Amid brewing economic concerns, investors seeking upside opportunities in the equities sector should consider biotech stocks to buy for one simple reason: extraordinary and permanent relevance. No matter what happens to the global markets, whether continued volatility or a fresh rally, people will always look to medical advancements to maintain and improve their health. Therefore, biotechs are somewhat detached from traditional economic barometers.
Another major catalyst for no-brainer biotech stocks to buy is the hard numbers. According to information by Grand View Research, the market size for the global biotech industry reached slightly over $1 trillion. By 2028, experts project that this segment will generate revenue of $2.44 trillion, representing a compound annual growth rate of 15.8%. Simply put, there’s good money in this space.
To be fair, biotech stocks to buy are often subject to wild price swings. Therefore, anybody participating in this sector must gird themselves for a wild ride. As well, you should practice strict money management along with sound principles such as diversification.
But if you’re ready to accept some heat in exchange for the potential of massive upside, below are some exciting biotech stocks to buy.
|GBT||Global Blood Therapeutics||$24.48|
One of the larger biotech stocks to buy featuring a market capitalization of over $29 billion at time of writing, Biogen (NASDAQ:BIIB) specializes in neuroscience. The company aims to provide viable treatments for vexing and life-threatening diseases such as multiple sclerosis, Alzheimer’s, Parkinson’s and amyotrophic lateral sclerosis (ALS). As well, the company conducts research on less-common diseases such as spinal muscular atrophy (SMA) and progressive supranuclear palsy (PSP).
The key advantage to Biogen is that conditions such as ALS have garnered tremendous mainstream attention. Presumably, then, its underlying marketing machinery is better able to convince investors to acquire BIIB shares. More importantly, Biogen is one of the more stable biotech stocks to buy, consistently producing strongly positive free cash flow.
On a year-to-date basis, BIIB has taken a bit of a slide, dipping down nearly 16%. However, this could be a discounted opportunity as the biotech community works hard to address neurological conditions.
Harmony Biosciences (HRMY)
Making a hard transition from one of the most popular biotech stocks to buy to a lesser-known entity, Harmony Biosciences (NASDAQ:HRMY) nevertheless packs quite a punch. Specializing in the treatment of narcolepsy — a sleeping disorder which sparks extreme daytime drowsiness — Harmony seeks to help the 200,000 Americans and approximately 3 million worldwide sufferers gain relief.
While the company targets a smaller disease/condition profile, fundamentally, this dynamic can also be advantageous. For instance, Harmony is one of the fastest-growing biotech stocks to buy. In 2018, the firm reported no revenue but by 2020, it posted sales of just under $160 million. In the following year, Harmony rang up the top line to the tune of $305.4 million.
Better yet, the firm also secured net income of $34.6 million in 2021, demonstrating the viability of the business. On a YTD basis, HRMY is just a hair underneath parity, implying resilience during rough times.
Global Blood Therapeutics (GBT)
One of the biotech stocks to buy that is poised to gain serious environmental, social and governance (ESG) cred, Global Blood Therapeutics (NASDAQ:GBT) is dedicated to the discovery, development and delivery of life-changing treatments, per its website. Specifically, buzz centers around its research on sickle-cell diseases (SCDs).
An inherited blood disorder that impacts hemoglobin, data from the Centers for Disease Control and Prevention states that SCD affects approximately 100,000 Americans. Further, the disease is more pronounced in historically disenfranchised communities, giving Global Blood a higher calling regarding the broader push for social equity and fair treatment.
As with Harmony Biosciences above, Global Blood is one of the fastest-growing biotech stocks to buy. In 2019, the company only posted revenue of $2.1 million. By 2021, sales came in just under $195 million. With a YTD loss of 21%, GBT has the makings of a potential discounted investment.
CRISPR Therapeutics (CRSP)
What if, utilizing the most advanced genetics-based technologies, patients could basically “upload” therapies for whatever ails them? Or, what if you could edit the genetic sequence of your child prior to birth to correct certain issues before they become life-threatening conditions? That’s the long-term promise inherent in CRISPR Therapeutics (NASDAQ:CRSP), a company specializing in gene editing.
On the surface, the concept of targeted genetically defined diseases and engineering next-generation cellular therapies appears to be a win-win solution. However, the matter will likely encounter vigorous medical ethics debates. In addition, the cost of such therapies could end up separating the haves and have nots in a grossly unfavorable manner.
Still, the potential for this company is profound, one that’s almost guaranteed to attract interest from investors and casual observers alike. CRSP stock is down 7% YTD, although it has been a fast mover in the trailing month, up 69%.
Emergent Biosolutions (EBS)
With Emergent Biosolutions (NYSE:EBS) onward, we’re going to dive into the highly speculative portion of no-brainer biotech stocks to buy. Emergent develops, manufactures and delivers protections against public health threats through innovative vaccines and therapeutics, per its website. Now, the idea of vaccines has become controversial due to the coronavirus pandemic. However, the monkeypox outbreak may have given EBS stock significant relevance.
How so? According to the Centers for Disease Control and Prevention, the monkeypox virus is closely related to the virus that causes smallpox, meaning that the smallpox vaccine can protect people from getting monkeypox. Emergent is in the picture because of Tembexa (brincidofovir), which is the first smallpox oral antiviral product approved by the Food and Drug Administration.
To be clear, I’m not suggesting that the monkeypox outbreak will start rippling through the western world like Covid-19 did. But if this latest threat rears its ugly head, EBS offers a cynical opportunity.
CinCor Pharma (CINC)
Often called the silent killer, nearly half of adults in the U.S. (47% of 116 million) have hypertension, according to the CDC. Some cases are particularly problematic as they can lead to severe life-threatening diseases. Fortunately, CinCor Pharma (NASDAQ:CINC) is in the business of addressing difficult-to-treat hypertension and improving the lives of patients suffering from cardio-renal diseases.
According to the company’s website, CinCor is developing baxdrostat (CIN-107), a treatment of multiple diseases where aldosterone plays a significant role in disease pathophysiology. Currently, CIN-107 is undergoing Phase 2 clinical trials in hypertension, hypertension in chronic kidney disease and primary aldosteronism.
Although it’s one of the more exciting biotech stocks to buy with strong upside potential, the operative word is potential. Since CinCor is a pre-revenue company, you’re making a wager on the biotech firm’s possible ability to manufacture an approved product for commercial distribution. In other words, the science is compelling but you should bet responsibly.
Vigil Neuroscience (VIGL)
Another aspirational company, Vigil Neuroscience (NASDAQ:VIGL) focuses on both rare and common neurodegenerative diseases. Specifically, Vigil does this by restoring the vigilance of microglia, the brain’s sentinel immune cells. Further, the biotech has an advanced therapeutic program that aims to develop highly selective activators expressed on microglia.
Vigil’s lead candidate is VGL101, a highly targeted fully human monoclonal antibody designed for the treatment of rare genetically defined microgliopathies. Currently, VGL101 is undergoing Phase 1 clinical trials for axonal spheroids and pigmented glia (ALSP) and preclinical studies for Alzheimer’s Disease.
Although it’s leveraging exciting scientific developments, the main knock on VIGL stock is its speculative nature. For one thing, the underlying company is a pre-revenue outfit, meaning that you’re essentially taking shots in the dark. Second, VIGL is down 75% YTD.
But the positive is that during the week concluded June 3, VIGL soared almost 20%. If you like swinging for the fences, give Vigil a second look.
On the date of publication, Josh Enomoto 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.