Biotech has seen its fair share of ups and downs, including a massive surge during the pandemic followed by a considerable dip. However, the industry will never go too far away from center stage as diseases and conditions will always need medicine and technology to treat them. These three strong buy biotech stocks are joining the upper ranks of their industry with promising new drugs and encouraging financials that justify serious consideration.
Given the timeline of clinical trials and new releases, these biotech stocks can be some of the best buy-and-hold stocks.
Let’s see why investors should add these strong buy biotech stocks to their Q2 watchlist for some promising returns and potential record-setting quarterly numbers this year.
Axsome Therapeutics (AXSM)
Axsome Therapeutics (NASDAQ:AXSM) is a leading producer of treatments for common conditions such as depression, narcolepsy and migraines. Over the last few years, Axsome has had clinical breakthroughs, with the approval of its depression treatment, Auvelity. In addition, Axsome acquired the narcolepsy treatment Sunosi from Jazz Pharmaceuticals in 2022.
Thanks to Auvelity and Sunosi, Axsome saw substantial product revenue growth from 2022 to 2023, reaching a 309% year-over-year growth rate. Total revenue also increased five times as much, with Auvelity accounting for $130.1 million and Sunosi $74.8 million of that total.
Axsome is also continuing clinical studies to expand the application of these two drugs to treat sleep and eating disorders. The company hopes to add more bestsellers, such as AXS-12 to treat narcolepsy and AXS-07 to treat migraines.
With Axsome’s current momentum and the announcement of results from its ongoing trials, this stock is a must for your watchlist this year.
Krystal Biotech (KRYS)
Known for its drug Vyjuvek, a dystrophic epidermolysis bullosa (DEB) treatment, Krystal Biotech (NASDAQ:KRYS) has risen to the top of the biotech ranks since last year. Following its FDA approval in May last year, Vyjuvek generated $50.7 million in product revenue for Krystal in 2023.
More than $40 million of that product revenue was generated in Q4 alone, making that number even more impressive. You can probably guess, but this report exceeded expectations and earned Krystal its current position in the market.
Spreading its reach into treatments for respiratory conditions, Krystal is currently in phase 1-2 clinical trials for cystic fibrosis (KB407) and alpha-a antitrypsin deficiency (KB408). Other trials include oncology, dermatology and ophthalmology treatments.
Krystal Biotech is another company surging to the top of biotech with record sales and excellent prospects for continued growth this year.
Catalyst Pharmaceuticals (CPRX)
Catalyst Pharmaceuticals (NASDAQ:CPRX) has had ups and downs since last year but has managed to find its way to the top ranks of biotech time and time again. After coming off of an immaculate Q4 with an 82% increase in revenue and a year-over-year jump of 85.9% in yearly revenue.
Not to mention an earnings beat, with adjusted EPS of $0.63. How did they do it? The answer is the company’s two hot-selling products, Fycompa and Firdapse. Fycompa is an anti-seizure medication and Firapse is used to treat Lambert-Eaton myasthenic syndrome (LEMS), an autoimmune condition common in lung cancer patients.
Both treatments had record sales in 2023, generating $396.5 million in combined product revenue. With current momentum, there is no better time to give Catalyst the attention it is due as a top pick for biotech stocks this year.
On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
