Persistent volatility has plagued the S&P 500 for much of 2025, prompting widespread caution among many investors amid the uncertainties of trade battles, tariffs, domestic policy, and more. Investors might remember that many of the biggest rallies take place during these volatile periods, and there may be potential to win big gains for those with at least a moderate tolerance for risk.
Healthcare firms are already known for being volatile, with smaller companies in particular experiencing significant spikes and dips alongside news of successes or failures in the clinical drug development space. Three companies stand out as we reach the midpoint of 2025 for their massive growth potential.
Analysts believe each of the stocks below has the potential to at least double in price, although the three firms also carry varying levels of risk.
Major Partnership With Novo Nordisk Could Boost Septerna
Septerna Inc. (NASDAQ: SEPN) is a clinical-stage biotechnology firm developing G protein-coupled receptor (GPCR) oral small molecule drug candidates for applications in the areas of endocrinology, immunology and inflammation, and metabolic diseases. The firm recently secured a major partnership with Novo Nordisk A/S (NYSE: NVO) to develop novel drug treatments for obesity and type 2 diabetes as competition for the larger firm's weight-loss injection drug Wegovy mounts.
Septerna is set to receive around $200 million in near-term payments on a deal that may eventually be worth more than $2 billion.
Novo Nordisk likely sought out Septerna for its work in GPCRs and drug development platform, both of which distinguish the smaller company from its rivals. The $200 million payment, though not notably large compared to similar partnerships across the industry, is nonetheless a boon for Septerna's cash position and should allow the company substantial flexibility in its research and development operations.
Three out of four analysts have rated Septerna stock a Buy. Given that shares of the company have fallen by about 58% year-to-date (YTD), the consensus price target of $27 per share is roughly triple the current price point.
Promising Trial Data and Ongoing Studies Fuel Optimism in Intellia
Genome editing firm Intellia Therapeutics Inc. (NASDAQ: NTLA) develops in vivo programs and other therapies aiming to address hemophilia, autoimmune diseases, and cancers, among others. In mid-May 2025, the company reported positive two-year follow-up data for its ongoing Phase 1 trial of nex-z for the treatment of a rare organ and nerve disorder, ATTRv-PN.
The company is also engaging in multiple other trials for potential treatments for hereditary angioedema and ATTR with cardiomyopathy.
Though Intellia's cash position fell from the end of 2024 to the close of the first quarter this year, it retained an impressive $707 million in cash holdings as of March 31. This is likely sufficient to fund operations through early 2027. While net losses increased modestly year-over-year (YOY), net losses per share actually narrowed over the same period.
Fourteen out of 21 analysts provided a Buy rating for Intellia shares, the most recent of which was reiterated in May by HC Wainwright and Chardan Capital. However, there is a mixture of opinions among analysts, with Guggenheim and Citigroup recently maintaining ratings while lowering price targets.
Still, the consensus price target for NTLA shares is $36.90, roughly quadrupling the stock's current price.
Novavax's FDA Approval Sends Mixed Messages
Novavax Inc. (NASDAQ: NVAX) may be the highest-risk play of these three firms due to uncertainty surrounding the FDA and COVID-19 vaccines. On one hand, the FDA's recent full approval of Novavax's protein-based COVID-19 vaccine is a major benefit for the firm. It unlocks a $175 million milestone payment from Sanofi SA (NASDAQ: SNY) and positions Novavax as the sole provider of a non-mRNA option currently available.
On the other hand, the FDA also issued significant restrictions that question the vaccine's ability to be widely available.
Shares of NVAX spiked by almost a quarter on the news but gave up most of those gains within three days. The stock remains down overall by about 16% YTD. Still, four out of seven analysts believe NVAX shares are a Buy, and the consensus price target of $19 per share could represent 167% upside potential.