Biotech stocks are notorious for being some of the most volatile and unpredictable on the market. With clinical trials and FDA approvals creating potential leaps or falls in what seems like an instant, there is no denying the risk involved. However, equal to this risk is the possible upside that proves to be one of the most profitable for investors if things go well.

These three biotech stocks represent the top picks for April and beyond. They have exciting new advances in their latest drugs and seemingly endless potential to rise in the near future. If you can accept the volatility and risk involved with biotech stocks, look no further for the best buys available now.

We’ll detail the current clinical progress of these companies’ most recent drugs and products and what their future release and approval could mean for these stocks.

Recursion Pharmaceuticals (RXRX)

Recursion Pharmaceuticals (NASDAQ:RXRX) is far more than just another biotech company with a few popular drugs on the market. Its offerings extend into technology, including its very own Recursion Operating System, which utilizes cutting-edge data generation and advanced computations to produce the most effective class of drugs.

Recursion utilizes AI in its production and research to accelerate the fabrication and testing of different therapies. The technological advancements and applications that Recursion uses enhance its efficiency and lower the expenses for clinical trials. Recursion sells its software as a diversified stream of revenue. 

Besides that unique edge, Recursion still generates the most revenue from collaborating with other drug producers. In addition, Recursion is currently undergoing clinical trials of its drug, REC-4881, as a treatment for Familial Adenomatous Polyposis and cancer. The trial’s second phase started this year and will end in 2027. 

While Recursion has yet to cross over the profit line, its revenue growth is expected to skyrocket along with the demand for its drug development software. If the company’s clinical trials end with good results and its software is implemented more into mainstream drug development, there is little doubt that this stock won’t take off.

Iovance Biotherapeutics (IOVA)

Iovance Biotherapeutics (NASDAQ:IOVA) is another biotech company that offers investors a unique advantage over its competitors. Iovance is focused primarily on cancer treatments and specializes in developing tumor-infiltrating lymphocyte (TIL) therapy . 

TIL are naturally occurring white-blood cells that the body produces to fight cancer. However, there is a possibility in some patients that cancer can render them useless. TIL therapy from Iovance is a highly personalized treatment that involves extracting natural TIL, mass-manufacturing it outside a patient’s body, and returning it to the patient. 

Iovance gained FDA approval for one of its TIL treatments, Amtagvi, earlier this year. The drug is a Melanoma treatment that targets only a small percentage of patients but opens many doors for Iovance in the future. 

Iovance has other drugs available, such as its Proleukin treatment, which is also on the market and generating revenue. Iovance is another company that has yet to reach profitability, but the future revenue its TIL treatments could create could mean big wins for investors who buy now. 

Exelixis, Inc. (EXEL)

Exelixis, Inc. (NASDAQ:EXEL) is another producer of cancer treatments, with several products already approved and on the market. The company’s selling point comes from its stellar financials. Unlike many of its peers, Exelixis is a profitable company and has been so for the past six years. 

Exelisis’s best-selling product is part of a long-time partnership with Bristol Myers Squibb. The product is called Cabometyx, treating renal cell carcinoma (RCC) and hepatocellular carcinoma (HC), along with common types of kidney and liver cancer.

Exlixis’s stable cash flow allows it to invest in developing new products and extending its market offerings, making it safer than many other biotech stocks. If you want to invest in biotech while minimizing the risk associated with the sector, this stock might be your best bet.

On the date of publication, Joel Lim 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.