3 Biotech Stocks to Watch: Iovance, Neurocrine & Viking

The biotech sector, excluding GLP-1 leaders, faced investment challenges in 2024 due to high interest rates and tighter FDA approvals, but 2025 may offer opportunities driven by anticipated lower rates and AI integration. Iovance Biotherapeutics (IOVA) presents asymmetric upside potential despite current stock underperformance and cash burn post-Amtagvi FDA approval. Neurocrine Biosciences (NBIX) offers a more stable profile, leveraging Ingrezza profitability and a new drug, Crenessity, despite regulatory headwinds. Viking Therapeutics (VKTX) represents a high-risk, high-reward play in the competitive GLP-1 market, awaiting critical Phase 2 data for VK2735.

Analysis

The biotechnology sector, excluding GLP-1 market leaders Novo Nordisk and Eli Lilly, experienced significant capital constraints in 2024 due to a high interest rate environment and a more measured FDA approval process. However, the outlook for 2025 is framed with cautious optimism, contingent on potential monetary easing and efficiency gains from AI in drug development. The analysis presents a spectrum of investment risk through three distinct companies. Iovance Biotherapeutics (IOVA) represents a high-risk, distressed asset; despite achieving a first-in-class FDA approval for its TIL therapy Amtagvi, its stock has fallen 75.8% in 2025 amid concerns over slow sales and a cash burn rate of $300 million annually against $422 million in reserves. Neurocrine Biosciences (NBIX) is positioned as a more stable, profitable entity, with projected 2025 revenues of up to $2.6 billion from its flagship drug Ingrezza, though its new product, Crenessity, faces adoption hurdles from a black box warning. Viking Therapeutics (VKTX) is a highly speculative play on the GLP-1 market, with its valuation dependent on upcoming Phase 2 data for its candidate VK2735; the stock faces significant headwinds from 25.15% short interest and direct competition from market incumbent Eli Lilly.

Key Decisions for Investors

• Investors should monitor macroeconomic indicators, as potential interest rate cuts in 2025 are positioned as a primary catalyst for the capital-intensive small and mid-cap biotech sector.
• A risk-stratified approach is warranted: consider profitable firms like Neurocrine (NBIX) for relative stability, high-risk turnaround plays like Iovance (IOVA) for its asymmetric upside potential tied to commercial execution, and speculative names like Viking (VKTX) for exposure to the GLP-1 market ahead of its binary clinical data catalyst.
• For Iovance, closely track quarterly sales of Amtagvi and cash burn rates, as the company's viability depends on accelerating commercial adoption to sustain operations into the second half of 2026.
• For Viking Therapeutics, the upcoming Phase 2 results for VK2735 are a critical inflection point that will either validate its competitive claims against Eli Lilly or succumb to pressure from its significant short interest.