3 Hot Biotech Stocks to Watch

Biotech stocks are always on the radar of investors. Imagine investing in a $1 stock that skyrockets to $20, $30, or even higher, thanks to innovative breakthroughs that turn it into a billion-dollar company or lead to a buyout by a major pharmaceutical company. This scenario recently unfolded with Bright Minds Biosciences (NASDAQ: DRUG), which surged to a 52-week high of $38.49 in just two days, rising from a low of $1.02. I’ve compiled a list of three stocks, including DRUG, that have the potential to soar.

1. Bright Minds Biosciences (NASDAQ: DRUG)

Brigh Minds Biosciences has been under the spotlight this week. Indeed the company’s stock price had a massive run, reaching $38.49, up from $1.02 within only two days. Amongst the investors, Perceptive Advisors LLC, a leading investment firm, made a notable move by acquiring 8,194 shares of Bright Minds Biosciences Inc. (NASDAQ: DRUG) on October 14. The shares were purchased at $2.51 each, marking a new addition to the firm’s portfolio. 

Bright Minds Biosciences has a strong foundation in translational science, which guides its drug development efforts. The company focuses on a library of proprietary compounds that target specific serotonin receptors, like 5-HT₂C, 5-HT₂A/C, and 5-HT₂A (I’ll explain what these mean below). By using advanced molecular modeling and smart drug design, Bright Minds carefully tests these compounds in preclinical brain function models. This approach helps them find the most promising candidates for clinical trials. Through a data-driven process, the company aims to lower risks and increase the chances of success as their compounds move toward human testing.

Comparatives include GW Pharmaceuticals that was acquired by Jazz Pharmaceuticals for $7.2 billion due to its epilepsy treatment Epidiolex. Similarly, Zogenix, with its drug Fintepla for Dravet syndrome, was purchased by UCB for $1.9 billion, and Arvelle Therapeutics was acquired by Angelini Pharma for $960 million for Cenobamate, focused on treating focal seizures.

2. NurExone (TSXV: NRX, OTCQB: NRXBF, FRA: J90)

NurExone Biologic (TSXV: NRX, OTCQB: NRXBF, FRA: J90) is advancing regenerative medicine with its innovative, non-invasive therapies for Central Nervous System (CNS) injuries. Their lead product, ExoPTEN, has shown promising results in preclinical studies, restoring motor function in 75% of rats with acute spinal cord injuries. What makes ExoPTEN unique is its intranasal delivery, offering a less invasive option than traditional treatments.

A key finding is that ExoPTEN remains effective up to a week after injury, extending the treatment window and giving more patients a chance to recover. Dr. Lior Shaltiel, CEO of NurExone, highlights how this could expand patient eligibility, improve outcomes, and ease clinical trial recruitment. With 500,000 new spinal cord injuries reported globally each year, this approach has significant potential to change lives.

Current treatments for optic nerve damage, like glaucoma, focus on preventing further damage but can’t repair what’s already been done. NurExone Biologic is working on a new approach with exosome-loaded drugs like ExoPTEN, which could actually help repair damaged nerves in the eye. Early studies suggest that ExoPTEN could offer new hope for conditions once thought to be irreversible, such as vision loss from glaucoma.

The global market for optic nerve treatments was valued at $3.4 billion in 2021 and is projected to grow to $5.3 billion by 2031. The stock currently trades around $0.50, offering a great opportunity to acquire a good stake before any substantial stock price increase. 

3. BioVaxys (CSE: BIOV, OTCQB: BVAXF, FRA: 5LB)

BioVaxys (CSE: BIOV, OTCQB: BVAXF, FRA: 5LB) is a clinical-stage biopharmaceutical company focused on developing new immunotherapies to improve patients’ lives. They use their DPX immune-educating technology and HapTenix© platform to treat cancers, infectious diseases, peanut allergies, and other immune-related conditions.

BioVaxys is currently undervalued relative to its peers, especially when considering its significant acquisitions and investment in research. The company has obtained the intellectual property of IMV, a company that once had a market cap of $330 million, for a mere $1 million. This includes $750,000 in cash and $250,000 in shares, which represents an acquisition of high-value assets for a fraction of the cost. Moreover, IMV had invested over $200 million in research and development, supporting two Phase 2B clinical assets. BioVaxys also has the backing of high-profile life science investors and buy ratings from four major investment banks, further underscoring its potential. 

For instance, Johnson & Johnson acquired Ambrx for $2 billion, with a notable 105% premium,AstraZeneca acquired Amolyt Pharma for $800 million, and Novartis purchased Morphosys for €2.7 billion, both targeting specialized treatments. Gilead’s acquisition of Cymabay for $4.3 billion with a 27% premium. Imagine investing now while the stock price is just $0.04…