Here’s what you should know to keep an eye on these rising biotech stocks:
Recently, investors in the biotech field have witnessed some impressive rallies. Notably, Nektar Therapeutics (NKTR) -6.16%)) and Mineralys Therapeutics (Mlys) -1.50%)) have both made headlines, with Nektar’s stock soaring over 100% during the month leading up to September 19th.
Just because these stocks have already surged doesn’t mean they can’t keep gaining. Let’s explore what’s driving the success of these companies and how they might continue to excel.
1. Nektar Therapeutics
Between August 18th and September 18th, shares of Nektar Therapeutics jumped by 108%. Investors are particularly optimistic about their leading candidate, Rezpegaldes Leukin, which acts as an IL-2 pathway agonist.
In a Phase 2B study involving patients with moderate to severe eczema, the highest dose of Rezpegaldes Leukin achieved a 30% improvement compared to placebo. This positions it as a strong contender against Dupixent, a blockbuster eczema treatment that generated $14.2 billion in sales for Regeneron Pharmaceuticals and partner Sanofi last year.
In the Solo 1 trial that helped approve Dupixent, 51% of patients saw 75% skin clearance after 16 weeks, compared to only 15% of the placebo group. Meanwhile, Nektar’s recent Phase 2B trial, called Rezolve-AD, showed that 42% of participants reached the same level of clearance, while 17% did so in the placebo group.
The data indicates that Rezpegaldes Leukin has the potential for further improvement beyond that initial 16-week mark. In fact, a group of patients who continued treatment for 24 weeks in the Rezolve-AD study achieved 75% skin clearance in 62% of cases.
Currently, Nektar’s market cap stands at about $989 million, which seems low for a company that’s pushing to establish a major eczema treatment in upcoming clinical trials. It’s worth noting, though, that this isn’t the first time Nektar stock has seen dramatic highs followed by significant drops. The company’s been around since 1990, but has no current products on the market.
The potential for a breakthrough with Rezpegaldes Leukin could significantly boost Nektar’s valuation, but the company hasn’t launched its Phase 3 program yet. So, if you’re sensitive to risk, proceed with caution regarding this stock.
2. Mineralys Therapeutics
From the closing bell on August 18 to noon on September 19, shares of Mineralys Therapeutics surged by 155%, attributed to strong clinical trial results that caught investor attention.
The company’s lead candidate, Lorundrostat, targets hypertension and aims to help those who struggle with blood pressure management despite existing treatments. This means potential for significant market impact.
On September 6, Mineralys reported that Lorundrostat effectively reduced systolic blood pressure by 9.1 mmHg in a Phase 3 trial, which is comparable to Baxdrostat, a similar treatment from AstraZeneca that recently concluded its own Phase 3 trial with a 9.8 mmHg reduction.
Instead of waiting for a potential acquisition offer, Mineralys plans to submit an application to the U.S. Food and Drug Administration (FDA) either late in 2025 or early 2026. AstraZeneca is on a similar timeline but with greater resources at play.
As of June, Mineralys had $325 million in cash after burning through about $85.5 million in the first half of 2025. The company recently raised $288 million through a secondary offering, giving it ample runway while waiting for the FDA’s review of Lorundrostat.
With a current market capitalization of around $3 billion, if Lorundrostat reaches commercial stages by 2026, there could be even more upside. However, with competitors closing in, any delays on Mineralys’ part could lead to significant inventory declines. If the prospect of risk makes you uneasy, it might be wise to keep your distance on this one.
