S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)
S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)
S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)
S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)

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 ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyCurrent PricePE RatioMarket CapVolumeAverage VolumeIndicator(s)
Thermo Fisher Scientific Inc. stock logo
Thermo Fisher Scientific
29.49$217.10 billion3,295859,900
Novartis AG stock logo
7.85$177.61 billion26,9962.28 millionAnalyst Upgrade
Vertex Pharmaceuticals Incorporated stock logo
Vertex Pharmaceuticals
23.18$73.53 billion7,2361.07 million
GSK plc stock logo
10.25$62.92 billion55,2239.18 millionAnalyst Report
Moderna, Inc. stock logo
4.27$55.75 billion53,0694.25 millionAnalyst Upgrade
Takeda Pharmaceutical Company Limited stock logo
Takeda Pharmaceutical
25.43$41.80 billion48,0151.86 million
IQVIA Holdings Inc. stock logo
35.86$40.06 billion4,465764,781Analyst Downgrade
BioNTech SE stock logo
2.83$35.54 billion3,947724,923Analyst Report
Cognizant Technology Solutions Co. stock logo
Cognizant Technology Solutions
14.68$32.77 billion15,2432.33 millionPositive News
Illumina, Inc. stock logo
N/A$31.75 billion8,8431.92 million
AmerisourceBergen Co. stock logo
16.94$30.61 billion2,206761,419
Seagen Inc. stock logo
N/A$28.26 billion2,8041.12 millionNews Coverage
Royalty Pharma plc stock logo
Royalty Pharma
55.52$25.96 billion15,8221.40 million
Alnylam Pharmaceuticals, Inc. stock logo
Alnylam Pharmaceuticals
N/A$25.46 billion32,488747,587News Coverage
Gap Down
argenx SE stock logo
N/A$21.40 billion387204,143
ICON Public Limited stock logo
ICON Public
86.59$17.76 billion4,960374,610Analyst Report
News Coverage
PerkinElmer, Inc. stock logo
25.41$17.13 billion1,110667,970
BeiGene, Ltd. stock logo
N/A$16.99 billion409170,663News Coverage
Catalent, Inc. stock logo
32.48$16.54 billion3,1001.23 millionAnalyst Report
Bio-Rad Laboratories, Inc. stock logo
Bio-Rad Laboratories
N/A$15.41 billion515
Bio-Rad Laboratories, Inc. stock logo
Bio-Rad Laboratories
N/A$14.55 billion60107,210Positive News
Horizon Therapeutics Public Limited stock logo
Horizon Therapeutics Public
18.95$14.15 billion9,1672.55 millionPositive News
Alleghany Co. stock logo
32.69$11.30 billion46044,678
Charles River Laboratories International, Inc. stock logo
Charles River Laboratories International
24.22$10.62 billion2,602516,389
United Therapeutics Co. stock logo
United Therapeutics
16.78$10.09 billion1,865383,976
Clarivate Plc stock logo
N/A$8.15 billion28,1945.27 millionNews Coverage
iShares Biotechnology ETF stock logo
iShares Biotechnology ETF
N/A$7.95 billion169,0961.52 million
Legend Biotech Co. stock logo
Legend Biotech
N/A$6.94 billion5,377542,822Upcoming Earnings
Syneos Health, Inc. stock logo
Syneos Health
23.00$6.28 billion1,176448,901Analyst Report
News Coverage
Ionis Pharmaceuticals, Inc. stock logo
Ionis Pharmaceuticals
N/A$6.27 billion1,871708,674News Coverage
Exelixis, Inc. stock logo
21.19$5.73 billion9,7491.96 millionNews Coverage
Lumentum Holdings Inc. stock logo
29.43$5.35 billion1,372882,936Analyst Report
Halozyme Therapeutics, Inc. stock logo
Halozyme Therapeutics
15.34$5.35 billion6,5401.66 million
Medpace Holdings, Inc. stock logo
27.11$4.84 billion3,204220,734Analyst Report
News Coverage
Bloom Energy Co. stock logo
Bloom Energy
N/A$4.53 billion9,1154.65 million
Evoqua Water Technologies Corp. stock logo
Evoqua Water Technologies
75.90$4.33 billion1,015435,085News Coverage
Beam Therapeutics Inc. stock logo
Beam Therapeutics
N/A$4.00 billion5,1021.27 millionNews Coverage
Azenta, Inc. stock logo
1.76$3.82 billion888701,249Gap Down
Denali Therapeutics Inc. stock logo
Denali Therapeutics
N/A$3.75 billion3,365635,960Positive News
10x Genomics, Inc. stock logo
10x Genomics
N/A$3.67 billion7,8941.07 million
Fabrinet stock logo
18.22$3.56 billion476196,209
Amicus Therapeutics, Inc. stock logo
Amicus Therapeutics
N/A$3.25 billion23,0252.34 millionNews Coverage
Abcam plc stock logo
N/A$3.22 billion515173,633Upcoming Earnings
Analyst Upgrade
News Coverage
Positive News
Vir Biotechnology, Inc. stock logo
Vir Biotechnology
2.74$2.91 billion5,4121.04 million
Fate Therapeutics, Inc. stock logo
Fate Therapeutics
N/A$2.67 billion14,8811.35 million
BioCryst Pharmaceuticals, Inc. stock logo
BioCryst Pharmaceuticals
N/A$2.54 billion26,5921.97 million
Immunocore Holdings plc stock logo
N/A$2.41 billion1,830269,075Analyst Report
Gap Up
Novavax, Inc. stock logo
N/A$2.33 billion63,5334.30 million
Recursion Pharmaceuticals, Inc. stock logo
Recursion Pharmaceuticals
N/A$2.11 billion4,882921,041
ImmunityBio, Inc. stock logo
N/A$1.84 billion14,419907,996News Coverage
Positive News
Krystal Biotech, Inc. stock logo
Krystal Biotech
N/A$1.81 billion769157,293
Olink Holding AB (publ)
N/A$1.79 billion732130,406
Iovance Biotherapeutics, Inc. stock logo
Iovance Biotherapeutics
N/A$1.75 billion16,7782.09 million
Hercules Capital, Inc. stock logo
Hercules Capital
121.83$1.71 billion2,023873,810
Revance Therapeutics, Inc. stock logo
Revance Therapeutics
N/A$1.70 billion96,979807,780Options Volume
News Coverage
Gap Up
Vaxcyte, Inc. stock logo
N/A$1.64 billion978384,516
SpringWorks Therapeutics, Inc. stock logo
SpringWorks Therapeutics
N/A$1.47 billion4,623930,822News Coverage
Phreesia, Inc. stock logo
N/A$1.43 billion16,922386,602Analyst Report
News Coverage
Gap Up
Sana Biotechnology, Inc. stock logo
Sana Biotechnology
N/A$1.34 billion8,1581.25 millionNegative News
Enanta Pharmaceuticals, Inc. stock logo
Enanta Pharmaceuticals
N/A$1.32 billion411195,994Positive News
Adaptive Biotechnologies Co. stock logo
Adaptive Biotechnologies
N/A$1.29 billion7,3771.10 million
REGENXBIO Inc. stock logo
14.98$1.25 billion766289,659
3D Systems Co. stock logo
3D Systems
5.27$1.25 billion7,6141.19 million
Chinook Therapeutics, Inc. stock logo
Chinook Therapeutics
N/A$1.21 billion2,777523,682Positive News
ImmunoGen, Inc. stock logo
N/A$1.19 billion14,4413.01 millionAnalyst Revision
Simulations Plus, Inc. stock logo
Simulations Plus
103.12$1.19 billion17106,502News Coverage
Cassava Sciences, Inc. stock logo
Cassava Sciences
N/A$1.15 billion8,5254.51 million
Morphic Holding, Inc. stock logo
N/A$1.12 billion149290,794Analyst Report
Amyris, Inc. stock logo
N/A$1.05 billion69,8218.38 million
Rocket Pharmaceuticals, Inc. stock logo
Rocket Pharmaceuticals
N/A$1.04 billion9,280555,305
Avid Bioservices, Inc. stock logo
Avid Bioservices
9.44$1.04 billion4,099414,194Analyst Revision
Standex International Co. stock logo
Standex International
16.83$1.02 billion635,467
TG Therapeutics, Inc. stock logo
TG Therapeutics
N/A$996.55 million31,7822.41 million
Replimune Group, Inc. stock logo
Replimune Group
N/A$944.78 million1,532232,027
Relmada Therapeutics, Inc. stock logo
Relmada Therapeutics
N/A$927.35 million207284,152Analyst Report
Tekla Healthcare Investors stock logo
Tekla Healthcare Investors
N/A$887.87 million20096,105
Sangamo Therapeutics, Inc. stock logo
Sangamo Therapeutics
N/A$878.25 million16,4001.46 millionGap Down
Arcellx, Inc. stock logo
N/A$870.70 million4,434299,548
IGM Biosciences, Inc. stock logo
IGM Biosciences
N/A$864.64 million1,896202,067
Zealand Pharma A/S stock logo
Zealand Pharma A/S
N/A$824.51 million1,2623,387News Coverage
Gap Up
SLR Investment Corp. stock logo
SLR Investment
71.15$818.26 million444212,778Dividend Announcement
Cogent Biosciences, Inc. stock logo
Cogent Biosciences
N/A$794.52 million5,5771.33 millionNews Coverage
AnaptysBio, Inc. stock logo
N/A$761.92 million569369,985Analyst Report
Analyst Revision
Wabash National Co. stock logo
Wabash National
37.24$741.36 million1,562288,271
Dyne Therapeutics, Inc. stock logo
Dyne Therapeutics
N/A$734.99 million1,125232,313Analyst Report
Dyne Therapeutics, Inc. stock logo
Dyne Therapeutics
N/A$734.99 million1,125232,313Analyst Report
SomaLogic, Inc. stock logo
N/A$669.59 million3,0012.00 million
Century Therapeutics, Inc. stock logo
Century Therapeutics
N/A$637.67 million33992,237
Viridian Therapeutics, Inc. stock logo
Viridian Therapeutics
N/A$627.26 million1,8721.59 million
Seer, Inc. stock logo
N/A$622.53 million661331,247
908 Devices Inc. stock logo
908 Devices
N/A$609.69 million101364,004
Adicet Bio, Inc. stock logo
Adicet Bio
N/A$590.04 million800374,377
Kezar Life Sciences, Inc. stock logo
Kezar Life Sciences
N/A$584.26 million5,449728,887Gap Down
Inhibrx, Inc. stock logo
N/A$576.92 million2,540334,860Positive News
Transcat, Inc. stock logo
53.55$570.10 million16,45724,410News Coverage
Vera Therapeutics
N/A$555.21 million397,606Gap Down
bluebird bio, Inc. stock logo
bluebird bio
N/A$546.78 million125,4478.87 millionPositive News
Inovio Pharmaceuticals, Inc. stock logo
Inovio Pharmaceuticals
N/A$516.26 million32,7985.66 million
Ocugen, Inc. stock logo
N/A$506.77 million24,1484.79 million
Runway Growth Finance Corp. stock logo
Runway Growth Finance
14.12$489.12 million70043,527
 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.

What Are 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.

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 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.

Qualities 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.

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 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)

Some Final Thoughts 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 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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