Ozempic and Wegovy are the rock stars of the biopharmaceutical world. When celebrities talk about a prescription drug, it has reached the big time. And that's what has happened with Novo Nordisk's two blockbusters.
The success of Ozempic and Wegovy has also helped Novo Nordisk become a rock star for investors. Shares of the big drugmaker have skyrocketed nearly 240% over the last three years.
Don't worry if you think you've missed out on Novo Nordisk, though. Here are two healthcare stocks with big catalysts on the horizon.
1. Vertex Pharmaceuticals
Vertex Pharmaceuticals(NASDAQ: VRTX) doesn't have celebrities name-dropping its products, but it has achieved tremendous success. The big biotech markets the only therapies that treat the underlying cause of cystic fibrosis (CF). Vertex, along with its partner CRISPR Therapeutics, also now has the first (and so far only) CRISPR gene-editing therapy on the market.
We might not have to wait long for Vertex to add to its success story. The company has already submitted the first module to the U.S. Food and Drug Administration (FDA) in a rolling submission for suzetrigine (formerly known as VX-548) in treating acute pain. Vertex expects to complete the full filing by the end of the second quarter of 2024.
Acute pain represents a multibillion-dollar market dominated by anti-inflammatory drugs that are safe but have limited efficacy and opioids that are effective but have a high potential for addiction. Suzetrigine uses a novel method of alleviating pain (inhibiting a pain signal inhibitor called NaV1.8) that's effective and safe without addictive qualities.
Vertex also has another regulatory filing on the way this summer for its vanzacaftor/tezacaftor/deutivacaftor combination therapy targeting CF. This triple-drug combo was as good as or better than the company's top-selling CF drug, Trikafta, in phase 3 testing. Because of the vanzacaftor therapy's convenient once-daily dosing and its significantly lower royalty burden, I expect it will become Vertex's most profitable CF therapy yet if approved.
2. Viking Therapeutics
If you want a big opportunity in the obesity market along the lines of what Novo Nordisk has experienced, Viking Therapeutics(NASDAQ: VKTX) could be a great pick for you. And Viking's obesity drugs just might be better than Novo's Wegovy.
In February, Viking announced overwhelmingly positive results from a phase 2 study of VK2735. Patients receiving the experimental drug achieved up to 13.1% placebo-adjusted mean weight loss after 13 weeks of treatment. These results were more impressive than those seen in the clinical trials of Wegovy and Eli Lilly's Zepbound.
One month later, Viking reported more good news for VK2735. This time it was with an oral version of the weight-loss drug. The company announced positive results from a phase 1 study. Perhaps most encouraging was the oral formulation of VK2735 had low rates of gastrointestinal-related side effects.
But the next big catalyst for Viking could come from other pipeline candidates. The clinical-stage biotech expects to announce histology results from a phase 1 study evaluating VK2809 in treating nonalcoholic steatohepatitis (NASH) and fibrosis by mid-2024. It also should report results from a phase 1b study of VK0214 in treating rare neurodegenerative disease X-linked adrenoleukodystrophy (X-ALD).
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Keith Speights has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.
