Two Biotechs to Play in Uncertain Times
Here's why and how I am boosting my holdings in these biopharma stocks.
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The market continues to be mostly directionless early in 2026 after three years of outsized returns from the primary indexes. The major banks like Bank of America (BAC) and Citigroup (C) have kicked off fourth-quarter earnings season this week. My view continues to be the overall market is overbought. That said, this has been the case for some time now. Equities could continue to advance or at least muddle along despite myriad challenges outside of valuation metrics.
And when the music is still playing, one has to get up and dance to at least a few songs. Therefore, I continue to incrementally deploy the dry powder within my portfolio, primarily using covered-call orders. In today’s column, I will highlight a couple of biotech names I have added to my holdings recently.
Let’s start with Travere Therapeutics, Inc. (TVTX) . Back in late May of last year, I called out a recent 30% drop in the shares as a buying opportunity. The stock then moved up 150% over the next six months. But recently the equity has seen an additional 30% decline from recent highs.
After the big rally, the stock was in overbought territory. The Food and Drug Administration also extended Travere’s marketing application around a label expansion for its franchise drug Filspari to treat focal segmental glomerulosclerosis, or FCGS, by three months to mid-April. The agency needed more time to assess some recently submitted additional data. If approved, Filspari would be the first medication indicated for FSGS, a rare and serious kidney disorder.
Filspari is already approved to treat IgA nephropathy in both the U.S. and Europe. Filspari sales for its approved indication more than doubled in fiscal 2025 and the company should book revenues of just over $500 million when that fiscal year is fully reported. Travere is also becoming increasingly profitable. The label expansion is a wildcard and in a worst-case scenario, the company made need to conduct an additional study to garner approval for FCGS. With the options against the equity being lucrative, I have added to my stake in TVTX on the recent drop via covered-call orders.
Yesterday, I also added to my small stake in ImmunityBio, Inc. (IBRX) after the company posted impressive fourth quarter results. The stock is up just over 50% since I first highlighted this now midcap name in early September. Its franchise drug Anktiva was approved as part of a combination therapy to treat a subset of non-muscle-invasive bladder cancer in the spring of 2024.
This treatment has gained considerable traction in its short time on the market. Q4 results delivered an over 400% rise in revenue from the same period a year ago and climbed 20% sequentially from the previous quarter. The therapy was also approved in Saudi Arabia this week. Management noted that enrollment in a pivotal trial that could result in the submission of another Biologic License Application by the end of this year is ahead of schedule. I expect several upward price target revisions from analyst firms over the next week on this plethora of goods news.
At the time of publication, Jensen was long IBRX and TVTX.
