These 3 Biotech Stocks Have Room to Grow

As biotech stocks sink amid concerns over what RFK Jr.’s time as health secretary might mean for drug and vaccine development, there are plenty of opportunities in the space.

Growth in the sector will be powered by a mix of artificial intelligence-powered (AI) drug discovery; breakthroughs in innovative treatments, including CRISPR-based therapies; and increased M&A activity, according to WisdomTree. 

In this article we look at three companies due to report Q4 results next week: BioNTech [BNTX], Legend Biotech [LEGN] and Protalix [PLX]. We discuss key growth drivers and identify potential headwinds in the months ahead. 

BioNTech 

The German drugmaker completed its $800m acquisition of Chinese biotech company Biotheus on February 3. 

The acquisition will see BioNTech get its hands on BNT327, a candidate in treating breast cancer. Overall survival data released in December indicated that BNT327 could provide competition for Keytruda, which brought in $29.5bn for Merck [MRK] last year. 

BioNTech is due to deliver its Q4 results on March 10.

Legend Biotech 

The cell therapy biotech’s main drug is Carvykti, which is used to treat adults who have multiple myeloma, a cancer of the bone marrow. 

Sales of Carvykti soared 87.6% to $286m in Q3 as Legend expanded its coverage to Switzerland, its fifth market outside the US. 

Preliminary sales data released in January show that Carvykti sales brought in $334m in Q4, up 16.78% sequentially and 110.06% year-over-year. Legend is due to report earnings on March 11. 

Protalix

Based in Karmiel, Israel, this small biotech’s flagship treatment is Elfabrio, a drug taken by adults with Fabry disease, a rare genetic disorder caused by an enzyme deficiency where fat deposits build up in the heart, kidneys and nervous system. If not treated, it can result in organ failure. Elfabrio is one of Protalix’s two FDA-approved drugs and was given the green light in May 2023. 

Revenue from the two drugs jumped 75% to $17.8m in Q3. Q4 earnings are due to be reported on March 13. 

BNTX vs. LEGN vs. PLX: Biotech’s Rise and Falls

Given RFK Jr.’s stance on vaccines, it is unsurprising that BioNTech, which developed a Covid-19 vaccine with Pfizer [PFE], has seen its share price fall from its 52-week high of $131.49, set on September 17, to $109.65 on March 4. BNTX is up 20.79% in the past 12 months but down 3.6% since the start of the year. 

The Legend share price is down 48.15% over the past 12 months but has gained 4.43% since the start of the year. The Protalix share price has posted gains of 43.21% and 23.4% over the respective periods. 

Here is how their fundamentals compare. 

Source: Stockanalysis.com

It can be difficult to value stocks that are not yet profitable, but one conclusion that could be drawn is that BNTX is overvalued compared to LEGN and PLX, given that BioNTech has the highest P/S ratio and the only negative revenue forecast for the next couple of years. 

The Investment Case for BioNTech 

The Bull Case

BioNTech became a household name with its Covid-19 vaccine, but, “with the pandemic in the rear-view mirror, investor focus is increasingly shifting to BNTX’s oncology business,” Truist Securities analyst Asthika Goonewardene wrote in January. 

“2025 is set up with potentially stock-moving read-outs for these key assets,” added Goonewardene, igniting coverage with a ‘buy’ rating. The firm’s price target of $172 implies an upside of 56.86% from the most recent closing price of $109.65.

The Bear Case

A number of phase-3 trials for BNT327 are underway as of March 2025. As with any biotech developing drugs, poor data readouts could disappoint investors. This means the stock could be volatile.

The Investment Case for Legend

The Bull Case

Goldman Sachs analyst Ziyi Chen reiterated a ‘buy’ rating for LEGN stock at the end of January, arguing that its preliminary toppling numbers reflect “better-than-expected global capacity release”. Chen’s price target of $84.28 was lowered from $92.97 but still implies an upside of 148.03% from the most recent closing price of $33.98.

Carvykti is the only drug to be approved by the FDA as a second-line treatment for multiple myeloma. This means it is the first drug patients are put on if initial treatment fails. 

The Bear Case

Legend has been ramping up production capacity for Carvykti, which was developed in partnership with Johnson and Johnson [JNJ], and has a goal of producing 10,000 annual doses by the end of 2025. However, if manufacturing hits a bump, then it could potentially impact Legend’s ability to meet demand and reach its target. 

The Investment Case for Protalix 

The Bull Case

HC Wainwright analyst Raghuram Selvaraju believes “Protalix may achieve sustainable profitability from this year forward, driven mainly by the Elfabrio royalty stream.”

In a note to clients in early February, Selvaraju maintained a ‘buy’ rating and raised the price target from $10 to $15, which implies a mammoth upside of 546.55% from the most recent closing price of $2.32.

The Bear Case

Protalix CEO Dror Bashan wrote in his 2025 letter to shareholders that the company is satisfied with growth in its three revenue streams: sales of Elfabrio to Pfizer and Italian drugmaker Chiesi, as well as sales of Uplyso, used to treat Gaucher disease, to Brazil.

Despite the optimism, it could be argued that Protalix is over-reliant on Elfabrio for revenue. If demand for the drug were to drop, then this could have a significant impact on the company’s ability to generate money. 

Conclusion 

Beyond their earnings next week, BioNTech, Legend Biotech and Protalix all have plenty of room for growth in 2025. However, the nature of drug development and trial readouts means biotech stocks can be high-risk, high-reward investments.