Prediction: Buying This Biotech Stock Today Could Set You Up for Life
Key Points
Mirum Pharmaceuticals already markets three therapies.
The company plans to report four pivotal readouts from clinical studies over the next 18 months.
Mirum's stock could skyrocket if those clinical results are positive.
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Some things are inherently risky. Feeding a bear while camping and texting while driving come to mind. So does investing in biotech stocks. However, not every biotech stock is super-risky.
Mirum Pharmaceuticals (NASDAQ: MIRM) is a rising star in the biotech world that has successfully navigated the riskiest period for small drugmakers. Its shares have skyrocketed more than 120% over the last 12 months. I predict that buying this biotech stock today just might set you up for life.
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A compelling story
Mirum already markets three therapies. Livmarli is approved in the U.S. and Europe for the treatment of Alagille Syndrome (ALGS) and Progressive Familial Intrahepatic Cholestasis (PFIC), both rare genetic liver diseases. Ctexli is approved in the U.S. for the treatment of another rare metabolic disorder, Cerebrotendinous Xanthomatosis (CTX). Cholbam is approved in the U.S. for the treatment of Bile Acid Synthesis Disorders (BASD).
The company's net product sales jumped 50% year over year in the fourth quarter of 2025. Livmarli led the way, with sales soaring 69% to $360 million. This impressive growth enabled Mirum to generate positive free cash flow in 2025. Although the company's increased research and development spending will cause its free cash flow to be negative this year, management expects to quickly return to positive free cash flow in 2027.
Mirum plans to report four pivotal readouts from clinical studies over the next 18 months. The first is coming up soon, with top-line data from a Phase 3 study evaluating volixibat for the treatment of Primary Sclerosing Cholangitis (PSC) expected in the second quarter of 2026. Mirum is set to announce Phase 3 data for brelovitug in the treatment of Hepatitis Delta Virus (HDV) in the second half of this year. It plans to report results from a Phase 3 study of Livmarli for the treatment of cholestatic pruritus in the fourth quarter. The company also anticipates announcing top-line results in the first half of 2027 for a study of volixibat in the treatment of Primary Biliary Cholangitis (PBC).
The peak sales estimates for Mirum's pipeline candidates top $4 billion. The company's market cap currently hovers around $5.8 billion. Using the average price-to-sales ratio for biotech stocks of 6.4, Mirum could be worth about $26 billion if its therapies fulfill their potential.
Image source: Getty Images.
An important caveat
However, the success of Mirum's pipeline isn't guaranteed. The opportunity for tremendous returns always comes with the risk of failure. Betting the farm on any one stock isn't advisable. It's important to build a diversified portfolio.
That said, Mirum should have a pretty good chance of reporting positive results from its upcoming pivotal studies. A little good news could go a long way with this up-and-coming biotech stock.
Should you buy stock in Mirum Pharmaceuticals right now?
Before you buy stock in Mirum Pharmaceuticals, consider this:
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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mirum Pharmaceuticals. The Motley Fool has a disclosure policy.
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