Biotech stocks are on the rise despite having taken a beating after President-elect 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."
Pfizer, Moderna, BioNTech and Novavax stocks slumped on the announcement, while shares of biotech stocks tied to psychedelics jumped. The 728-company Medical-Biomed/Biotech industry group collectively tumbled 4% on Nov. 15, following the post from Trump on the social network X.
Biotech stocks are below their 50-day and 200-day moving averages. The group ranks No. 81 out of 197 groups tracked by Investor's Business Daily. Meanwhile, the pharma group ranks No. 165.
The industry group has a Relative Strength Rating of 61, according to IBD Digital. This means the industry group now ranks in the top half 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:
- Halozyme Therapeutics
- Catalyst Pharmaceuticals
- Corcept Pharmaceuticals
- Exelixis
- Ligand Pharmaceuticals
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.
Earlier this month, 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 96, and a strong Relative Strength Rating of 86.
Shares aren't forming a base, but remain above their 50-day and 200-day lines, according to MarketSurge.
Highly Rated Catalyst Stock Returns
Catalyst Pharmaceuticals licenses already 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 in a consolidation with a buy point at 24.27.
Catalyst stock has a strong Composite Rating of 97 and an RS Rating of 88.
Catalyst stock is also an IBD Tech Leader.
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. But shares fell below their entry on Jan. 24. Shares are well above their key moving averages.
It has a Composite Rating of 95 and a RS Rating of 97.
Corcept Therapeutics is also a Tech Leader.
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 September quarter, Exelixis earned 40 cents per share and reported $539.5 million in sales. Profit topped expectations by 6 cents a share and climbed from no earnings in the year-earlier period. Sales jumped more than 14% and crushed projections for $490.3 million.
The biotech stock rocketed almost 13% on Oct. 30, the day following its third-quarter report. On Jan. 15, Exelixis stock broke out of a flat base with a buy point at 36.97. But shares are now below that entry, having undercut their 50-day line on Jan. 22.
Shares have a Composite Rating of 94 and a lower RS Rating of 91.
The biotech stock lands on the Tech Leaders list as well.
Ligand Focuses On Royalties
Ligand invests in royalty deals and boasts more than 100 partnered commercial and development-stage programs.
Ligand collaborator Merck received Food and Drug Administration approval for its pneumococcal vaccine for adults, Capvaxie. Ligand also agreed to acquire Apeiron Biologics for $100 million. The deal includes royalty rights to a cancer treatment called Qarziba. This is the sixth key asset added to Ligand's commercial-stage portfolio since the beginning of 2023.
Ligand partner Verona Pharma also won FDA approval for its inhaled treatment for chronic obstructive pulmonary disease, or COPD. Ligand will receive a low single-digit royalty on worldwide net sales of the drug, Ohtuvayre.
In the third quarter, Ligand easily beat expectations with adjusted income of $1.84 per share on $51.8 million in sales. Earnings surged more than 80%, while sales climbed north of 57%.
The biotech stock has a Composite Rating of 93 and an RS Rating of 87. Shares are forming a double-bottom base with an entry at 127.86, but are below their 50-day line.
Ligand also lands on the Tech Leaders list.
Follow Allison Gatlin on X/Twitter at @IBD_AGatlin.
