In the wake of a buoyant year of M&A activity in the biotech sector, 2024 promises more of the same. Drug manufacturers are eager to fortify their pipelines ahead of a mammoth patent cliff set to unfold by 2028.

By the end of this decade, the top 20 pharmaceutical behemoths could witness a colossal erosion of about $180 billion in sales, posits EY analysts. This impending revenue setback is a strong motivating factor behind recent high-profile acquisitions such as Johnson & Johnson’s $2 billion swoop for antibody-drug conjugate specialist Ambrx Biopharma, Pfizer’s $43 billion purchase of Seagen, and Sanofi’s $2.2 billion buyout of Inhibrx. On top of this, Novartis has just acquired German biotech firm MorphoSys for $2.9 billion.

If you’re on the hunt for the next lucrative buyout prospect in the lively biotech arena, cast your gaze upon these three stocks.

Viking Therapeutics (VKTX)

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When last I broached the subject of Viking Therapeutics (VKTX), the stock was fetching around $26 on Feb. 8. Fast forward to today, and it’s surged to $32.23, powered by surging demand for weight loss therapies. Furthermore, market chatter suggests VKTX might be an attractive target for acquisition by a heavyweight like Pfizer.

ADC Therapeutics (ADCT)

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Just a week ago, ADC Therapeutics (ADCT) was trading at $3.90, but it has since surged to $4.86 over favorable clinical trial results in a combination treatment for relapsed follicular lymphoma, as per a company communique. Pfizer CEO Albert Bourla affirms that ADCs have become one of the most captivating prospects in biotechnology. Furthermore, these treatment modalities have been heralded as a “new era in cancer therapy,” in line with observations by Dr. Giuseppe Banna, a Consultant Medical Oncologist specializing in lung and urology tumors, who also serves as the Molecular Lead at the Department of Oncology at Portsmouth Hospitals University.