Problems with the central nervous system are the second leading cause of death globally, the World Health Organization determined in 2022. One reason for this situation is that it’s extremely difficult to develop effective treatments for these disorders because of the complexity of the CNS, European biotech news website Labiotech reported last year. Further, the blood-brain barrier that stops damaging substances from entering our brains also prevents many drugs from impacting the organ.
In general, finding safe, effective drugs that insurers will pay for and that will be better than standard-of-care treatments is an extremely long, arduous process that’s unlikely to succeed. Given the enhanced difficulties involved with developing neurological treatments, companies in that space have an even harder road to traverse.
But the good news for investors is that, if companies do develop successful neurological drugs, they probably won’t face much tough competition. With that in mind, here are the three best neuroscience biotech stocks to buy now.
Vertex (VRTX)
Pain is a neurological phenomenon. Consequently, Vertex’s (NASDAQ:VRTX) moderate-to-severe acute pain treatment, called suzetrigine, can be viewed as a neurological drug. Importantly, suzetrigine is a non-opioid pain medication, making it much less addictive than the powerful opioid pain treatments widely used today.
Vertex CEO Reshma Kewalramani explained that his company’s drug can “potentially fill the gap” between very safe but fairly weak painkillers and strong, opioid painkillers that can easily become addictive.
In a Phase-3 trial, suzetrigine successfully reduced patients’ surgical and non-surgical pain meaningfully more than a placebo. However, it failed to lessen patients’ pain significantly more than a combination of the opioid drug hydrocodone and acetaminophen.
Nonetheless, GlobalData has estimated that the drug will generate a significant $1.4 billion of revenue for Vertex in 2030. Other analysts believe that the treatment could generate multi-billion dollar peak annual revenue.
Vertex hoped to finish submitting the drug to the FDA for its approval as a treatment for “moderate to severe pain” by the end of last quarter.
Given the strong potential of Vertex’s non-addictive painkiller, I view it as one of the best biotech stocks to buy at this point.
Eisai (ESAIY)
As I’ve noted in previous columns, Eisai’s (OTCMKTS:ESAIY) Alzheimer’s drug, Leqembi, actually improved the cognition capabilities of 60% of patients thought to be in the early stages of the disease.
Meanwhile, in May Eisai began a rolling submission of a Biologics License Application (BLA) for a subcutaneous version of the drug. If approved, this version, unlike the intravenous version that’s already being utilized, can be administered to patients in doctors’ offices and in homes. Additionally, the drug can be delivered more quickly via the subcutaneous mechanism than through IV, Eisai reported. Given these points, I believe that the demand for Leqembi will greatly increase after the subcutaenous version of it is released.
By fiscal 2026, Eisai predicts that the drug’s sales can reach almost $2 billion in its fiscal year that ends in March 2027 and $8.8 billion in its fiscal year that ends in March 2033.
Given Leqembi’s strong efficacy and the lack of strong competition in the Alzheimer’s treatment space, I believe that the drug’s revenue can significantly exceed those targets. Consequently, I believe that the company, which currently has a market capitalization of almost $12 billion, is significantly undervalued and is one of the best biotech stocks to buy now.
NeuroOne Medical (NMTC)
NeuroOne (NASDAQ:NMTC) develops products using thin film electrode technology. Its offerings are being used to facilitate electroencephalograms or EEGs which determine the extent of electrical activity in the brain. NeuroOne’s products are also being used in conjunction with spinal cord stimulation and brain stimulation.
Provoiding significant validation for NeurOne and its products, the firm partners with two very prestigious hospitals, Mayo Clinic and Cleveland Clinic. Additionally, the firm collaborates with a huge medical device company, Zimmer Biomet (NYSE:ZBH).
Also impressively, NeuroOne is only nine healthcare firms whose stock is owned by the Mayo Clinic.
Moreover, NeuroOne is growing at an impressive rate as its product revenue jumped to $1.38 million last quarter compared to $466,000 during the same period a year earlier.
On the date of publication, Larry Ramer held a long position in ESAIY. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.