Recent interim phase 1 results for JANX007 and JANX008 showed promising efficacy and safety profiles. While the biotech has raised funds, investing in such early-stage companies poses substantial risks without phase 2 products.

Recommendation:

• Monitor the companies' progress for potential future opportunities.
• Invest cautiously due to high risks involved.