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Prediction: These 3 Healthcare Stocks Will Soar in 2025
AMGNAmgen(AMGN) The Motley Fool·2025-01-04 11:48

Amgen (AMGN) - Amgen's stock experienced a significant drop in late November due to phase 2 clinical trial results for its weight loss candidate, MariTide, which showed a 20% body weight loss after 52 weeks, below the expected 25% [2][3] - The market's reaction to the trial results is seen as an overreaction, creating a buying opportunity for investors who view MariTide as a promising treatment alternative to weekly injections from Eli Lilly and Novo Nordisk [4][5] - Amgen trades at 13 times forward earnings, offers a 3.6% yield, and is developing a GLP-1/GIPR combination treatment that could compete with Eli Lilly and Novo Nordisk [6] Eli Lilly (LLY) - Eli Lilly's shares have risen by 32% over the past year, with potential for further growth in 2025 due to multiple catalysts, including label expansions for tirzepatide (marketed as Zepbound and Mounjaro) for reducing type 2 diabetes risk [7] - Clinical readouts for tirzepatide in treating metabolic dysfunction-associated steatohepatitis and progress in other pipeline programs, such as retatrutide and orforglipron for weight loss, could drive the stock price [8][9] - The company's financial results are expected to remain strong, supported by the rapid sales growth of Zepbound and Mounjaro, as well as newer products like Kisunla for Alzheimer's, which received regulatory approval in July [10][11] Summit Therapeutics (SMMT) - Summit Therapeutics' stock surged by 583% in 2024, driven by positive phase 3 study results for ivonescimab in treating non-small cell lung cancer (NSCLC), conducted by its partner Akeso [12] - The company is expected to report results from its own late-stage study of ivonescimab in combination with chemotherapy as a second-line treatment for NSCLC, which could lead to regulatory approval [13] - Summit is also conducting a phase 3 study of ivonescimab in combination with chemotherapy as a first-line treatment for NSCLC and plans to initiate another late-stage study of the drug as a monotherapy in the first-line setting [15] - With a market cap of around $13.5 billion, positive late-stage results could significantly increase the company's valuation [16]