Building Monster Returns: Two Biotech Giants Worth the Hold

The Case for Long-Term Biotech Positions

The biotech sector presents a unique paradox for investors. Smaller, pre-profitability companies in this space can deliver transformative gains for those patient enough to hold through volatility and uncertainty. Two players stand out as particularly compelling for long-term portfolio construction: CRISPR Therapeutics (NASDAQ: CRSP) and Viking Therapeutics (NASDAQ: VKTX). Both organizations operate at the forefront of their respective therapeutic domains and possess clinical pipelines that could reshape patient care while rewarding shareholders with significant upside potential.

CRISPR Therapeutics: Gene Editing’s Real-World Promise

The Reality of Revolutionary Medicine

CRISPR Therapeutics represents the frontier of precision medicine, yet investors must understand both the opportunity and the obstacles. The company’s flagship therapy, Casgevy, broke new ground as the first CRISPR-based gene-editing treatment to secure regulatory approval. However, this breakthrough comes with practical limitations: the therapy carries a substantial price tag of $2.2 million and requires administration only at specialized treatment centers. Gaining coverage from insurers and payers will remain an ongoing challenge.

Where True Value Emerges

Beyond these hurdles lies tremendous promise. Casgevy addresses two devastating rare blood disorders—sickle cell disease and transfusion-dependent beta thalassemia—by offering what traditional medicine never could: a one-time curative approach. Patients typically endure lifelong transfusion dependency; Casgevy potentially eliminates this burden entirely.

The company’s development pipeline reveals why patient hold periods could yield monster returns. CTX310 targets cardiovascular metabolic dysfunction by enabling permanent reductions in LDL cholesterol and triglycerides through a single treatment. Unlike conventional pharmaceuticals requiring lifelong adherence, this approach offers permanent improvement. Similarly, SRSD107, a long-acting anticoagulant in development, aims to replace daily medication regimens with twice-yearly dosing while eliminating severe bleeding side effects associated with current options.

Each clinical success in this pipeline could unlock substantial shareholder value as Casgevy’s commercial momentum accelerates.

Viking Therapeutics: Riding the Weight Management Wave

Entering a Massive Market Opportunity

Viking Therapeutics operates in one of healthcare’s most explosive growth areas: obesity and weight management. The therapeutic class has demonstrated compelling efficacy profiles, yet remains relatively underpenetrated. While the company will compete against pharmaceutical giants, its lead candidate VK2735 has already demonstrated superior efficacy in phase 2 clinical studies.

Dual Approach, Dual Advantage

VK2735 functions as a dual agonist, activating both GLP-1 and GIP hormonal pathways—a mechanism that has proven effective for metabolic disorders. What distinguishes Viking’s approach is its development strategy. Beyond the subcutaneous injection formulation currently in late-stage trials, the company simultaneously developed an oral tablet version. This distinction matters significantly: many patients prefer pill-based treatments, and oral formulations offer manufacturing and distribution advantages that could drive adoption at scale.

The Broader Pipeline Picture

Viking’s forward-thinking strategy extends beyond VK2735. The company plans to initiate clinical trials for an additional dual agonist targeting amylin and calcitonin pathways. VK2809, its metabolic dysfunction-associated steatohepatitis candidate, successfully completed mid-stage testing in another high-unmet-need indication. This staggered pipeline approach positions Viking to capture multiple market opportunities sequentially over the coming years.

The Risk-Reward Calculus

Both companies carry genuine clinical and regulatory risk. Setbacks in ongoing trials could materially impact stock performance. However, investors willing to hold through uncertainty and volatility may find that successful mid- and late-stage readouts deliver the monster returns characteristic of early-stage biotech breakthroughs. The opportunity set—transformative gene-editing therapies and obesity medicines addressing massive unmet needs—suggests substantial upside potential for disciplined, long-term holders positioned before these catalysts fully materialize.

For investors comfortable with biotech’s inherent volatility, both CRISPR Therapeutics and Viking Therapeutics merit serious consideration as core holdings in a risk-appropriate portfolio.