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The Case of the Beaten-Down Biotechs: Why Viking and TransMedics Could Be Your Next Big Score
The stock market’s back alleys are littered with the carcasses of once-high-flying biotech darlings—companies that soared on hype before crashing back to earth. But for investors with the stomach for risk and the patience of a saint, these beaten-down stocks can be golden tickets. It’s the classic “buy low, sell high” play, but with a twist: you’re betting on science, market sentiment, and a whole lot of volatility.
Enter Viking Therapeutics (NASDAQ: VKTX) and TransMedics Group (NASDAQ: TMDX)—two biotech stocks that have taken a beating in 2025 but still pack serious potential. Viking’s stock is down 35% year-to-date, while TransMedics has shed 31% in six months. On the surface, that smells like trouble. But dig deeper, and you’ll find companies with solid pipelines, innovative tech, and the kind of long-term upside that could make today’s discounts look like Black Friday steals.

The Allure of the Beaten-Down Stock

Every investor dreams of buying Amazon at $6 or Apple before the iPod. But spotting those opportunities requires more than luck—it demands a willingness to go against the herd. Beaten-down stocks, especially in biotech, often suffer from short-term setbacks: clinical trial delays, funding crunches, or just plain old market irrationality.
The key is separating the doomed from the discounted. Companies with strong fundamentals—cash reserves, viable products, and competent management—can rebound. Those without? Well, let’s just say they belong in the market’s bargain-bin graveyard. Viking and TransMedics fall into the first category. Their recent dips aren’t death knells; they’re buying opportunities for those who can stomach the rollercoaster.

Viking Therapeutics: A Biotech Phoenix Waiting to Rise?

Viking Therapeutics was the darling of 2024, riding high on promising clinical data for its metabolic and endocrine disorder treatments. Fast forward to 2025, and the stock’s taken a nosedive. But here’s the thing: the science hasn’t changed.
The company’s lead drug, VK2735, is still in the running as a potential blockbuster for obesity and metabolic dysfunction—a market that’s already minted giants like Novo Nordisk and Eli Lilly. Viking’s pipeline also includes treatments for NASH (a liver disease with no FDA-approved meds) and X-linked adrenoleukodystrophy, a rare genetic disorder.
So why the drop? Biotech stocks live and die by trial results and investor sentiment. A delay, a competitor’s success, or just general market jitters can send shares tumbling. But if Viking’s drugs hit their marks in upcoming trials, today’s discount could look laughable in hindsight.

TransMedics Group: The Organ Transport Play No One’s Talking About

While Viking’s story is about bouncing back, TransMedics is more of a stealth growth play. The company specializes in organ transplant tech—specifically, its *Organ Care System* (OCS), which keeps donor organs alive outside the body longer than traditional cold storage.
This isn’t just a niche market. The global organ transplant industry is expected to hit $25 billion by 2028, and TransMedics is one of the few pure-play public companies in the space. Yet, despite strong revenue growth (up 86% year-over-year in Q1 2025), the stock’s been hammered.
Why? Short-term concerns. The company’s been investing heavily in scaling up, which has dented profitability. But long-term, the thesis is intact: more transplants mean more demand for OCS. If TransMedics can execute, today’s dip could be a blip.

The Fool’s Gold: Why These Stocks Weren’t on Motley Fool’s List

The Motley Fool’s *Stock Advisor* recently named its top 10 stocks to buy now—and neither Viking nor TransMedics made the cut. That’s no surprise. The Fool tends to favor established winners (like Nvidia or Netflix) over high-risk biotech bets.
But here’s the kicker: Nvidia was a risky pick back in 2005, and Netflix was a DVD rental company in 2004. The biggest returns often come from overlooked or beaten-down stocks that later prove their worth. Viking and TransMedics might not be household names yet, but if their pipelines deliver, they could join those ranks.

The Verdict: High Risk, High Reward

Investing in beaten-down biotechs isn’t for the faint of heart. These stocks can swing wildly on a single headline, and there’s always the chance of a clinical flop or funding crisis. But for those with a long-term horizon and a taste for volatility, Viking and TransMedics offer compelling cases.
Viking’s pipeline is packed with potential blockbusters, while TransMedics is tapping into an under-the-radar growth market. Neither is a sure thing—but then again, neither was Amazon in 2001. The key is due diligence, diversification, and the patience to let the story unfold.
So, if you’re looking for the next big biotech rebound, keep your eye on these two. Just remember: in the world of beaten-down stocks, the difference between a diamond and a dud often comes down to timing—and a little bit of luck. Case closed, folks.