To The Moon

For those investors who have the patience to wait it out, there are a couple of healthcare stocks on the market that might just offer Novo Nordisk-like returns, thanks to some potential catalysts that could seriously outperform the market.

These stocks have their risks, but the upside is too tempting to pass up.

1. $CRISPR Therapeutics AG(CRSP)$

Catalyst: The company's first product is about to hit the market

CRISPR Therapeutics (CRSP) has been on the scene since 2016, dedicated to perfecting and commercializing CRISPR gene-editing technology. After a lengthy development and FDA approval process, their sickle cell disease treatment developed with Vertex Pharmaceuticals has finally got the green light. Revenue is on the horizon.

Analysts reckon CRISPR Therapeutics will rake in just $55 million this year, but anticipate sales soaring past $1 billion by 2027. The company also boasts a pipeline with five clinical trial products targeting diabetes type 1, cardiovascular diseases, autoimmune diseases, and cancer. The long-term investment potential for CRISPR hinges on its ability to get these new products market-approved.

CRISPR's stock price has plummeted nearly 80% from its peak, currently valuing it just over $4 billion.

2. $Hims & Hers Health Inc.(HIMS)$

Catalyst: Skyrocketing growth, with or without GLP-1

During the pandemic, telemedicine became a hot investing trend. While some, like $Teladoc Health Inc.(TDOC)$ , didn’t meet high market expectations, Hims & Hers Health did just that—its user base expanded from 391,000 in Q1 2021 to 1.86 million in Q2 2024.

Management noted during their Q2 earnings call that while they plan to continue selling these compound medications, this venture remains a grey area legally, opening them up to potential lawsuits. Recent doubts about the future of GLP-1 compound product sales have nudged the stock price down, valuing the company at just under $4 billion.

Despite the hullabaloo over GLP-1, the market might be overestimating its role in the company’s success. Hims & Hers only started selling GLP-1 in May this year, yet Q2 total sales surged 52% year-over-year to $315.6 million, with just around $15 million coming from GLP-1. In other words, GLP-1 is a nice bonus, not a make-or-break factor for the company’s success or its stock variability.

Even if they lose the right to sell these compound products, Hims & Hers could still thrive. The company introduced a new class of weight loss products in December 2023 and management is eyeing $100 million in sales by 2025.