Biotech stocks are on the rise despite having taken a beating after President Donald Trump tapped Robert F. Kennedy Jr. to lead the Department of Health and Human Services.
Kennedy's potential impact on biotech is something of a black box. He's a well-known vaccine skeptic and has criticized weight-loss drugs. But he has also said he's open to the use of psychedelics in therapeutic settings. Trump has said he will let Kennedy "go wild on health care." He also claimed drug companies have engaged in "deception, misinformation and disinformation."
Biotech stocks rose more than 1%, collectively, the days Kennedy was confirmed as the new health secretary. But Investor's Business Daily's 730-company industry group is trading below its 50-day and 200-day moving averages. The group ranks No. 65 out of 197 groups tracked by Investor's Business Daily. Meanwhile, the pharma group ranks No. 161.
The industry group has a Relative Strength Rating of 66, according to IBD Digital. This means the industry group now ranks in the top third of all industry groups in terms of 12-month performance.
But it's key to watch specific measures when examining stocks. In terms of fundamental and technical metrics, the best biotech stocks trading above 10 right now are:
- Catalyst Pharmaceuticals
- Halozyme Therapeutics
- Exelixis
- Corcept Pharmaceuticals
- Alkermes
Highly Rated Catalyst Stock
Catalyst Pharmaceuticals licenses approved or soon-to-be approved treatments for rare diseases and diseases of the central nervous system.
Today, the company has three products. Firdapse treats a neuromuscular condition that often affects small cell lung cancer patients. Fycompa is a seizure treatment. Catalyst also has a Duchenne muscular dystrophy drug called Agamree.
In January, Catalyst struck a deal with Teva Pharmaceutical that will prevent the drugmaker from launching a generic version of Firdapse until 2035.
Promisingly, in the September quarter, Catalyst beat expectations with adjusted earnings of 57 cents per share on $126.4 million in sales. Earnings grew more than 16% year over year, while sales jumped more than 23%.
The biotech stock is above its 50-day and 200-day lines. Shares broke out of a consolidation with a buy point at 24.27 on Jan. 30. But shares later fell as much as 10.5% below that entry, triggering a sell rule. Savvy investors are encouraged to cut their losses when a stock falls 7% to 8% below its entry.
Catalyst stock has a strong Composite Rating of 97 and a Relative Strength Rating of 89.
Catalyst stock is also an IBD Tech Leader.
This Biotech Stock Gets Under Your Skin
Halozyme Therapeutics is an expert in drug delivery.
The company is known for its Enhanze technology, which helps deliver drugs under the skin via a subcutaneous injection.
The technology is behind some of the biggest drugs including Johnson & Johnson's Darzalex Faspro and Roche's Herceptin. Both are cancer treatments. Halozyme also won approval for a subcutaneous form of Roche's multiple sclerosis drug. It's selling under the name Ocrevus Zunovo.
Recently, Halozyme reiterated its outlook for 2024 and raised its 2025 guidance. The company now expects $1.15 billion to nearly $1.23 billion in sales this year. That represents 16% to 23% growth over 2024 projections. Halozyme also expects to earn an adjusted $4.95 to $5.35 per share, an increase of 21% to 30%.
That followed a strong third-quarter report. Halozyme came up with adjusted profit of $1.27 per share, up more than 69%, and $290.1 million in sales, an increase north of 34%. Both measures beat forecasts and the biotech stock surged on Nov. 1, the day of its report.
Halozyme stock has a strong Composite Rating of 97, and a Relative Strength Rating of 86.
Shares are consolidating with an entry at 65.53, and remain above their 50-day and 200-day lines, according to MarketSurge.
Halozyme also lands on the IBD Tech Leaders list.
Exelixis Focuses On Cancer Drugs
Exelixis is a relatively new addition to the list of top biotech stocks.
The company has made a name for itself as a cancer treatment specialist. It sells Cabometyx, a treatment for several forms of kidney, liver and thyroid cancer. The company's Cometriq treats thyroid cancer. Those drugs, together, generated $1.81 billion in preliminary U.S. sales during the fourth quarter, the company said earlier this month.
Exelixis also guided to $1.95 billion to $2.05 billion in sales for 2025.
In the December quarter, Exelixis earned 55 cents per share, minus some items, on $567 million in sales. Earnings beat forecasts by a dime per share and grew about 67% year over year. Sales rose more than 18% and topped projections for $564 million.
The biotech stock is narrowly above its 50-day line and well ahead of its 200-day moving average.
Shares have a Composite Rating of 93 and a lower RS Rating of 90.
The biotech stock lands on the Tech Leaders list as well.
Corcept Crushes Earnings Views
Corcept Therapeutics is proving itself to be a strong biotech stock.
The company has a broad pipeline of treatments in testing for Cushing syndrome, cancer, neurological diseases, addiction and psychiatry. It's best known for Korlym, a treatment for patients with Cushing syndrome who also have type 2 diabetes.
During the third quarter, Corcept earned an adjusted 41 cents per share on $182.5 million in sales. Earnings surged more than 46% and handily beat expectations for 28 cents. Sales surged nearly 48% to top forecasts for $172 million.
The biotech stock broke out of a cup base with a buy point at 62.22 on Jan. 23. Shares are now well above the 5% chase zone, which runs up to 65.33.
It has a Composite Rating of 96 and a RS Rating of 98.
Corcept is also an IBD Tech Leader and ranks No. 30 on the IBD 50 list of elite growth stocks.
Alkermes Returns As A Top Biotech
Alkermes is well known for its neuroscience focus. The company makes Lybalvi, a treatment for bipolar one and schizophrenia. It also has another schizophrenia drug called Aristada and Vivitrol, a treatment for alcohol dependence.
In the fourth quarter, Lybalvi sales climbed 37% to $77 million. Aristada sales were bigger at $96.6 million, but grew a less bullish 16%. Vivitrol sales surged 31% to $134.1 million. Lybalvi sales came up short, while Aristada and Vivitrol sales beat forecasts.
Shares surged about 7.5% on Feb. 13, the day after Alkermes reported its fourth-quarter earnings.
The biotech stock broke out of a lengthy cup-with-handle base with a buy point at 32.25 on Feb. 12. Shares are now above the 5% buy zone.
Shares have a Composite Rating of 94, but a lower Relative Strength Rating of 89.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
