3 Top Stocks That Could Still Rocket Higher in 2024

Investors looking for stocks that could make dramatic movements in a short, defined time frame want to turn their attention toward the biopharmaceutical industry.

There are less than three months left before the end of 2024, but that's plenty of time to see dramatic stock price activity from BridgeBio Pharma (NASDAQ: BBIO), PTC Therapeutics (NASDAQ: PTCT), and Vertex Pharmaceuticals (NASDAQ: VRTX).

The U.S. Food and Drug Administration (FDA) is reviewing applications from all three of these drugmakers, and those reviews are expected to wrap up by the end of the year.

A positive decision from the FDA could push these stocks up to new heights, but the agency is more concerned about public health than your stock portfolio's performance. Here's what everyday investors should know about upcoming events that industry experts will watch closely.

1. BridgeBio Pharma

At the moment, Pfizer's Vyndaqel is the only easy-to-swallow treatment approved by the FDA to treat folks with transthyretin amyloidosis cardiomyopathy (ATTR-CM). If all goes well for BridgeBio Pharma, Pfizer could have a rival to compete with before the end of the year.

The FDA is reviewing an application for Bridge Bio's acoramidis as a treatment for ATTR-CM, and a decision is expected on or before Nov. 29. A green light is far from guaranteed because, in 2021, the candidate failed to improve walking test distances compared to a placebo.

More recently, BridgeBio has produced evidence that shows acoramidis lowered patients' risk of death by 42% compared with a placebo after 30 months of treatment. It also reduced the risk of hospitalization due to cardiovascular events by 50% compared with a placebo.

Vyndaqel sales reached an annualized $5.3 billion in the second quarter, and it looks like the stock market doesn't expect BridbeBio to gain a significant share of the lucrative ATTR-CM space. At the moment, BridgeBio sports a relatively small $4.7 billion market cap because acoramidis' future is uncertain. Given the mortality benefit we've seen, I cautiously expect a positive decision this November that could cause this stock's modest market cap to soar higher.

2. PTC Therapeutics

PTC Therapeutics is a commercial-stage company with two approved therapies it markets itself. The company also receives royalties from Roche for Evrysdi, a gene therapy for the treatment of spinal muscular atrophy.

In the second quarter, PTC Therapeutics reported $118 million in product sales plus another $53 million in royalties from Roche. This wasn't enough to cover operating expenses, but a potential approval of Upstaza by the FDA could drive the company's bottom line into profitable territory.

Upstaza is a gene therapy for a rare disease called AADC deficiency. It's already approved in the EU, but the U.S. FDA is still reviewing its application. The agency is expected to announce its decision on or before Nov. 13.

With recurring revenue from three marketed products, Upstaza isn't as important to PTC Therapeutics as acoramidis is for BridgeBio. That said, a positive decision could push the stock higher. PTC Therapeutics' recent market cap is a modest $2.8 billion, which is awfully small for a company that could launch its fourth drug in the U.S. this year.

3. Vertex Pharmaceuticals

Cystic fibrosis (CF) is an inherited disease caused by faulty sodium channels in cells that line the lungs and other tissues. Before Vertex launched its CF first treatment in 2012, managing symptoms that steadily worsened was the best that patients could hope for.

These days CF is a manageable condition for over 68,000 patients who take one of Vertex's treatments. The company's lead drug, Trikafta, is a combination of tezacaftor and two other drugs that patients must take twice a day. It's the primary driver of product sales expected to pass $10.5 billion this year.

Vertex Pharmaceuticals stock could see a significant boost around the end of 2024. The FDA is reviewing a new, longer-lasting regimen that requires once-daily dosing. An approval decision is expected on or before Jan 2. While the date is scheduled for early next year, the government agency will probably announce its decision ahead of the New Year's Day holiday.

Trikafta patents are expected to maintain market exclusivity for Vertex through 2037 in both the U.S. and EU. If the FDA approves the company's new, longer lasting triplet therapy, it could tie up the market for CF drugs for even longer.

Time to buy?

FDA decisions could push these stocks a lot higher before the end of the year, but there are no guarantees. With strong profits in the present, Vertex Pharmaceuticals is the least risky of these three stocks that could soar before the end of the year.

Vertex is the best option for folks who don't have a huge risk tolerance, but BridgeBio Pharma has a lot more to gain if it earns a positive FDA approval decision this year. That said, BridgeBio is so risky that it's only an appropriate investment for folks who are very young or already have enough savings to retire.

Should you invest $1,000 in BridgeBio Pharma right now?

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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer and Vertex Pharmaceuticals. The Motley Fool recommends BridgeBio Pharma and Roche Ag. The Motley Fool has a disclosure policy.