8 High Growth UK Stocks to Invest In

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1. Roivant Sciences (NASDAQ:ROIV)  

5-Year Revenue CAGR: 121.82%  

No of Hedge Funds: 62

Roivant Sciences (NASDAQ:ROIV) is a biopharmaceutical company that focuses on rapidly developing innovative therapies through its unique “Vant” model. This model involves creating or acquiring subsidiary companies focused on specific disease areas or technology platforms. Roivant Sciences (NASDAQ:ROIV) aims to accelerate drug development while reducing the time and cost of bringing new therapies to market.

Roivant Sciences (NASDAQ:ROIV) has a broad pipeline of drugs across various therapeutic areas, including neurology, oncology, and dermatology. The company has established itself as a key player in the biotech sector through its innovative approach and strategic partnerships.

On September 18, Roivant Sciences (NASDAQ:ROIV) announced the sale of its subsidiary, Dermavant Sciences, to Organon & Co. for $1.2 billion. The deal includes the company’s flagship product, VTAMA cream, which is FDA-approved for plaque psoriasis, a common skin condition, and is currently under review for atopic dermatitis, a chronic skin condition. This acquisition is a strategic win-win for both companies, as it enhances Organon’s dermatology portfolio and allows Roivant Sciences (NASDAQ:ROIV) to monetize quickly through sales and retaining potential payments and royalties.

The deal includes an upfront payment of $175 million, a $75 million payment upon regulatory approval for atopic dermatitis, and fees of up to $950 million when achieving specific commercial milestones. Additionally, Roivant Sciences (NASDAQ:ROIV) will receive tiered royalties on net sales.

Roivant Sciences’ (NASDAQ:ROIV) pipeline is promising, with several valuable assets, including Immunovant, Brepocitinib, Genevant Sciences, and Namilumab. Industry analysts have reached a consensus on the stock’s Buy rating, with an average target price of $17.06 that suggests a 35.63% upside potential from its current levels.

While we acknowledge the potential of Roivant Sciences (NASDAQ:ROIV) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ROIV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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