Biotech companies develop new medicines, vaccines, or medical devices. They use advanced technologies and medical science to do so. Most biotech stocks trade at low prices and with a successful FDA approval or even promising news can send these stocks sky-high overnight. Below are the best biotech stocks to buy now according to analysts, all these biotech stocks have a 50%+ implied upside according to consensus estimates.
Acadia Pharmaceuticals (NASDAQ: ACAD)
ACADIA Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and sale of drugs that address unmet medical needs in central nervous system disorders. The company offers NUPLAZID (pimavanserin) for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis
ACAD has a cash runway of 3 years based on its current free cash flow. ACAD has enough assets to cover both long and short term liabilities, moreover they are debt free. Analysts forecast earnings to growth at 77% per year and become profitable within 3 years. Making them one of the best biotech stocks to buy now.
Fate Therapeutics (NASDAQ: FATE)
Fate Therapeutics is a clinical-stage biopharmaceutical company. They develop first-in-class cellular immunotherapies for patients with cancer. They believe that better cell therapies start with better cells.
Annual revenue is forecasted to grow at 70% per year. They have zero debt and assets heavily outweigh liabilities, In other words this company is in a strong financial position. As far as small biotech companies this one is relatively stable with huge potential.
Pieris Pharmaceuticals (NASDAQ: PIRS)
Pieris Pharmaceuticals combines leading protein engineering capabilities and deep insights into molecular drivers of disease to develop medicines that drive local biology to produce superior clinical outcomes for patients.
PIRS has had an incredible last year with the share price up more than 180%. However they have a long way to go trading at a small market cap of just 375MM. Meanwhile they has a cash runway of more than 3 years based on their current free cash flow. Also they are debt free with enough assets to cover both long and short term liabilities. Analysts forecast revenue to growth at 20% per year. PIRS is not expected to become profitable in the next 3 years.
Check out more small cap stock ideas HERE