Biotech stocks are the stocks of the companies involved in using living organisms for the development of medical and agricultural products. The term is also increasingly used for all the companies that manufacture novel drugs, with or without the use of bio-organisms.
Biotechnology sector and biotech stocks are considered to be highly risky and volatile investments; however, they are still the most rewarding ones. Biotech stocks have almost always beaten the S&P 500 index for the past many years. Thus, biotech stocks turn out to be one of the scariest, riskiest, yet most exciting and rewarding investments.
Ticker | Company Name | Last Price | 1-Year Return | Market Cap |
|---|---|---|---|---|
| VRTX | Vertex Pharmaceuticals Incorporated | $200.50 | -29.45% | 51.9B |
| REGN | Regeneron Pharmaceuticals, Inc. | $586.35 | -8.01% | 62.5B |
| ALXN | Alexion Pharmaceuticals, Inc. | #N/A | #N/A | #N/A |
| INCY | Incyte Corporation | $79.30 | -22.32% | 17.4B |
| BMRN | BioMarin Pharmaceutical Inc. | $77.04 | -37.87% | 14.1B |
| SGEN | Seattle Genetics, Inc. | $145.60 | -15.03% | 26.4B |
| NBIX | Neurocrine Biosciences, Inc. | $98.52 | -21.81% | 9.3B |
| ACAD | ACADIA Pharmaceuticals Inc. | $21.46 | -51.59% | 3.4B |
| EXEL | Exelixis, Inc. | $16.73 | -32.40% | 5.2B |
| SRPT | Sarepta Therapeutics, Inc. | $66.79 | -57.85% | 5.3B |
| BLUE | bluebird bio, Inc. | $25.98 | -60.62% | 1.8B |
| RGEN | Repligen Corporation | $209.92 | 52.52% | 11.5B |
| FGEN | FibroGen, Inc. | $13.27 | -69.39% | 1.2B |
| NKTR | Nektar Therapeutics | $16.51 | -30.19% | 3.0B |
| ARWR | Arrowhead Pharmaceuticals, Inc. | $68.37 | 41.44% | 7.1B |
| FOLD | Amicus Therapeutics, Inc. | $8.82 | -42.01% | 2.3B |
| AGIO | Agios Pharmaceuticals, Inc. | $50.19 | -4.91% | 3.1B |
| XNCR | Xencor, Inc. | $31.86 | -4.53% | 1.9B |
| CORT | Corcept Therapeutics Incorporated | $20.29 | 21.79% | 2.4B |
| OPK | OPKO Health, Inc. | $3.64 | -37.78% | 2.4B |
| RGNX | REGENXBIO Inc. | $35.02 | -5.81% | 1.5B |
| VCYT | Veracyte, Inc. | $39.25 | 29.79% | 2.6B |
| ENTA | Enanta Pharmaceuticals, Inc. | $42.00 | -16.53% | 848.2M |
| FATE | Fate Therapeutics, Inc. | $86.19 | 159.22% | 8.1B |
| SGMO | Sangamo Therapeutics, Inc. | $9.94 | -10.45% | 1.4B |
| INVA | Innoviva, Inc. | $13.36 | -3.82% | 927.2M |
| PACB | Pacific Biosciences of California, Inc. | $30.35 | 702.91% | 6.0B |
| CDXS | Codexis, Inc. | $20.95 | 77.24% | 1.4B |
| VNDA | Vanda Pharmaceuticals Inc. | $19.64 | 81.35% | 1.1B |
| VCEL | Vericel Corporation | $53.24 | 221.89% | 2.5B |
| RVNC | Revance Therapeutics, Inc. | $29.99 | 22.61% | 2.1B |
| CCXI | ChemoCentryx, Inc. | $14.37 | -73.24% | 1.0B |
| CTMX | CytomX Therapeutics, Inc. | $5.55 | -29.92% | 360.8M |
| ADVM | Adverum Biotechnologies, Inc. | $2.36 | -86.62% | 231.1M |
| CVM | CEL-SCI Corporation | $7.68 | -42.08% | 328.2M |
| RIGL | Rigel Pharmaceuticals, Inc. | $4.12 | 58.46% | 701.1M |
| XXII | 22nd Century Group, Inc. | $3.16 | 295.00% | 513.7M |
Factors to Consider Before Investing in Biotech Stocks
There are various aspects that investors need to consider before investing in the biotechnology sector and biotech stocks. There is no doubt that biotech stocks provide high rewards. Biotech stocks have almost always generated very high earnings growth and high overall returns for investors.
However, investors must also be aware of the risks and volatility involved. The success or failure of biotech companies depends on whether the clinical trials fructify or not. Additionally, biotech companies and their stocks are largely affected by regulatory decisions, including FDA approvals.
Therefore, investors must keep track of the current drugs of a company, their efficacy, and the potential pipeline before investing in biotech stocks of a company. Poor selection of stock may lead investors to invest in biotech companies that only end up burning their resources, with no returns in exchange.
Which Biotech Stocks Should I Buy?
To make the selection easier and more effective for you, we have compiled a list of the best biotech stocks. The choice must be made after a thorough analysis of the company, its pipeline, and future potential.
Despite being risky, biotech stocks are the way to the future. The industry is almost recession-proof, and biotech stocks can serve as defensive stocks in the portfolio. Many biotech companies are increasing the sales of their current drugs, while many others are in the process of developing new and revolutionary drugs. The future of biotech stocks is volatile but fascinating.
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