Biotech stocks are lodging a comeback despite unease after the Department of Health and Human Services fired thousands of employees from U.S. health agencies and amid threats of tariffs on drug imports.
Shares whipsawed in early April after President Donald Trump and his administration, in a matter of days, announced "major" tariffs would soon be coming for pharmaceuticals, then delayed country-specific reciprocal tariffs for 90 days for most trading partners, only to clarify the delay doesn't pertain to sectoral tariffs.
Investor's Business Daily's Medical-Biomed/Biotech industry group fell 18% this month through April 9. But shares rebounded bullishly that day and have since risen 19% off that low point.
The 716-company industry group ranks No. 60 out of 197 groups Investor's Business Daily tracks. Further, the Relative Strength Rating of 68 — a measure of 12-month performance against all other groups — has fallen from a stronger 76 just a month ago.
Further, Robert F. Kennedy Jr., the new HHS secretary, is a controversial vaccine skeptic who has touted vitamin A as a treatment for measles amid a devastating outbreak and has pledged to find the cause of autism in mere months. One key Food and Drug Administration official resigned, citing RFK Jr.'s "misinformation and lies."
But it's key to watch specific measures when examining stocks. In terms of fundamental and technical metrics, some biotech stocks are showing strength. The best biotech stocks trading above 10 right now are:
- Catalyst Pharmaceuticals
- Halozyme Therapeutics
- Exelixis
- GeneDx
- ADMA Biologics
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.
Catalyst struck a deal with Teva Pharmaceutical that will prevent the drugmaker from launching a generic version of Firdapse until 2035.
During the fourth quarter, Catalyst earned 70 cents per share, minus some items, and reported $141.8 million in sales. Both metrics easily topped analysts' forecasts. Earnings surged 32% and sales rose about 30%. This year, Catalyst expects $545 million to $565 million in sales.
The biotech stock recently retook its 50-day moving average, and remains north of its 200-day line. Shares broke out of a consolidating with a buy point at 24.64 on March 24, according to MarketSurge. Shares have now fallen more than 17% from that entry. 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 98 and a Relative Strength Rating of 92.
The biotech stock has returned to the IBD Tech Leaders list.
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 reported adjusted earnings of $1.26 per share on $298 million in sales for the fourth quarter. Both measures topped forecasts, with earnings growing almost 54% and sales climbing nearly 30%. For 2025, Halozyme expects $1.15 billion to $1.225 billion in sales, up 13% to 21%. The company also guided to 17% to 26% adjusted profit growth.
Halozyme stock has a strong Composite Rating of 97, and a Relative Strength Rating of 91.
Shares broke out of a consolidation with an entry at 65.53 on March 24. But the biotech stock has since fallen as much as 15% below its entry. Halozyme shares remain above their 200-day line, and are sitting on a floor at their 50-day moving average.
Halozyme lands on the IBD Tech Leaders list.
Exelixis Focuses On Cancer Drugs
Exelixis continues to land on 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.
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 company also guided to $2.15 billion to $2.25 billion in sales for 2025. That includes $1.95 billion to $2.05 billion in sales of its products.
The biotech stock is above its 200-day line and is now trading just above its 50-day moving average. Shares are consolidating with an entry at 40.02. Exelixis stock has a Composite Rating of 97 and a lower RS Rating of 95.
The biotech stock lands on the Tech Leaders list as well. Exelixis also ranks No. 38 on the IBD 50 list of elite growth stocks.
GeneDx Makes Its Way Back
GeneDx has returned to the list of top-notch biotech stocks.
The company makes sequencing tests that scan a person's exome or genome. The exome accounts for all protein-coding genes within a person's DNA, while the genome accounts for all genes, regardless whether they code for proteins.
During the fourth quarter, GeneDx earned an adjusted 77 cents per share on $95.6 million in sales. Earnings flipped from a year-earlier loss, while sales climbed almost 65%.
The biotech stock rocketed nearly 48% on Feb. 18 after GeneDx announced a rapid test to deliver results in as soon as 48 hours to help critically ill newborns and children in a hospitals' intensive care units.
Shares have a perfect Relative Strength and Composite ratings of 99. GeneDx shares are trading above both their key moving averages. The biotech stock's relative strength line has never been higher. Shares are nearing a breakout with a buy point at 115.60 out of a consolidation.
The biotech stock is a Tech Leader, and ranks 25th on the IBD 50.
Biotech Stock Recovers
ADMA Biologics is known for its human immune globulin products. These drugs are intravenous infusions for people with immunodeficiencies.
Last year was rocky for ADMA. Its independent auditor unexpectedly resigned in October, leading shares to plummet. In early November, ADMA signed a new auditor and the biotech stock recovered.
Shares slipped on the company's fourth-quarter report. ADMA earned 14 cents per share on $117.5 million in sales. Earnings lagged expectations, but flipped from a year-earlier loss. Sales beat forecasts and surged 59% year over year.
Still, ADMA Biologics is holding up well compared to most of its biotech brethren. Shares broke out of a cup-with-handle base with a buy point at 20.70, according to MarketSurge. But it's important to note in risky market environments, IBD recommends a limited exposure to the stock market.
The biotech stock is also holding above its key moving averages with a strong Composite Rating of 98 and a matching Relative Strength Rating.
The stock lands on the Tech Leaders list, and has returned to the IBD 50 where it ranks first.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
