With the interest cuts coming up, it’s an ideal time to consider loading up on the top biotech stocks. These stocks continue to dazzle with game-changing medical breakthroughs and explosive growth potential. Though they can be speculative, a select few biotech stocks to buy can deliver substantial long-term returns for those willing to stomach the risk.
Biotech stocks can be remarkably risky due to the lengthy and uncertain drug development process, regulatory roadblocks, and other issues. Their stock prices correlate to clinical trial outcomes and FDA approvals, making them high-risk, high-reward bets. Nonetheless, you can’t ignore the buzzing biotech sector, which is alive with activity now and poised for even more.
Biotech Stocks to Buy: Vertex Pharmaceuticals (VRTX)
Vertex Pharmaceuticals (NASDAQ:VRTX) is one of the best biotech picks, with a solid track record of top-and-bottom-line beats over the past several years. The consistency in its top-line growth is underpinned by its leadership position in treating Cystic Fibrosis (CF).
It offers a suite of drugs for CF patients, offering transformative outcomes. Its flagship drug, Trikafta, approved for roughly 90% of CF patients, is a potent triple-combination therapy attacking the disease from multiple angles.
In recent quarters though, VRTX stock is attracting investor attention for its robust pipeline of drugs. Perhaps the next big breakthrough for the company, could be its game-changing sickle cell disease treatment, developed in collaboration with CRISPR Therapeutics (NASDAQ:CRSP). Its already green-lit by the FDA, potentially adding millions in incremental sales in the next few years. Additionally, the firm is on the verge of getting FDA approval for VX-548 for the treatment of acute neuropathic pain, another feather in its proverbial cap.
Sarepta Therapeutics (SRPT)
Sarepta Therapeutics (NASDAQ:SRPT) is another biotech firm that has Mr.Market smiling. It develops gene therapy treatments for Duchenne Muscular Dystrophy (DMD), a rare genetic disorder. Two of its key sales drivers in its DMD portfolio are Exondys 51 and Vyondys 53, but lately, we’ve seen its latest gene therapy, Elevidys, drawing significant investor interest.
Elevidys was approved in June last year through the FDA’s accelerated process; meeting the “reasonable” efficacy threshold. Hence, it effectively bypassed full approval, but to broaden its market reach, it’s set for a full approval review this June.
A full approval could potentially add millions in new revenue for Sarepta, with Elevidys already generating impressive numbers despite the limited application. Since its approval in June, it has amassed a whopping $334 million in total sales, blowing past the sales of all other gene therapies combined in the past few years.
CRISPR Therapeutics (CRSP)
CRISPR Therapeutics is a trailblazer in gene editing, progressing toward commercialization at an encouraging pace. Gene editing is a revolutionary breakthrough in the biotech sector, with investors eagerly anticipating its impact.
Not surprisingly, CRSP stock is one of Cathie Wood’s top bets in her ARK Invest portfolio. CRISPR effectively aligns with Wood’s philosophy for betting on transformative, long-term tech stock bets offering superb upside potential ahead.
It’s currently leading seven trials targeting breakthrough treatments for cancer, autoimmune diseases, heart conditions, and other related diseases. CRISPR’s ground-breaking technology can potentially tackle various medical challenges, revolutionizing treatment paradigms.
A major positive for CRISPR is its solid cash balance, which sits on a hefty $2.1 billion financial cushion. This financial fortitude and cutting-edge research make CRSP stock stand out, promising sturdy returns. Hence, if this gene-editing powerhouse hits its stride, its investors could be looking at multi-bagger returns a few years from now.
On the date of publication, Muslim Farooque 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.
