Jefferies sees huge upside potential in these two stocks

Analysts at Jefferies have identified two smaller biotech companies that could see their stocks appreciate significantly in the coming years. With policy changes in the US, such as expected deregulation and lower corporate taxation, there are new opportunities for growth and investment in the biotech sector.

Which 2 stocks are involved? 👇

Two of these companies, Metagenomi and Structure Therapeutics, are leveraging advanced technologies and are on the cusp of major breakthroughs in their research, according to Jefferies analysts. With the anticipation of regulatory loosening and a potential surge in biotech investment, these stocks appear to be promising opportunities for investors looking for high growth potential in the coming years. In this article, we look at the key projects of these companies and their prospects for success in the field of biotech innovation.

Metagenomi $MGX: Revolutionizing gene therapy

Metagenomi is taking a pioneering approach in the field of metagenomics to develop gene editing tools. This technology enables the identification of natural microbial systems and their adaptation for therapeutic purposes. The company's flagship project is MGX-001, a drug targeting hemophilia A. The results of a recent study in primates showed a long-term improvement in factor VIII activity, opening the way to clinical trials in humans.

Another pillar of Metagenomi's strategy is a partnership with Ionis Pharmaceuticals that combines gene editing with RNA therapeutics. This collaboration focuses on the treatment of cardiometabolic disorders such as transthyretin amyloidosis and refractory hypertension. Both projects are in the optimization phase and the first development candidates could be nominated by 2025.

Jefferies analyst Maury Raycroft considers Metagenomi's stock to be significantly undervalued and estimates its upside potential at more than 1,000%. In particular, he points to the company's broad platform, which allows for the development of new drugs and the formation of strategic partnerships, which could significantly boost the stock's value.

Structure Therapeutics $GPCR: Innovations in the treatment of chronic diseases

Structure Therapeutics is focused on developing drugs targeting G-protein coupled receptors (GPCRs), the largest family of membrane proteins in the human body. The company seeks to harness the untapped potential of these receptors and bring new treatment options for chronic diseases such as obesity and type 2 diabetes.

Structure Therapeutics' lead project, GSBR-1290, is a small-molecule GLP-1 receptor agonist that has been proven to reduce weight and regulate blood sugar levels. Clinical studies have progressed to Phase 2b, with previous Phase 2a results confirming strong efficacy and good tolerability. Phase 2b results are expected in late 2025, which could confirm the Company's leadership position in novel small molecule therapeutics.

In addition to GSBR-1290, the company is developing another drug targeting the amylin receptor that could provide a breakthrough in the treatment of obesity. Jefferies analyst Roger Song praises the robustness of the company's pipeline and its potential to become a leader in this area. He estimates that Structure Therapeutics stock could be up more than 130% over the next year.

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Source: Yahoo Finance, Jefferies.