The biotech sector is one of my favorite sectors since it is not only constantly growing and with companies that are always doing wonderful research, products, and solutions, but it is also a sector that is constantly innovating and contributing to the health of the human being. If you want to participate as an investor in this sector and take advantage of companies that have great growth opportunities, here are three biotech stocks with potential that you can consider adding to your portfolio.

Nkarta (NKTX)

Nkarta Inc (NASDAQ:NKTX) is a large biopharmaceutical company that many investors rank as a sector leader, as it has a strong innovative approach to developing therapies using modified natural killer (NK) cells, which are a crucial component in the body’s defense against diseases such as cancer and autoimmune disorders.

Quickly mentioning their excellent financial stability, in their latest report they indicated that, thanks to their cost containment measures, they aim to extend their financial capacity until 2026, which is backed by $278.4 million in cash and cash equivalents.

As part of their achievements, they recently obtained FDA clearance for their breakthrough cell therapy targeting lupus nephritis, called NKX019.

This is more than an achievement, it is a big step for the company, as, this therapy has great potential to modify autoimmune diseases while ensuring an NK cell-driven safety profile.

Its partnership with Lupus Therapeutics certainly underscores the company’s dedication to advancing research and evaluating NKX019 through leading academic centers.

Another notable achievement has been the presentation of positive data at the ASH 2023 Annual Meeting on NKX101, which is a ready-to-use NK cell therapy for the treatment of relapsed or refractory acute myeloid leukemia.

Amphastar (AMPH)

Another major player in the biopharmaceutical world is Amphastar Pharmaceuticals (NASDAQ:AMPH), who financially posted incredible numbers in their latest quarterly report.

They posted incredible revenues of $180.6 million and net income of $49.2 million. On top of these incredible numbers, they announced the pricing of $300 million in convertible senior notes.

And as if that wasn’t enough, part of their latest strategic move was to acquire BAQSIMI from Eli Lilly and Company (NYSE:LLY). This is a branded product with growing sales, which will undoubtedly add very good numbers to the company and allow it to continue to grow and expand into approximately 26 countries.

To make this acquisition happen, they paid $500 million upfront, with another $125 million due a year later, and may have to add another $450 million based on some incredible milestones.

Arcutis (ARQT)

To round out the list of the big names with great potential in the biotech sector, we have Arcutis (NASDAQ:ARQT), which specializes in amazing innovative solutions for skin-related challenges.

During their third quarter, they reported incredible results, earning $38.1 million in total revenue, with a significant boost from the $8.1 million generated by ZORYVE cream.

The FDA approval of ZORYVE for expanded use in the treatment of plaque psoriasis for people as young as 6 years old adds a great compassionate approach to it, covering a broader age group.

One of its great achievements has been ZORYVE foam, which is a steroid-free remedy for seborrheic dermatitis. This is a significant breakthrough, not only for the company but for the population as a whole, as seborrheic dermatitis affects more than 10 million people in the United States.

The FDA approval of ZORYVE topical foam 0.3% for people 9 years and older is a game changer, the first in two decades with a new mechanism of action.

But Arcutis has not only had these accomplishments, it is on a constant quest to address atopic dermatitis, and they have achieved a breakthrough in FDA sNDA acceptance of Roflumilast 0.15% cream. This makes it one of those biotech stocks with potential.

As of this writing, Gabriel Osorio-Mazzilli did not hold (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 (no position)