One of the ways to make millions from the market is to identify and invest in early-stage companies. If the business takes off, multi-fold returns are in the offering. Of course, the risk involved is high and investors should limit portfolio exposure to these companies at 5% to 10%.

One sector that’s worth researching for early-stage ideas is biotech. There are dozens of listed clinical-stage biotech stocks. If clinical trials deliver positive results and the product is commercialized, the revenue upside potential can be significant.

Again, there will be multiple stories where clinical trials fail and the biotech stock plunges. However, it’s a good idea to create a small sub-portfolio of clinical-stage biotech stocks. Even if one or two ideas fire, the wealth creation can be immense.

This column focuses on three clinical-stage biotech stocks with promising trial candidates. Over a period of 24 to 36 months, these stocks can likely be 10-baggers.

Entera Bio (ENTX)

Entera Bio (NASDAQ:ENTX) is an attractive clinical-stage biotech stock that has rallied 100% in the last 12 months. However, the stock remains attractive at a market valuation of $63 million and fresh exposure can be considered at current levels.

As an overview, Entera Bio is involved in the development of orally delivered macromolecules, including peptides and other therapeutic proteins. The company’s most advanced product candidate, EB613, is for the treatment of high-risk, post-menopausal osteoporosis. This product is currently entering the third phase of clinical trials. Further, EB612 is for treating hypoparathyroidism and is in the first phase.

According to estimates, post-menopausal osteoporosis impacts more than 200 million women globally. Further, new osteoporosis therapy has been approved since 2019. Therefore, EB613 has a big addressable market and has significant revenue potential. That is a key reason to be bullish on ENTX stock.

I must add here that Entera Bio is well funded with a cash runway through Q3 2025. Therefore, there are no immediate dilution concerns. As clinical trials progress, I expect ENTX stock to surge higher.

Adicet Bio (ACET)

Adicet Bio (NASDAQ:ACET) stock has declined sharply by 53% in the last 12 months. I see this correction as a golden buying opportunity for this micro-cap with a high-risk high-reward potential. My view is underscored by multiple positive developments.

Last month, the U.S. Food and Drug Administration approved a fast-track designation for “ADI-001 for the potential treatment of relapsed/refractory class III or class IV lupus nephritis.” The fast-track designation underscores the “urgent need for new therapies for this chronic disease.”

In other news, the U.S. FDA has cleared the company’s Investigational New Drug (IND) application to evaluate ADI-270. The latter is the “first gamma delta 1 CAR T candidate to enter clinical development for solid tumors.”

Clearly, business progress has been positive and the pipeline looks attractive. On the financial front, the biotech company has a cash runway into the second half of 2026. Therefore, there are no dilution concerns for the next 24 months. It’s a matter of time before ACET stock surges higher from oversold levels.

Actinium Pharmaceuticals (ATNM)

Actinium Pharmaceuticals (NYSE:ATNM) is another attractive clinical-stage biotech company with multibagger returns potential. It’s worth noting that ATMN stock has remained sideways in the last 12 months. I expect a breakout on the upside considering the progress related to the pipeline.

The company’s most advanced stage product candidate is Iomab-B. The candidate is currently in Phase 3 SIERRA clinical trial for active relapsed or refractory Acute Myeloid Leukemia prior to receiving a bone marrow transplant. The initial results have been encouraging and are a potential catalyst for ATMN stock surging higher.

Further, Actimab-A is in the first phase of clinical trials among targeted conditioning and targeted radiotherapy candidates. The candidate is being studied as a “single agent and in combination with chemotherapies and targeted therapies” for patients with relapsed or refractory acute myeloid leukemia. The pipeline is, therefore, attractive and the late-stage candidate is the catalyst for a big rally.

On the date of publication, Faisal Humayun 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.