QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)

Biotechnology Stocks

Biotechnology companies leverage cutting-edge science to create medicines and treatments for a multitude of diseases, making them high-risk, high-reward opportunities for investors looking to profit from healthcare innovation. This page lists publicly-traded biotech companies by market capitalization. What is a biotech stock?

MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
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Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
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Analyst consensus is the average investment recommendation among Wall Street research analysts.
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CompanyCurrent PricePE RatioMarket CapVolumeAverage VolumeIndicator(s)
Danaher Co. stock logo
24.40$167.08 billion3.65 million2.85 millionAnalyst Report
Amgen Inc. stock logo
15.24$119.81 billion2.23 million2.34 millionAnalyst Report
Options Volume
Vertex Pharmaceuticals Incorporated stock logo
Vertex Pharmaceuticals
27.03$87.43 billion1.14 million1.20 millionAnalyst Report
Analyst Revision
Regeneron Pharmaceuticals, Inc. stock logo
Regeneron Pharmaceuticals
20.31$81.72 billion501,269600,803Analyst Report
Seagen Inc. stock logo
N/A$36.40 billion2.11 million1.49 millionInsider Selling
Options Volume
Genmab A/S stock logo
Genmab A/S
36.65$26.83 billion327,808483,494Analyst Report
Analyst Revision
Corning Incorporated stock logo
29.52$26.60 billion2.80 million4.38 millionAnalyst Report
BioNTech SE stock logo
4.03$25.52 billion604,446686,843Analyst Upgrade
BeiGene, Ltd. stock logo
N/A$23.91 billion151,309221,259Analyst Report
International Flavors & Fragrances Inc. stock logo
International Flavors & Fragrances
N/A$21.47 billion1.88 million2.01 millionAnalyst Report
Royalty Pharma plc stock logo
Royalty Pharma
61.15$20.42 billion2.18 million1.82 millionInsider Buying
Gap Up
ICON Public Limited stock logo
ICON Public
33.69$17.01 billion703,386578,216Analyst Report
Bio-Techne Co. stock logo
49.86$13.11 billion889,0601.07 millionAnalyst Report
Analyst Revision
Legend Biotech Co. stock logo
Legend Biotech
N/A$11.38 billion535,314768,816Positive News
Bio-Rad Laboratories, Inc. stock logo
Bio-Rad Laboratories
N/A$11.07 billion670
Healthpeak Properties, Inc. stock logo
Healthpeak Properties
20.00$11.05 billion3.40 million4.33 million
United Therapeutics Co. stock logo
United Therapeutics
14.60$10.16 billion288,243503,621Analyst Report
Insider Selling
iShares Biotechnology ETF stock logo
iShares Biotechnology ETF
N/A$7.83 billion1.57 million1.54 million
10x Genomics, Inc. stock logo
10x Genomics
N/A$6.39 billion995,119973,022Insider Selling
News Coverage
Medpace Holdings, Inc. stock logo
26.47$6.38 billion220,051339,325
Vaxcyte, Inc. stock logo
N/A$4.56 billion639,259859,373
Halozyme Therapeutics, Inc. stock logo
Halozyme Therapeutics
25.42$4.38 billion807,4141.51 millionAnalyst Report
Abcam plc stock logo
N/A$3.88 billion317,109699,774Positive News
Vir Biotechnology, Inc. stock logo
Vir Biotechnology
N/A$3.33 billion606,858945,827
Amicus Therapeutics, Inc. stock logo
Amicus Therapeutics
N/A$3.25 billion3.06 million2.34 millionAnalyst Report
Options Volume
Analyst Revision
Lumentum Holdings Inc. stock logo
N/A$3.24 billion1.11 million1.02 millionAnalyst Report
Galapagos NV stock logo
N/A$2.89 billion595,378264,902Analyst Report
Short Interest ↑
Gap Up
High Trading Volume
Azenta, Inc. stock logo
N/A$2.78 billion937,4751.16 million
Revance Therapeutics, Inc. stock logo
Revance Therapeutics
N/A$2.67 billion989,6341.52 millionAnalyst Report
Insider Selling
News Coverage
Beam Therapeutics Inc. stock logo
Beam Therapeutics
N/A$2.66 billion824,754917,731Analyst Revision
Olink Holding AB (publ) stock logo
Olink Holding AB (publ)
N/A$2.58 billion64,663132,140Analyst Revision
Immunocore Holdings plc stock logo
N/A$2.44 billion289,167275,225
Krystal Biotech, Inc. stock logo
Krystal Biotech
N/A$2.26 billion177,230201,970Short Interest ↓
Arcellx, Inc. stock logo
N/A$1.98 billion356,252484,189Analyst Report
Insider Selling
Short Interest ↑
SpringWorks Therapeutics, Inc. stock logo
SpringWorks Therapeutics
N/A$1.81 billion459,542685,739
Rocket Pharmaceuticals, Inc. stock logo
Rocket Pharmaceuticals
N/A$1.71 billion499,929811,265Analyst Report
Standex International Co. stock logo
Standex International
12.76$1.68 billion39,46164,801Analyst Report
BioCryst Pharmaceuticals, Inc. stock logo
BioCryst Pharmaceuticals
N/A$1.58 billion2.03 million2.97 millionGap Down
Myriad Genetics, Inc. stock logo
Myriad Genetics
N/A$1.53 billion461,886596,151Analyst Report
Geron Co. stock logo
N/A$1.52 billion4.75 million7.94 millionEarnings Report
Short Interest ↑
Analyst Revision
Sana Biotechnology, Inc. stock logo
Sana Biotechnology
N/A$1.38 billion1.57 million1.17 millionOptions Volume
Arcus Biosciences, Inc. stock logo
Arcus Biosciences
N/A$1.29 billion916,5591.00 millionAnalyst Revision
Replimune Group, Inc. stock logo
Replimune Group
N/A$1.11 billion819,386557,283News Coverage
Inhibrx, Inc. stock logo
N/A$1.06 billion299,444407,269
Recursion Pharmaceuticals, Inc. stock logo
Recursion Pharmaceuticals
N/A$1.05 billion1.43 million1.10 million
Avid Bioservices, Inc. stock logo
Avid Bioservices
8.79$912.60 million1.06 million554,688
Adaptive Biotechnologies Co. stock logo
Adaptive Biotechnologies
N/A$893.28 million914,281929,302
REGENXBIO Inc. stock logo
N/A$806.80 million655,815415,076Analyst Report
Tekla Healthcare Investors stock logo
Tekla Healthcare Investors
N/A$801.22 million113,816128,605Dividend Cut
News Coverage
Dyne Therapeutics, Inc. stock logo
Dyne Therapeutics
N/A$767.37 million306,831349,746
Dyne Therapeutics, Inc. stock logo
Dyne Therapeutics
N/A$767.36 million306,831349,746News Coverage
Cogent Biosciences, Inc. stock logo
Cogent Biosciences
N/A$764.84 million699,388632,574Short Interest ↓
Novavax, Inc. stock logo
N/A$668.86 million4.57 million6.42 million
Disc Medicine Opco Inc stock logo
Disc Medicine Opco
N/A$637.95 million26,89594,774Earnings Report
Analyst Report
Analyst Revision
Progenity, Inc. stock logo
N/A$617.07 million52,3248.59 million
Aclaris Therapeutics, Inc. stock logo
Aclaris Therapeutics
N/A$573.92 million279,458925,475Analyst Report
SomaLogic, Inc. stock logo
N/A$567.43 million416,7211.02 million
Aldeyra Therapeutics, Inc stock logo
Aldeyra Therapeutics
N/A$565.30 million671,690688,641Analyst Report
Enanta Pharmaceuticals, Inc. stock logo
Enanta Pharmaceuticals
N/A$529.87 million195,317184,211Analyst Report
AnaptysBio, Inc. stock logo
N/A$501.46 million154,354285,005Analyst Report
Stoke Therapeutics, Inc. stock logo
Stoke Therapeutics
N/A$491.39 million101,352292,292
VanEck Biotech ETF stock logo
VanEck Biotech ETF
N/A$490.08 million6,2249,820
IGM Biosciences, Inc. stock logo
IGM Biosciences
N/A$485.51 million185,683221,236Analyst Report
News Coverage
Omega Therapeutics, Inc. stock logo
Omega Therapeutics
N/A$484.18 million83,31188,422
Tenaya Therapeutics, Inc. stock logo
Tenaya Therapeutics
N/A$482.80 million611,983537,929Analyst Revision
OmniAb, Inc. stock logo
N/A$453.07 million685,493642,123Earnings Report
Aura Biosciences, Inc. stock logo
Aura Biosciences
N/A$449.06 million91,441105,157
Runway Growth Finance Corp. stock logo
Runway Growth Finance
10.70$446.42 million228,564130,305Analyst Report
Entrada Therapeutics, Inc. stock logo
Entrada Therapeutics
N/A$420.31 million38,57146,321Analyst Revision
bluebird bio, Inc. stock logo
bluebird bio
N/A$402.23 million3.74 million4.42 millionAnalyst Report
Cabaletta Bio, Inc. stock logo
Cabaletta Bio
N/A$385.73 million1.47 million486,130News Coverage
Gap Up
High Trading Volume
PepGen Inc. stock logo
N/A$355.51 million19,67341,802Analyst Revision
Tekla Life Sciences Investors stock logo
Tekla Life Sciences Investors
N/A$347.69 million38,33675,265Dividend Cut
News Coverage
Social Capital Suvretta Holdings Corp. IV stock logo
Social Capital Suvretta Holdings Corp. IV
N/A$328.15 million2135,921
Social Capital Suvretta Holdings Corp. II stock logo
Social Capital Suvretta Holdings Corp. II
N/A$327.83 million1,539119,715
Vera Therapeutics, Inc. stock logo
Vera Therapeutics
N/A$327.52 million214,951697,170Analyst Revision
Tango Therapeutics, Inc. stock logo
Tango Therapeutics
N/A$327.12 million56,236188,251
Sanara MedTech Inc. stock logo
Sanara MedTech
N/A$322.88 million16,93215,033
Precigen, Inc. stock logo
N/A$319.35 million616,5561.89 millionAnalyst Revision
Tutor Perini Co. stock logo
Tutor Perini
N/A$319.20 million511,196354,966Analyst Report
Burning Rock Biotech Limited stock logo
Burning Rock Biotech
N/A$294.53 million22,871112,908Short Interest ↓
Nautilus Biotechnology, Inc. stock logo
Nautilus Biotechnology
N/A$293.44 million108,983107,784News Coverage
Positive News
Invesco S&P SmallCap Health Care ETF stock logo
Invesco S&P SmallCap Health Care ETF
30.42$285.64 million2,7015,936News Coverage
Adicet Bio, Inc. stock logo
Adicet Bio
N/A$277.52 million262,067488,861Analyst Report
News Coverage
Eagle Pharmaceuticals, Inc. stock logo
Eagle Pharmaceuticals
410.08$268.35 million133,878152,088Analyst Report
Insider Selling
Short Interest ↓
News Coverage
DA32 Life Science Tech Acquisition Corp. stock logo
DA32 Life Science Tech Acquisition
N/A$261.63 million33,465115,262Positive News
908 Devices Inc. stock logo
908 Devices
N/A$255.67 million139,648256,259Analyst Revision
Spectrum Pharmaceuticals, Inc. stock logo
Spectrum Pharmaceuticals
N/A$248.37 million1.15 million2.30 millionAnalyst Downgrade
Vaxxinity, Inc. stock logo
N/A$245.82 million156,485264,543
ProKidney Corp. stock logo
N/A$241.27 million162,203185,450
Panacea Acquisition Corp. II
N/A$241.15 million114,300115,008Gap Up
Diversified Healthcare Trust stock logo
Diversified Healthcare Trust
N/A$238.67 million5.02 million4.04 millionAnalyst Report
Analyst Revision
Positive News
X4 Pharmaceuticals, Inc. stock logo
X4 Pharmaceuticals
N/A$237.09 million7.99 million1.97 millionAnalyst Report
Analyst Revision
News Coverage
High Trading Volume
Innate Pharma S.A. stock logo
Innate Pharma
N/A$232.10 million9,42117,351Gap Down
Seer, Inc. stock logo
N/A$230.10 million161,952389,015
PDS Biotechnology Co. stock logo
PDS Biotechnology
N/A$228.07 million538,961438,249Analyst Report
Analyst Revision
News Coverage
Rigel Pharmaceuticals, Inc. stock logo
Rigel Pharmaceuticals
N/A$225.77 million12.97 million2.92 millionAnalyst Report
Gap Down
High Trading Volume
Rallybio Co. stock logo
N/A$224.24 million34,48453,884Gap Down
Sangamo Therapeutics, Inc. stock logo
Sangamo Therapeutics
N/A$221.66 million1.68 million1.93 millionGap Down
Immutep Limited stock logo
N/A$213.67 million5.27 million972,492Analyst Report
News Coverage
Gap Down
High Trading Volume
 Biotech Stocks

One of the most fascinating but potentially risky sectors to invest in is the biotech sector. This sector includes companies involved in the research and development of therapeutics and vaccines to relieve a wide range of conditions and diseases.

The Covid-19 pandemic brought on by the novel coronavirus in 2020 put the sector squarely in focus. However, due to the unprecedented assistance from the U.S. government through Operation Warp Speed (OWS), the growth in some biotech stocks was also an anomaly.

Seasoned investors in the biotech industry understand that products go through a lengthy, rigorous, and expensive testing process. However even when (and if) a drug makes it through that process, it still has to be approved by the U.S. Food & Drug Administration (FDA) before going to market.

And a harsh reality of the biotech sector is that many products will never make it to market, which adds a level of risk to any biotech investment. The good news is there are ways to help minimize the risk by understanding what qualities to look for in biotech stocks.

In this article, we’ll describe what a biotech company is and how it’s different from (and in some cases similar to) a pharmaceutical company. We’ll also share a few practical tips that can help you in performing your due diligence on biotech companies.

Biotech companies are involved in developing therapeutics and drugs for chronic and/or life-threatening conditions. Many of the companies in this sector are small-cap companies (i.e. stocks with a market cap of less than $2 billion). Some are also penny stocks (meaning they have a stock price of under $5).

However, the opportunity to buy low and sell high is part of the attraction with biotech stocks. If these companies successfully bring a product to market, their stock price could double or more virtually overnight.

On the other hand, perhaps no other sector comes with so much risk. The reality is that many of the products that these companies develop never make it out of clinical trials, or get approved by the FDA. And that means that investors can also lose the majority of their investment.

The biotech and pharmaceutical sectors are related but more like cousins than siblings. One key point that distinguishes the two sectors is that investing in pharmaceutical companies is more about what is while biotech stocks are about what could be. And that changes the risk profile for both.

A pharmaceutical company has revenue coming in from products that are commercially available and has other products in development. Because they typically have one or more revenue streams, pharmaceutical companies are generally profitable. In some cases, these companies also offer investors a dividend, which can be a significant part of an investor’s total return.

By contrast, a biotech company is primarily research-driven. The company is using science to develop a potential therapy or vaccine. However, many of these companies are small-cap stocks that do not have a commercially used product. This means that in addition to not being profitable they are generating little to no revenue. And the small fraction of biotech companies that are profitable rarely pay a dividend.

Another distinction between the two companies is that pharmaceutical companies spend a great deal of money in marketing and sales. On the other hand, biotech companies see their strength as being in research and development (R&D). This focus on R&D may cause biotech companies to raise capital which can dilute their share price even further.

Where the two sectors overlap is that pharmaceutical companies are increasingly pulling back from research and are looking to partner with biotech firms for innovation. This helps create an opportunity for investors who know what to look for in a biotech stock.

There’s no sure-fire way to take the risk out of biotech stocks. However, there are certain things you can look for to help manage your risk.

  1. Look for a “hot” area of biotech. This means looking for a company that is doing research for a disease or condition that affects a large segment of the population. Should the company be successful, there are two obvious reasons why investors will be rewarded.

    First, there will be a high demand for the company’s products. Second, the companies would be able to get a faster return on their significant R&D and licensing efforts. Another reason to look for a hot area of research is because it can lead to breakthrough “orphan” drugs and treatments that – if they are first to market - are typically protected from competition for many years.

    An extreme example of this occurred during the Covid-19 pandemic as companies that were developing vaccine candidates saw their stock prices soar on the expectation that one or more vaccines would be fast-tracked through the FDA.

    However, investors see the same speculative activity occur with biotech firms that are researching treatments for areas such as cancer, AIDS, heart disease and neurological conditions. When drugs and therapeutics successfully move through clinical trials it creates higher demand for the company’s stock.

  2. Look at companies that are collaborating with others. Many biotech companies are small-cap companies. This can help them maintain a singular focus. However biotech development is expensive and when smaller companies form collaborations with other companies, it can help provide financial and logistical support. And if one collaborator is good, more is better.

  3. Cash is king. The record pace at which multiple Covid-19 vaccines were developed underscores the normal length of time it takes to bring a product to market. And that means that you should be looking for companies that have an ample cash reserve. It’s not uncommon for small-cap biotech firms to raise money through secondary share offerings. This has a dilutive effect on the shares of a company. Companies that continually need to issue share offerings should raise a caution flag for investors.

    In addition to finding companies that have an ample supply of cash, you also want to find companies that are not overly extended with debt. Companies that are heavily burdened with debt will often need to raise more capital which can lead to an unsustainable spiral.

  4. Look for companies with a deep pipeline of products that are in clinical trials. Many biotech companies have one product candidate. However, that’s a high-risk, high-reward proposition for investors. If that product fails, a company might have no other way to recoup their R&D costs. But companies that have several products in development give themselves multiple bites at the apple.

  5. If possible find companies with market-ready products. A deep pipeline is one thing, but at some point a company has to be able to bring a product to market. Completing clinical trials on human patients is only the first step. The product needs approval by the U.S. Food & Drug Administration (FDA). And that can take some time. Nevertheless, getting a drug successfully through clinical trials is a good indicator that a product will come to market sooner rather than later.

  6. Look for biotech stocks that have the potential to rebound quickly. These are typically companies whose stocks are being sold on temporary bad news. The process of getting a drug to market is notoriously complex. Along the line, many speculative investors will trade on the news. However investors can use a temporary drop in share price as a great opportunity to buy on the dip. Of course, you have to believe that the news is actually much ado about nothing. If so, investors can use these opportunities to accumulate additional shares.

  7. Have trust for who is in charge. It’s important that the management team consists of not only business-savvy entrepreneurs but also individuals who have the necessary scientific or medical credentials. This ensures that the company will not only be able to allocate resources towards the most promising products, they will also be able to properly interpret research data and make corrections as necessary.

The easiest and more popular way to invest in biotech stocks is to buy stocks of individual companies. However, investing in exchange-traded funds (ETFs) can be a smart way to manage the inherent risk of this sector. There are several biotech ETFs that track an index (a basket) of biotech stocks. Some of the most popular biotech ETFs are:

  • S&P Biotech Select Industry Index (INDEXSP: SPSIBI)
  • NYSE Arca Biotechnology Index (INDEXNYSEGIS: BTK)
  • NASDAQ Biotechnology Index (INDEXNASDAQ: NBI)
  • iShares NASDAQ Biotechnology ETF (NASDAQ: IBB)

Investing in biotech stocks can be one of the most profitable sectors for risk-tolerant investors. Biotech companies are engaged in research and development for chronic and life-threatening conditions. If these companies are able to successfully bring a product to market, its stock price (which in some cases is trading as a penny stock) can double, triple or move even higher.

However, there’s also a tremendous risk to biotech stocks. The process to get a product approved is lengthy and expensive. And just getting a product through clinical trials is not sufficient. There is still an approval process through the FDA. And, unlike the speed at which Covid-19 vaccines were approved, this can also be a lengthy process.

To invest in biotech stocks requires knowledge of not only financial fundamentals but also the science and medicine behind the company. Individual investors who have a background in science and medicine may have the ability to separate the contenders from the pretenders.                     

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