According to the Zhito Finance APP, Wall Street financial giant JPMorgan recently released a research report stating a bullish outlook on the price trends of biotechnology companies in the U.S. stock market (i.e., Biotech) for 2025, expecting Biotech to outperform the large cap U.S. market; among these, Vertex Pharmaceuticals (VRTX.US), one of the leaders in U.S. Biotech, ranks first on JPMorgan's best Biotech stock list for 2025. Against the backdrop of the Federal Reserve starting to cut interest rates, biotechnology stocks are likely the best beneficiaries of the interest rate reduction cycle, with funds expected to shift from large technology giants whose stock prices have continuously surged in recent years and whose valuations are at historical highs to some biotechnology stocks that benefit from the interest rate cut cycle and whose valuations have been sluggish since 2022.

It is understood that in the latest research report released by JPMorgan, the most favored biotechnology companies for 2025, in addition to Vertex Pharmaceuticals ranking first on the stock list, JPMorgan is also optimistic about the price trends of the following Biotech stocks in the U.S. market for 2025. These Biotech stocks, aside from Vertex being large cap, all belong to small cap stocks in the U.S. with relatively high liquidity and active R&D progress, including: Traverse (TVTX.US), SpringWorks (SWTX.US), PTC Therapeutics (PTCT.US), Wave Life Sciences (WVE.US), Xenon Pharmaceuticals (XENE.US), Edgewise Therapeutics (EWTX.US), Blueprint (BPMC.US), and Roivant (ROIV.US).

JPMorgan stated that as regulatory progress/approval for Filspari in the indication of FSGS advances, the stock price of the small cap U.S. Biotech company Travere may double, and it can be seen that SpringWorks is clearly undervalued by the market just by the enormous opportunities presented by Ogsiveo. JPMorgan also mentioned that Wall Street significantly underestimates the valuation of mirdametinib. The institution continues to believe that the breadth of the biotechnology platform and pipeline opportunities under Wave (WVE) is undervalued.

JPMorgan also believes that Wall Street has long underestimated the sales potential of sepiapterin under PTC, and expects the regulatory interactions of the company to continue showing a positive trend in 2025, particularly relating to the regulatory interactions concerning votoplam.

JPMorgan stated that as various catalysts come into play, the risk of PTC’s assets will significantly decrease, and "the path to profitability should become clearer, thus enhancing the value of the stocks due to greater recognition of multiple business opportunities," the institution wrote in the report.

Meanwhile, as the Phase 3 clinical trial results for its drug azetukalner begin to be announced, JPMorgan believes that Xenon’s stock price will rebound significantly in 2025. The institution stated that if the data shows a positive trend, the product "will have very strong sales growth potential in the epilepsy adjunctive treatment market."

JPMorgan believes that Blueprint has "huge value to be uncovered" below its current enterprise value (EV), especially as Ayvakit's sales reach the management's expected peak of $2 billion. JPMorgan noted that the institution's analysts are more optimistic about the future prospects, predicting a peak sales figure of approximately $2.9 billion.

JPMorgan expects that the recently soaring stock price of Edgewise will continue to rise, stating in the report, "A series of key indicators show that the stock will continually set historical highs in 2025."

"Overall, as we move into and through 2025, we believe Edgewise could develop into a more mature/more diversified biotechnology company," the institution added in its research report.

Regarding Roivant, JPMorgan believes this biotech company has "very good growth potential" in 2025, with several core catalysts that may drive the stock price up, including the data from Immunovant (IMVT.US) batoclimab and Priovant brepocitinib, as well as its LNP litigation hearing. The institution also believes that investors have significantly underestimated the strong potential of the latter two in changing market investor sentiment.

Meanwhile, Vertex Pharmaceuticals, which ranks at the top of JPMorgan's 2025 U.S. biotech stock picks due to its highly profitable cystic fibrosis franchise and extensive R&D pipeline, is considered by JPMorgan as a core large cap biotechnology company in the U.S. market.

JPMorgan added, "We believe 2025 will be a vibrant year for Vertex Pharmaceuticals (VRTX), as its R&D product line becomes increasingly de-risked, and the company will be in a position admired by investors, capable of layering new products on top of its long-term CF business."

JPMorgan also mentioned in its research report that its latest survey of buying institutions showed that as many as 39% of the surveyed institutions expect biotechnology stocks to significantly outperform the U.S. large cap index in 2025, in contrast to about 23% of surveyed institutions expecting their performance to lag behind the index.

Another major Wall Street firm, Jefferies, recently released an investment report on the medical care industry showing that nearly three-quarters of institutional investors expect the benchmark index for global medical care stocks—the MSCI World Health Care Index—to rise significantly by the end of next year; in terms of sub-industries or segments, the Jefferies report indicates that under expectations of interest rate cuts from the Federal Reserve, most surveyed institutions (54%) believe that small and medium-sized pharmaceutical companies and biotechnology companies have the largest potential investment opportunities, while 15% and 13% of the surveyed institutions are more optimistic about large pharmaceutical companies as well as the tools and medical technology diagnostics fields.