Investing in biotech stocks is not for the faint of heart. The sector is known for its volatility, offering a unique blend of high risk and high reward. However, the companies in the biotech space are consistently pushing the envelope, making them excellent investment opportunities in a perfect storm situation.
One of the biggest catalysts for the biotech sphere is the expected cutback in interest rates later this year. Biotech stocks are considered risky investments, and lower interest rates should spur increased investment in the sector. However, backing the right horse is the key to making the most out of your investment in the biotech industry.
IntraCellular Therapies (ITCI)
IntraCellular Therapies (NASDAQ: ITCI) is one of the hottest biotech stocks in the market. ITCI stock has increased more than 45% in the past six months, and its antipsychotic medication, Caplyta, continues to shine in its clinical trials. Caplyta is already FDA-approved for the treatment of schizophrenia and bipolar I or II disorder. Recent trial results have shown its promise in treating other neurological disorders including major depressive disorder (MDD).
Viking Therapeutics (VKTX)
Viking Therapeutics (NASDAQ: VKTX) is another biotech stock that has been on fire, having risen over 528% in the past six months. It is among the few biotech players looking to make a splash in the weight loss industry, a market that’s likely to be massive. Viking aims to tackle the weight loss market with a revolutionary injection and pill.
Novo Nordisk (NVO)
Novo Nordisk (NYSE: NVO) is a heavyweight in the biotech industry, having been in the game for over a century. It boasts a vast pipeline of innovative drugs, particularly in hemostasis and hormone regulation, marked by robust fundamentals underpinning its operations. With a hefty cash and short investments balance exceeding $4.47 billion, Novo Nordisk has the impetus to continue expanding its business.
These three companies have shown the most potential in commercializing their pipeline candidates while demonstrating a solid financial footing. As the biotech industry continues to evolve, investors should keep a close eye on these companies for potential opportunities.
