The 3 Most Promising Biotech Innovations in 2023 and the Stocks to Buy


  • Growth-oriented investors are looking at biotech stocks with potential catalysts to push them higher in 2023.  
  • Biogen (BIIB): The company’s ALS drug just received accelerated approval pathway distinction. 
  • Axsome Therapeutics (AXSM): Two high-profile drug candidates are expected to launch this year.  
  • Altimmune (ALT): The company is on the fast track to having an obseity drug in market.  
biotech stocks - The 3 Most Promising Biotech Innovations in 2023 and the Stocks to Buy

Source: Mongkolchon Akesin /

The biotech sector is up 4.76% so far in 2023. This continues the nice run that biotech stocks had in 2022. The gains in biotech were in stark contrast to the broader market. All the major exchanges were down last year with growth investors finding few places to hide. But growth-oriented investors don’t have to look back too far to see how quickly things can change. In 2021, biotech stocks were down 25% and even the most innovative biotech stocks found it hard to get a bid.  

There are many reasons why things are different. There’s a more promising regulatory environment for starters. But many of these companies are also achieving success in clinical trials that make real innovation seem possible. This article will look at three biotech companies that are offering promising innovations that could provide catalysts for their respective stocks in 2023. As I like to do, I’m offering you one large cap, one mid-cap, and one small-cap stock for your consideration. Let’s get to the list! 

BIIB Biogen $293.72
AXSM Axsome Therapeutics $71.16
ALT Altimmune $4.96

Biogen (BIIB) 

Biotechnology stocks, biomedical stocks
Source: aslysun /

The large cap on this list of biotech stocks is Biogen (NASDAQ:BIIB). When it comes to established biotech companies such as Biogen, investors must look at the company’s pipeline. And with Biogen, that’s where the innovation lies.  

On April 26, the U.S. FDA announced it had approved Biogen’s drug, Qalsody, for treating a form of amyotrophic lateral sclerosis (ALS). This makes Qalsody the first available treatment targeting a genetic cause of the disease. Having the drug under the FDA’s accelerated approval pathway is a key step but only the first step. The company will now have to provide additional data on Qalsody’s effectiveness for the FDA to grant traditional approval and to keep the drug on the market.  

But the story doesn’t stop there. The company also plans to launch two high-profile drugs this year. Lecanemab will be Biogen’s second Alzheimer disease treatment and Zuranolone is a drug designed to treat depression.  BIIB stock trades at around 13x earnings and the consensus price target suggests the stock could have an 18% upside from its current price.  

Axsome Therapeutics (AXSM) 

Medical technology network team meeting concept. Doctor hand working smart phone modern digital tablet laptop computer graphics chart interface, sun flare effect photo, PTE
Source: everything possible /

With a market cap of just $3 billion as of April 26, Axsome Therapeutics (NASDAQ:AXSM) qualifies as the mid-cap on this list of innovative biotech stocks. The reasons for buying AXSM stock are similar to those of Biogen. Specifically, the company recently received FDA approval for Auvelity as a treatment for major depressive disorders. And in January the company received positive Phase 3 results for its Alzheimer’s disease candidate. 

Those two developments are what has pushed the stock up over 130% in the last 12 months. But it’s been a different story since the beginning of the year. AXSM stock is down over 10% in 2023 as investors wait for further developments.  

That can happen with biotech stocks, particularly for a company that is not yet profitable and is not projected to be until 2025. Still, if the company is able to successfully launch these two drugs, investors are likely to look back on a share price of around $68 as a bargain. That seems to be the case for at least one analyst. H.C. Wainwright recently boosted Axsome’s price target to $200. That’s nearly a 100% increase from the current consensus estimate. 

Altimmune (ALT) 

A scientist holding up her biotech experiment in a small Petri dish.
Source: Shutterstock

The harmful effects of obesity, including how it contributes to other chronic health issues such as heart disease and diabetes, is making this a front burner issue for biotech companies. Altimmune (NASDAQ:ALT) is a small-cap biotech company that is working to provide a solution.  

The company has three drug candidates, all that are in stage 2 trials. However, its obesity drug, Penvidutide, recently finished its Phase 2 trial of 320 subjects. The results according to the company were “very promising.”  

That news has sent ALT stock up about 19% in the last month. And with a consensus price target of $26.78, the stock could just be getting warmed up. You should keep in mind however, that the stock is just barely trading above a penny stock level at this time. This is a company that is not yet profitable and is bringing in very little revenue.  

On the date of publication, Chris Markoch 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 Publishing Guidelines.

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.


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