10 Cheap Biotech Stocks to Invest in Now

2. Agios Pharmaceuticals, Inc. (NASDAQ:AGIO)

P/E Ratio: 2.95 

Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) is a biopharmaceutical company located in Cambridge, Massachusetts. It focuses on studying and developing treatments related to cellular metabolism and blood-related diseases, with several therapies still in early-stage development.

Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) recently secured $1.1 billion in milestone payments following the FDA’s approval of vorasidenib, an anti-cancer drug developed by Agios Pharmaceuticals (NASDAQ:AGIO). This sum includes a $905 million payment from Royalty Pharma, stemming from the vorasidenib royalty purchase agreement. The company announced in May 2024 a $200 million payment from Servier, linked to Agios’s sale of its oncology division in 2021.

In addition to the milestone payments, the company has about $1.7 billion in cash, cash equivalents, and marketable securities as of Q3 2024. Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) plans to use this money, along with expected interest income and product sales, to prepare for the possible launch of its Pyrukynd treatment for thalassemia and sickle cell disease. Pyrukynd could be the first treatment approved for all types of thalassemia. The company also intends to use its financial strength to further develop its current programs and expand its pipeline when the right opportunities arise.

Meridian Growth Fund stated the following regarding Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) in its Q2 2024 investor letter:

“Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) is a leader in cellular metabolism and pyruvate kinase activation pioneering therapies for rare diseases. The stock appreciated in the quarter after it announced positive Phase 3 testing results of mitapivat, a therapy for adults with non-transfusion dependent thalassemia, an anemia blood disorder. With these results, we expect an FDA filing for the drug in the back half of this year for approval. The company also sold its 15% royalty on a cancer drug, which provided a boost to its cash position that could be used to further develop and market mitapivat. We trimmed our position in the company based on our valuation discipline as the share price appreciated.”