The Panic-Proof Portfolio (Stockchase Research) Agios Pharmaceuticals Inc. AGIO-Q TOP PICK May 20, 2025

AGIO is a biopharma company focusing on various cancer treatments.  It continues to advance its pipeline of new rare disease treatments include one for anemia blood disorder.  It has recently sold a royalty for one of its drugs that is increasing cash reserves dramatically.  We like that it trades at 3x earnings, 1.2x book and supports a ROE of 53%.  We recommend setting a stop-loss at $21, looking to achieve $43 -- upside potential of 28%.  Yield 0%

We reiterate AGIO as a TOP PICK.  The developer of cancer treatment drugs expects two more products to go commercial over the next year- each with the potential to grow cash flows substantially.  It trades at 3x earnings, 1.2x book and supports and supports a robust 57% ROE.  We recommend trailing up the stop (from $21) to $25, looking to achieve $41 — upside potential of 28%.  Yield 0%

Our PAST TOP PICK with AGIO has triggered its stop at $25.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment loss of 23%, when combined with our previous guidance.    

We reiterate AGIO as a TOP PICK.  The pharma company continues moving forward on medications in the treatment of sickle cell disease and is a a lead candidate for FDA approvals.  It trades at 3x earnings, 1.4x book and supports a 60% ROE.  We recommend trailing up the stop (from $24) to $27, looking to achieve $46 -- 28% upside potential.  Yield 0%