Biotechnology stocks come with a great deal of volatility and risk. Early stage biotech companies can lose 80% of their value overnight if they report unfavorable information regarding a failed FDA trial.
However…biotechs can offer magnificent returns.
I believe that every investor should have at least one biotech company in their portfolio. Here are ten that you may want to consider:
1. Celgene (NASDAQ: CELG)
With a $60 billion market cap, Celgene is one of the largest biotech companies in the world. It’s a biopharmaceutical company primarily engaged in the discovery, development and commercialization of innovative therapies designed to treat cancer and immune-inflammatory related diseases.
2. BioMarin (NASDAQ: BMRN)
This company develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions.
3. FivePrime (NASDAQ: FPRX)
FivePrime Therapeutics is a small clinical-stage biotechnology company focused on discovering and developing novel protein therapeutics.
4. The Medicines Company (NASDAQ: MDCO)
The Medicines Company provides innovative, cost-effective acute care hospital products to the worldwide hospital marketplace.
5. Esperion Therapautics (NASDAQ: ESPR)
The leader in the cholesterol drug category.
6. Nektar Therapeutics (NASDAQ: NKTR)
This Company is working on a non-addictive opioid! the drug they are working on can provide patients with pain relief, without the addictive qualities! How exciting!
7. Sangamo (NASDAQ: SGMO)
Despite the hype regarding CRISPR, Sangamo is the leader in gene editing…and is the first company outside of China to use gene editing in a human being. We will receive the data from this clinical trial at the end of the summer; it could be a huge milestone.
8. Bluebird Bio (NASDAQ: BLUE)
Bluebird is a clinical stage biotech that specializes in cancer immunotherapies, drugs that help the immune system identify and kill cancer cells.
9. Exelixis (NASDAQ: EXEL)
Exelixis is a cancer-focused biotech, with two drugs already on the market and several more in the pipeline.
10. Ziopharm (NASDAQ: ZIOP)
A biopharmaceutical company engaged in the development and commercialization of small molecule and synthetic biology approaches to new cancer therapies.
Companies like Celgene and BioMarin are proven winners, and will likely continue to be so. The other companies on this list are developmental and smaller, so they come with a larger degree of risk.
Each company, however, has very good management and promising drug prospects that could add significant shareholder value in the future.
Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock. Rather, it is presented for readers’ education and consideration when making their own investment decisions. The author is long Sangamo.