Biotechnology Stocks

Biotech 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. What is a biotech stock?

CompanyPE RatioMarket CapCurrent PricePrice ChangeVolumeAverage VolumeIndicator(s)
Moderna logo
MRNA
Moderna
282.88$141.98 billion$353.60flat11.35 million19.92 millionUpcoming Earnings
Insider Selling
Amgen logo
AMGN
Amgen
20.01$138.78 billion$241.54flat2.28 million1.97 millionUpcoming Earnings
Dividend Announcement
Analyst Report
News Coverage
BioNTech logo
BNTX
BioNTech
57.50$79.30 billion$328.35flat4.03 million3.27 millionAnalyst Downgrade
Gap Down
Dassault Systèmes logo
DASTY
Dassault Systèmes
93.01$73.42 billion$55.25flat43,63247,671Analyst Report
Short Interest Increase
Gap Up
Lonza Group logo
LZAGY
Lonza Group
59.94$58.03 billion$77.92flat56,62639,793Analyst Report
Short Interest Decrease
Analyst Revision
News Coverage
Vertex Pharmaceuticals logo
VRTX
Vertex Pharmaceuticals
26.59$52.18 billion$201.58flat2.13 million1.94 millionEarnings Announcement
Analyst Downgrade
News Coverage
Takeda Pharmaceutical logo
TAK
Takeda Pharmaceutical
11.30$52.07 billion$16.50flat3.08 million1.51 millionShort Interest Decrease
News Coverage
High Trading Volume
High Trading Volume
IQVIA logo
IQV
IQVIA
79.39$47.46 billion$247.70flat966,961821,684Earnings Announcement
Analyst Report
Analyst Revision
News Coverage
Cognizant Technology Solutions logo
CTSH
Cognizant Technology Solutions
23.34$38.78 billion$73.53flat3.39 million3.04 millionEarnings Announcement
Dividend Announcement
Analyst Upgrade
Analyst Revision
News Coverage
Genmab A/S logo
GNMSF
Genmab A/S
6.44$29.68 billion$454.00flat1,048622Short Interest Decrease
News Coverage
Genmab A/S logo
GMAB
Genmab A/S
34.66$29.59 billion$45.06flat242,457281,854
PharmaCyte Biotech logo
PMCB
PharmaCyte Biotech
N/A$28.67 billion$12.01flat2,13112.07 million
Seagen logo
SGEN
Seagen
47.05$27.84 billion$153.39flat1.45 million732,936Earnings Announcement
Short Interest Decrease
Analyst Revision
News Coverage
AmerisourceBergen logo
ABC
AmerisourceBergen
N/A$25.10 billion$122.17flat780,751791,433Upcoming Earnings
Short Interest Decrease
News Coverage
Sysmex logo
SSMXY
Sysmex
80.23$24.87 billion$59.37flat19,27014,273Upcoming Earnings
Analyst Downgrade
Short Interest Increase
Analyst Revision
News Coverage
Negative News
Royalty Pharma logo
RPRX
Royalty Pharma
23.88$23.19 billion$38.20flat6.97 million1.68 millionAnalyst Report
Insider Selling
News Coverage
High Trading Volume
High Trading Volume
Horizon Therapeutics Public logo
HZNP
Horizon Therapeutics Public
86.22$22.48 billion$100.02flat1.89 million1.01 millionUpcoming Earnings
Analyst Upgrade
Insider Selling
Bio-Rad Laboratories logo
BIO
Bio-Rad Laboratories
5.51$22.01 billion$739.51flat293,39198,607Earnings Announcement
Analyst Report
News Coverage
Gap Down
High Trading Volume
High Trading Volume
Alnylam Pharmaceuticals logo
ALNY
Alnylam Pharmaceuticals
N/A$21.03 billion$178.94flat409,176530,545Upcoming Earnings
News Coverage
Bio-Rad Laboratories logo
BIO.B
Bio-Rad Laboratories
5.20$20.77 billion$697.76flat20101
Charles River Laboratories International logo
CRL
Charles River Laboratories International
55.14$20.45 billion$406.92flat405,603236,638Upcoming Earnings
Short Interest Decrease
PerkinElmer logo
PKI
PerkinElmer
17.34$20.43 billion$182.23flat1.20 million713,892Earnings Announcement
Dividend Announcement
Analyst Report
Unusual Options Activity
Analyst Revision
News Coverage
Catalent logo
CTLT
Catalent
40.34$20.41 billion$119.81flat920,123591,521Insider Selling
10x Genomics logo
TXG
10x Genomics
N/A$20.12 billion$183.23flat420,980428,288Upcoming Earnings
Healthpeak Properties logo
PEAK
Healthpeak Properties
72.49$19.92 billion$36.97flat4.66 million2.95 millionUpcoming Earnings
Dividend Announcement
News Coverage
Bio-Techne logo
TECH
Bio-Techne
105.29$18.76 billion$482.24flat75,978144,221Upcoming Earnings
News Coverage
Alfa Laval AB (publ) logo
ALFVY
Alfa Laval AB (publ)
40.93$17.51 billion$41.75flat11,79213,120Short Interest Decrease
PPD logo
PPD
PPD
64.06$16.19 billion$46.12flat979,1561.60 millionEarnings Announcement
argenx logo
ARGX
argenx
N/A$15.62 billion$304.43flat151,206121,157Earnings Announcement
Analyst Revision
News Coverage
Clarivate logo
CLVT
Clarivate
N/A$14.62 billion$22.80flat5.70 million2.89 millionAnalyst Report
Unusual Options Activity
News Coverage
Gap Down
Suzano logo
SUZ
Suzano
20.45$14.20 billion$10.43flat826,511489,170Gap Up
Repligen logo
RGEN
Repligen
137.26$13.49 billion$245.70flat459,991373,275Earnings Announcement
Analyst Report
Analyst Revision
News Coverage
Novavax logo
NVAX
Novavax
N/A$13.29 billion$179.33flat2.20 million3.57 millionUpcoming Earnings
Insider Selling
Gap Up
ICON Public logo
ICLR
ICON Public
35.67$12.86 billion$243.27flat1.49 million1.10 millionShort Interest Decrease
Bruker logo
BRKR
Bruker
61.84$12.46 billion$82.25flat570,782539,749Upcoming Earnings
iShares Nasdaq Biotechnology ETF logo
IBB
iShares Nasdaq Biotechnology ETF
N/A$11.05 billion$165.78flat2.20 million2.70 million
PRA Health Sciences logo
PRAH
PRA Health Sciences
50.52$10.70 billion$165.21flat57837,472Upcoming Earnings
Dr. Reddy's Laboratories logo
RDY
Dr. Reddy's Laboratories
40.10$10.41 billion$62.55flat288,825112,013Earnings Announcement
Analyst Downgrade
Short Interest Decrease
Analyst Revision
News Coverage
High Trading Volume
High Trading Volume
WNDM
Wound Management Technologies
N/A$9.72 billion$41.09flat9,660137,966Gap Down
Syneos Health logo
SYNH
Syneos Health
47.70$9.35 billion$89.67flat336,155620,357Short Interest Decrease
Alleghany logo
Y
Alleghany
13.56$9.23 billion$663.10flat83,09446,801Upcoming Earnings
News Coverage
United Therapeutics logo
UTHR
United Therapeutics
20.10$8.15 billion$181.93flat206,178197,323Upcoming Earnings
News Coverage
Positive News
Fate Therapeutics logo
FATE
Fate Therapeutics
N/A$7.79 billion$82.80flat441,632787,134Upcoming Earnings
Gap Up
Evotec logo
EVTCY
Evotec
135.95$6.71 billion$81.57flat173335
SWEDISH ORPHAN/S logo
SWTUY
SWEDISH ORPHAN/S
48.76$6.64 billion$24.38-1.2%2001,665
Lumentum logo
LITE
Lumentum
17.83$6.37 billion$83.99flat573,180441,402
Medpace logo
MEDP
Medpace
37.92$6.30 billion$175.94flat128,634161,510Earnings Announcement
Analyst Report
Insider Selling
Analyst Revision
Legend Biotech logo
LEGN
Legend Biotech
N/A$6.22 billion$43.03flat222,745421,050Gap Up
Denali Therapeutics logo
DNLI
Denali Therapeutics
221.88$6.18 billion$51.03flat563,818633,685Upcoming Earnings
Stevanato Group logo
STVN
Stevanato Group
N/A$5.95 billion$20.19flat1.27 million2.25 millionNews Coverage
Halozyme Therapeutics logo
HALO
Halozyme Therapeutics
36.58$5.88 billion$41.33flat682,179632,541News Coverage
Beam Therapeutics logo
BEAM
Beam Therapeutics
N/A$5.76 billion$92.00flat475,175723,449Gap Down
SBI logo
SBHGF
SBI
8.49$5.48 billion$23.76flat1981,959
Exelixis logo
EXEL
Exelixis
84.25$5.28 billion$16.85flat1.19 million2.12 millionUpcoming Earnings
Adaptive Biotechnologies logo
ADPT
Adaptive Biotechnologies
N/A$5.14 billion$36.66flat279,300472,444Upcoming Earnings
RXRX
Recursion Pharmaceuticals
N/A$5.11 billion$30.35flat127,568336,500Gap Up
Vir Biotechnology logo
VIR
Vir Biotechnology
N/A$4.64 billion$35.65flat531,347632,897Upcoming Earnings
Unusual Options Activity
News Coverage
OLK
Olink Holding AB (publ)
N/A$4.45 billion$37.37flat289,768352,450Gap Up
SpringWorks Therapeutics logo
SWTX
SpringWorks Therapeutics
N/A$4.20 billion$85.70flat214,198190,235Analyst Downgrade
News Coverage
Gap Up
Galapagos logo
GLPG
Galapagos
N/A$3.97 billion$60.54flat148,835446,074Upcoming Earnings
Emergent BioSolutions logo
EBS
Emergent BioSolutions
11.90$3.53 billion$65.90flat887,923441,938Earnings Announcement
Analyst Downgrade
News Coverage
Gap Down
High Trading Volume
High Trading Volume
Phreesia logo
PHR
Phreesia
N/A$3.45 billion$68.35flat159,763331,160
Sana Biotechnology logo
SANA
Sana Biotechnology
N/A$3.06 billion$16.29flat335,482320,066Upcoming Earnings
Lockup Expiration
Gap Up
BioCryst Pharmaceuticals logo
BCRX
BioCryst Pharmaceuticals
N/A$2.86 billion$16.12flat2.48 million2.20 millionUpcoming Earnings
Analyst Downgrade
Analyst Revision
Gap Up
Cassava Sciences logo
SAVA
Cassava Sciences
N/A$2.78 billion$69.53flat25.20 million4.55 millionNews Coverage
Gap Up
High Trading Volume
High Trading Volume
Amicus Therapeutics logo
FOLD
Amicus Therapeutics
N/A$2.47 billion$9.29flat1.69 million2.22 millionUpcoming Earnings
News Coverage
Myriad Genetics logo
MYGN
Myriad Genetics
N/A$2.44 billion$31.63flat428,302646,845Upcoming Earnings
Short Interest Increase
Burning Rock Biotech logo
BNR
Burning Rock Biotech
N/A$2.38 billion$22.78flat293,368265,249News Coverage
Rocket Pharmaceuticals logo
RCKT
Rocket Pharmaceuticals
N/A$2.27 billion$35.82flat551,246408,408Upcoming Earnings
Gap Up
IGM Biosciences logo
IGMS
IGM Biosciences
N/A$2.18 billion$68.01flat707,67797,711Upcoming Earnings
News Coverage
Gap Up
High Trading Volume
Protagonist Therapeutics logo
PTGX
Protagonist Therapeutics
N/A$2.17 billion$49.43flat516,980332,082Upcoming Earnings
Analyst Report
Analyst Revision
News Coverage
Gap Down
Morphic logo
MORF
Morphic
N/A$2.09 billion$57.62flat104,231118,474Gap Up
Revance Therapeutics logo
RVNC
Revance Therapeutics
N/A$2.08 billion$29.08flat351,232359,787Upcoming Earnings
Analyst Downgrade
Insider Selling
News Coverage
Hercules Capital logo
HTGC
Hercules Capital
5.98$2.00 billion$17.27flat722,363510,092Earnings Announcement
Dividend Cut
Analyst Revision
News Coverage
Seer logo
SEER
Seer
N/A$1.96 billion$31.94flat284,657394,240Short Interest Decrease
Quanterix logo
QTRX
Quanterix
N/A$1.93 billion$53.15flat135,785191,576Upcoming Earnings
Insider Selling
Xencor logo
XNCR
Xencor
N/A$1.79 billion$30.78flat176,446185,163Upcoming Earnings
Gap Up
Inovio Pharmaceuticals logo
INO
Inovio Pharmaceuticals
N/A$1.76 billion$8.40flat2.01 million3.45 millionNews Coverage
bluebird bio logo
BLUE
bluebird bio
N/A$1.71 billion$25.41flat720,537758,272Upcoming Earnings
Analyst Report
Analyst Revision
Bionano Genomics logo
BNGO
Bionano Genomics
N/A$1.65 billion$5.93flat6.20 million9.50 millionUpcoming Earnings
Short Interest Decrease
Century Therapeutics logo
IPSC
Century Therapeutics
N/A$1.60 billion$29.15flat112,469227,348Quiet Period Expiration
Gap Down
Avid Bioservices logo
CDMO
Avid Bioservices
641.41$1.57 billion$25.65flat205,767486,583
Replimune Group logo
REPL
Replimune Group
N/A$1.53 billion$32.73flat234,286239,998Upcoming Earnings
Analyst Downgrade
MacroGenics logo
MGNX
MacroGenics
N/A$1.50 billion$24.96flat659,356424,286Earnings Announcement
Analyst Report
News Coverage
Zymeworks logo
ZYME
Zymeworks
N/A$1.48 billion$32.09-1.9%411,340336,648Upcoming Earnings
ADC Therapeutics logo
ADCT
ADC Therapeutics
N/A$1.45 billion$21.04flat61,714204,788Upcoming Earnings
Short Interest Decrease
News Coverage
Immunocore logo
IMCR
Immunocore
N/A$1.41 billion$32.72flat72,87856,923Analyst Upgrade
Lockup Expiration
CTDH
Cyclo Therapeutics
N/A$1.41 billion$8.30flat193,633245,004
Sangamo Therapeutics logo
SGMO
Sangamo Therapeutics
N/A$1.38 billion$9.58flat621,319827,981Upcoming Earnings
Analyst Downgrade
News Coverage
REGENXBIO logo
RGNX
REGENXBIO
N/A$1.37 billion$32.32flat355,274266,225Upcoming Earnings
News Coverage
Ocugen logo
OCGN
Ocugen
N/A$1.33 billion$6.71flat7.10 million16.53 millionUpcoming Earnings
Gap Up
Zealand Pharma A/S logo
ZEAL
Zealand Pharma A/S
N/A$1.33 billion$30.50flat3,32126,797News Coverage
Krystal Biotech logo
KRYS
Krystal Biotech
N/A$1.30 billion$58.44flat75,889118,679
Heron Therapeutics logo
HRTX
Heron Therapeutics
N/A$1.26 billion$12.36flat1.52 million1.25 millionUpcoming Earnings
Analyst Upgrade
Tekla Healthcare Investors logo
HQH
Tekla Healthcare Investors
N/A$1.16 billion$25.96flat54,11297,091Short Interest Decrease
News Coverage
Standex International logo
SXI
Standex International
46.46$1.13 billion$92.00flat53,70640,079Short Interest Increase
ImmunoGen logo
IMGN
ImmunoGen
N/A$1.12 billion$5.61flat1.37 million1.24 millionEarnings Announcement
News Coverage
Vaxcyte logo
PCVX
Vaxcyte
N/A$1.11 billion$21.68flat101,631129,365Insider Selling
News Coverage
Gap Up
Inhibrx logo
INBX
Inhibrx
N/A$1.08 billion$28.46flat201,811138,008Gap Up
CytoDyn logo
CYDY
CytoDyn
N/A$1.05 billion$1.69flat1.21 million2.07 millionGap Down
CSV / Excel Export To export this table to CSV or Excel, upgrade to MarketBeat All Access.
The How and Why of Investing in Biotech Stocks

One of the most fascinating and potentially risky sectors to invest in is the biotech sector. This is the sector that includes companies involved in the research and development of therapeutics and vaccines to relieve a myriad 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) it 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, the product(s) still have to be approved by the U.S. Food & Drug Administration (FDA) before it can go to market.

And the 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.

Introduction

The biotech sector illustrates the risk-reward of investing in stocks more than almost any other sector. Biotech companies are involved in developing therapeutics and drugs for life-threatening conditions. Many of the companies in this sector are small-cap companies. Some are even penny stocks (meaning they have a stock price of under $5).

Biotech stocks are popular because, 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 easily lose the majority of their investment.

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

How a Biotech Company Is Different From a Pharmaceutical Company?

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 are about what is and 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 have other products in development. Because of this pharmaceutical companies are generally profitable and in some cases 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 that are using science to develop a potential therapy or vaccine. Many of these companies are small-cap stocks that are not profitable. And even the small fraction of those that rarely pay a dividend.

Another distinction 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).

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.

How to Select 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. However, as an investor, these are the companies that you should be looking for because there will be a high demand for the company’s products. The obvious reason is that the companies that were successful would be able to get a faster return on their significant R&D and licensing efforts.

    For example, during the Covid-19 pandemic companies that were developing vaccine candidates soared. However, investors can also look for biotech firms that are researching treatments for areas such as cancer, AIDS, heart disease and neurological conditions.

    Another reason to look for a hot area of research is that it can lead to breakthrough “orphan” drugs and treatments that – if they are first to market - are typically protected from competition for many years.

  2. Look at the company they keep. 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. As with many investment opportunities, cash is king. The record pace at which multiple Covid-19 vaccines were developed underscores the 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 can work. However, it comes at the expense of share dilution. Companies that continually need to issue share offerings should raise a caution flag for investors.

  4. It stands to reason that 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.

  5. 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.

  6. Just as investors want to look for a deep pipeline, they also want to see 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 a good first start. However, that’s 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.

  7. 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.

  8. 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.

How to invest in biotech stocks?

The easiest and more popular way to invest in biotech stocks is to buy stocks of individual companies. However, investing in an 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)

The final word on investing in biotech stocks

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 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 have been 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.

                     



MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.